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Managed Extended Teams – an upgrade from traditional outsourcing

Do you need to expand your team quickly? Is the talent pool lacking in your region? Then consider growing your group using a Managed Extended Team Model. Not sure what a Managed Extended Team Model is or what are the advantages? Don’t worry, we’ve got you covered!


There are many options when it comes to outsourcing, but there is one option that stands out from the crowd. The managed extended team model is becoming a popular choice because of the many benefits that it offers over the traditional outsourcing model. 

Managed Extended Teams vs. Traditional Outsourcing

In the extended team model, the outsourced team members are, as the name suggests, an extended part of the central team. While under a traditional outsourcing scheme, they could be considered a completely separate entity of the project. In the
extended team model, they are a core part of the team that happens to work in another office space. 

While with traditional outsourcing you hand over the reins to another management team. In an extended team model, the company owner is still managing the team but enjoying the benefits of outsourcing. These benefits include hiring staff with skills that may be lacking in your home base, labor cost savings, and the ability to grow your team quickly. 


An extended team model is a great option, but an even better option is the managed extended team model (METM). 


Imagine having the perks of an extended team model but the bonus of an active collaboration between the outsourced team and the home team.  You’re working closely with the extended team management, and you both share the risk and responsibility involved with the partnership.

Benefits of Managed Extended Teams 

> Sense of responsibility

The core of the model is building a foundation of strong relationships. As the extended group work in close cooperation with the home unit, they feel like part of the team, working together toward the same goals with a shared sense of responsibility. Your remote colleagues are fully dedicated to your project and fully incorporated into your software development processes and methodology.

Ready to realize the benefits of Managed Extended Teams?

Find out more with our expert advice.

> Tête-à-tête 

In the managed extended team model, the communication process is more efficient than traditional outsourcing. Instead of filtering communication between colleagues through a project manager, members talk directly with each other. Which reaps two benefits – it saves time and also reduces the risk of miscommunication.

> Crystal clear

As the project owner, you are still in control of the project. There’s full transparency with what is happening within the project, and you have a clear idea of the status of goals and tasks. There’s daily communication directly with the project team, which allows you to deal with any matters that arise immediately. There is also transparency when it comes to costs, with time and materials model in place with your METM partner.

> In it for the long haul

Using the METM for your project implies long-term cooperation with the extended team and management. You don’t have to worry about any gaps in your team; your partner will work with you to find staff with long term cooperation in mind. There is an ongoing recruitment process that mitigates the resources attrition risk and reduces time to market should you want to add more resources to your extended team, so the project continues to flow smoothly without stopping and starting. 

> Save time

By working with a partner, to grow your managed extended team, you can save valuable time in the recruitment process and benefit from the economy of scale of the business and team management processes already run by your partner. A partner dedicated to your project can efficiently recruit staff and reduce your attrition as they know the local market well. They can also reduce your software development TCOs at the same time benefiting from the remote market cost differences including that you don’t need your local office or on-site management. 

> Take a load off

Let your focus be on kicking off project goals with your team and leave the everyday details to your METM partner. There’s no need to worry about the office space and developer equipment requirements, local management or resources attrition your partner looks after these details. 


In a nutshell

If you’ve been on the fence about managed extended teams, discovering the benefits should put your mind at ease about adopting this method. Utilizing this model allows you to still be in charge of your project with full transparency and support of your managed extended team partners while taking advantage of the benefits of outsourcing to a remote market.

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