Dedicated Team vs Extended Team: Deciding on the Perfect Team Model for Your Project

Dedicated Team vs Extended Team

Important Point: When venturing into unfamiliar territory, the team you pick is crucial. Likewise, when outsourcing your project, the team model you opt for determines your project’s success. This blog delves into the detailed distinctions between dedicated and extended teams. It defines and clarifies the variations between a dedicated team and an extended team, advises on when to use each model, and highlights emerging trends influencing the global IT industry.

Factors Dedicated Team Model Extended Team Model
Projects Suitable for long-term and complex projects Ideal for short-term and specialized projects
Skill requirements In-depth and high knowledge skillset Niche and diverse skill needs
Control Control over resources Restrictive control
Cost Higher budget Lower budget
Use Cases – Software development – Marketing and research development
– CRM – Product management
– Mobile app development – Data analysis and reports
– Social media management – Designing products


The IT outsourcing industry is booming, set to hit a whopping $512.50 billion in revenue by 2024, with an expected growth rate of 10.99% that could reach $777.70 billion by 2028, as per Statista. This growth trend indicates a rising demand for flexible, innovative, and expert solutions. However, choosing the right team model for your project isn’t a one-size-fits-all scenario. Businesses often find it challenging to pick between a dedicated team and an extended team. In this blog, we’ll guide you through the significance of team models, offer a straightforward comparison between dedicated and extended teams, and help you decide when to choose each model for optimal project outcomes.

Understanding Dedicated Teams:

Dedicated teams, as the name suggests, are outsourced groups hired for specific projects or skills. These teams are chosen based on the project’s requirements and are typically engaged for a more extended period.

The entire team boasts exceptional expertise. There are two main types of dedicated teams: internal dedicated teams and external teams. In the case of internal dedicated teams, managers assemble a group of individuals, each with specific skills tailored to a particular project. For instance, during a mobile application development project, a dedicated UI/UX team may be formed. This team works consistently on tasks assigned by the manager or team lead, collaborating until the project is completed or the goal is achieved.

Advantages of Hiring a Dedicated Team:

  1. Full control over resources
  2. Access to global talent and enhanced technical capabilities
  3. Professionals with broad skill sets and extensive experience
  4. Strategic planning and improved quality assurance

Best for: Long-term projects and achieving specific goals

Understanding Extended Teams:

The extended team merges an expanded in-house or current in-house team with an external team, aiming to boost software development with added expertise. This team enhances the internal team’s capabilities or fills in the expertise gap for a set period. Additionally, they unleash the potential of ongoing or new projects by contributing their technical skills, elevating overall software development capabilities. In essence, the extended team acts as the supporting hand to the in-house team, aiding in the completion of specific projects with their skill set.

Advantages of Hiring an Extended Team:

  1. Scalability and enhanced technical capabilities
  2. Specialists for niche projects
  3. Streamlined processes leading to increased productivity
  4. Cost-effective compared to hiring additional staff

Best for: Short-term projects and adding specific skills and expertise to scale up an in-house team.

1.    Flexibility:

The outsource team model demands adaptability, as these teams undertake tasks assigned by other organizations or managers. While both dedicated and extended teams exhibit flexibility in outsourced operations, a closer look reveals that extended teams excel in adaptability.

Dedicated teams, working within limited resources, typically stick to a set of tasks linked to specific projects, restricting their flexibility. On the other hand, extended teams showcase greater flexibility by seamlessly adjusting to project modifications. They can scale up resources and tailor their approach to meet evolving requirements.

🏅 Verdict: The dedicated team takes the lead in flexibility.

2.    Scalability:

When considering scalability, the extended model emerges as the clear winner. While a dedicated team model provides scalability in terms of resource flexibility and workflow, its long-term commitment may limit swift adjustments. On the flip side, a dedicated team can easily adjust its size, but this flexibility is confined to a specific period based on demand.

With the extended team, you can effortlessly scale up or down resources with skilled professionals, allocating resources according to project needs. Additionally, extended teams act as external support for your in-house team, making it easier to adapt to evolving changes as they can adjust their workload.

🏅 Verdict: The dedicated team takes the lead in scalability.

3.      Communication:

Efficient communication is crucial for any outsourcing software model, be it an in-house or external team. When it comes to optimal communication, the dedicated team takes the lead. A dedicated team ensures clear and effective communication due to its fixed structure.

Conversely, an extended team also maintains clear communication, but changes can occur as both internal and external teams collaborate. Moreover, evolving requirements may pose challenges, especially for long-term projects.

🏅 Verdict: The dedicated team excels in providing the best communication in the team model.

4.      Processes and Tools:

When it comes to processes and tools, both extended and dedicated teams shine equally. A dedicated team adheres to a well-defined process, ensuring smooth work efficiency and internal communication, thanks to pre-defined tasks and team structure. On the flip side, the extended team adds a layer of adaptability to this seamless process, molding it to meet the evolving demands of the organization.

Dedicated teams utilize various collaboration tools like Slack or JIRA, catering to agile and waterfall project management methodologies. Similarly, extended teams employ a range of project management tools, including video conferencing, document-sharing platforms, and collaborative tools, effectively bridging physical distances and enabling seamless collaboration.

🏅 Verdict: In the extended team vs. dedicated team debate, both are equally dynamic and efficient.

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5.      Security:

Security is crucial in outsourcing software development, and both team models excel in providing robust security in the dedicated team vs. extended team comparison. The dedicated team stands out with high-security standards and protocols, granting the team direct control.

Conversely, extended teams offer mid-level security due to limited organizational control. They adhere to specific security practices and rely on managers for guidance.

🏅 Verdict: A dedicated team ensures more robust security compared to an extended team

6.      Future Prospects:

When comparing the future evolution of a dedicated team vs. an extended team, both team models showcase the brilliant capability to enhance a project. Furthermore, you have the flexibility to expand resources in the future, as both provide the option to scale up or down.

Additionally, the demand for both dedicated and extended teams is high, giving you the freedom to choose either for your project.

🏅 Verdict: Both provide a promising outlook for future resource dynamics.

7.      Popularity:

Comparing an extended team vs. a dedicated team based on popularity might seem challenging, as both are popular and preferred in their own right. Businesses seeking high control over processes and resources often opt for a dedicated team, especially for long-term projects.

On the other hand, the extended team is suitable for businesses looking to enhance their project with specialized skills. It’s also a preference for small-term projects and mid-size companies aiming to achieve their goals with a specific skill set.

🏅 Verdict: It varies based on project specifications, making both crucial in their own way.

8.      Agreements:

As a business owner, you understand the crucial role agreements play in outsourcing projects. A single mistake could result in the loss of money, resources, and intellectual property rights. When comparing extended and dedicated teams, the dedicated team agreement stands out as more systematic and comprehensive than the extended team model.

The agreement for a dedicated team involves the service provider and the client, while the extended team model’s agreement is internal to the hired company. The dedicated team model comes with pre-defined agreements, lasting until project completion, while extended team model agreements can vary based on the organization’s project specifications.

🏅 Verdict: A dedicated team is preferred for secure agreements.

9.      Cost-effectiveness:

One of the most crucial and frequently compared aspects in the dedicated team vs. extended team debate is cost-effectiveness. But getting straight to the point, both team models offer cost-effectiveness, with the project timeline playing a pivotal role. The dedicated team proves cost-effective for long-term projects, while the extended team is suitable for short-term projects.

Additionally, the choice between the two models depends on the required skill set and time constraints. Opting for an extended team is suitable when specific skills or specializations are needed for a limited duration, following a pay-per-skill model.

🏅 Verdict: Opt for a dedicated team for extended projects and an extended team for shorter-term projects.

10. Range of Services:

The final and equally crucial point in the extended vs. dedicated teams comparison is the array of services these team models can offer your business. A dedicated team delivers customized expertise, long-term partnerships, continuous development support, and a collaborative environment.

On the flip side, extended teams offer effective project management, resource augmentation, quality assurance, and hands-on technical expertise and skills.

🏅 Verdict: It varies based on project needs, as both are scalable and flexible in their own way.

When to Hire a Team Model?

While dedicated teams and extended teams fall under the IT staff augmentation model, they differ significantly. Therefore, it’s essential to understand when to hire each team model.

When to Hire a Dedicated Team Model?

Understanding the right situations for hiring a dedicated team can greatly benefit your business project.

Ideal for Early-Stage Startups: If you’re an early-stage startup with growth expectations, opting for a dedicated team model can be beneficial. It enables quick team building without the need for an entire in-house team, allowing startups to concentrate on vital tasks like marketing and product branding. Most importantly, it proves cost-effective for startups, avoiding the need to recruit a complete in-house team.

Mid-Size Companies with Complex Projects: Mid-size companies facing complex, long-term projects or seeking to bridge skill gaps without overwhelming their in-house teams can opt for a dedicated software development team. This choice facilitates long-term scalability and knowledge retention.

Large Enterprises with Strategic Goals: Large companies keen on entering new markets, launching disruptive products, engaging in internal R&D, or smoothly integrating new companies find hiring a dedicated team beneficial. It allows them to leverage niche skills not present in their in-house teams or obtain expertise in specific geographic areas.

Also, consider hiring a dedicated development team when:

  • No Experts on Hand: If you lack in-house experts for your project needs, a dedicated development team can provide the required expertise.
  • Lack of Skill Set: When facing a shortage of specific skills in your current team, hiring dedicated developers helps fill the skill gap.
  • Complex Projects to Handle: For intricate and challenging projects, a dedicated team’s focused attention and expertise can ensure successful completion.
  • Access to the Latest Technologies: A dedicated development team stays updated with the latest technologies, providing your project with access to cutting-edge tools and methods.
  • Internal Process Optimization: When aiming to optimize internal processes, dedicated developers bring efficiency and streamlined workflows to your projects.

When to Hire Extended Team Model?

Explore the insights and examples to understand when hiring an extended team model is the right choice.

Startups Filling Skill Gaps: Startups often turn to extended teams to bridge skill gaps. By bringing in professionals with specific skills, startups can achieve their goals and enhance their products efficiently.

Mid-Size Companies Needing Additional Support: Mid-size companies opt for extended teams when they require extra support. These teams collaborate closely with in-house teams, providing advanced features and ensuring high-quality work, essentially acting as additional members to complete projects.

Large Enterprises Aiming for Faster Accomplishments: Large enterprises choose extended teams to expedite goal achievement. These teams bring innovative ideas and specialized skills, enhancing projects and saving time compared to recruiting new in-house team members.

Also, consider hiring an extended development team when:

  • Shortage of In-House Expertise: If your company lacks in-house expertise for specific project needs, an extended development team can bring the necessary skills to the table.
  • Lack of Specific Skills: When facing a shortage of certain skills within your existing team, opting for an extended development team fills the skill gap.
  • Restricted Budget: If you’re working with budget constraints, an extended development team can offer cost-effective solutions compared to expanding your in-house team.
  • Urgent Tasks to Complete: When there are urgent tasks that need immediate attention, hiring an extended development team ensures a quick and efficient project turnaround.

Note: The decision to hire may vary based on company-specific projects and needs. This checklist focuses on the general requirements for choosing a team model.

Current Trends and Transformations in Team Models

The IT outsourcing landscape is witnessing a noteworthy shift with the emergence of Hybrid team configurations. Companies are now blending their in-house talent with external experts, leveraging both dedicated and external teams. This innovative and flexible approach allows global organizations to maintain essential skills internally while accessing specialized expertise when required.

This trend highlights how the industry is embracing remote work, making it a prominent aspect of evolving team models. The flexibility is evident in the ease of hiring freelancers worldwide. Additionally, cutting-edge technologies such as Artificial Intelligence, Machine Learning, and Big Data are redefining work models. According to a PwC report, almost 99% of companies are incorporating AI-based approaches to streamline operations for various tasks.

An impactful shift in IT outsourcing models is the increased focus on Agile methodologies. Whether hiring a dedicated team or an external team, companies are prioritizing the use of agile methodologies to enhance adaptability and responsiveness.

As remote work becomes more prevalent, data security takes center stage. Organizations engaging dedicated or extended teams now emphasize proactive measures for data protection, including access controls, routine security audits, and continuous cybersecurity training.

To stay updated and benefit from these emerging trends and innovations, reach out to Kanhasoft. Our experienced developers can help you choose the ideal team model, and we offer flexible hiring options, including hourly, monthly, or fixed-cost projects.

If you’re seeking detailed insights into offshore dedicated teams, feel free to download our white paper – “Offshore Dedicated Development Team: Hire, Manage & Leverage”

Final Words

Both dedicated and extended teams bring unique advantages to the table. This comparison blog post on dedicated team vs. extended team aims to guide you in making informed decisions to elevate your project. Dedicated teams shine in long-term projects, while extended teams excel in enhancing existing projects. However, it’s essential to select a team model that aligns with your goals and offers multiple benefits to your product or project.

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Frequently Asked Questions (FAQs)

Q. What is Team Extension?
A. Team extension involves adding in-house professionals to your team, closing skill gaps, and facilitating software development. It’s also known as staff augmentation, offering a flexible staffing model that scales up your project.

Q. Can You Employ Both Dedicated and Extended Teams for Your Project?
A. Certainly, you can have both dedicated and extended teams working on your project simultaneously. This choice depends on your project needs, such as specific functionalities, additional niche tasks, or specializations.

Q. How much would it cost to engage a dedicated team model versus an extended team model?
A. Hiring a dedicated team model typically ranges from $1000 to $5000, varying based on project duration and resource needs. On the other hand, an extended team comes with an hourly pay, ranging approximately from $70 to $1000.

Q. What factors should I consider when selecting the appropriate team for my project requirements?
A. When deciding on your project team, take into account the following aspects:

  1. Project expectations
  2. Skill requirements and proficiency levels
  3. Budget and commitment
  4. Control and integration

Q. Can one transition from a dedicated team to an extended team?
A. Yes, the switch is feasible, but it’s essential to carefully assess certain factors before implementing changes in the project:

  1. Optimize and expand team resources
  2. Ensure the scalability of the project is not compromised
  3. Evaluate the need for additional skill sets