Best technical talent for team extension

IT Staffing is an alternative to IT outsourcing, but these two remain viable solutions in different scenarios. If you already have an internal team but lack specific specialists and you don’t want to hire new employees full-time, then extending your team with this method is a great solution. On the other hand, if you don’t have a team or prefer to have your project to be fully delivered externally, then IT outsourcing remains good practice.

Typically, from 2 to 4 weeks. The time can also depend on the technology you use, as some are more common, and some might be very rare and also on the level of expertise you’re looking for, e.g., senior positions take longer to fill. However, it is all possible with Nqode, a software development company in Serbia with a well-established reputation in the talent market.

Startups should consider the team extension model for several reasons:

1. Access to specialized skills: Startups often have limited resources and may not have the in-house expertise required for certain tasks or projects. By opting for the team extension model, startups can tap into a pool of specialized skills and knowledge that may not be available within their core team. This allows them to access talent in areas such as software development, design, marketing, or data analysis, enhancing their capabilities and competitiveness.

2. Scalability and flexibility: Startups typically experience fluctuations in workload and project demands. The team extension model provides scalability and flexibility to quickly adjust the team size based on the project requirements. Startups can augment their core team with external resources for specific projects or periods, allowing them to scale up or down as needed without the long-term commitments associated with traditional hiring.

3. Cost-efficiency: Hiring and maintaining a full-time in-house team can be costly for startups, especially considering expenses such as salaries, benefits, office space, and equipment. The team extension model allows startups to access talent on a project or contract basis, reducing overhead costs. Additionally, startups can save on recruitment and onboarding expenses by leveraging the expertise of an external team without the need for lengthy hiring processes.

4. Faster time to market: Startups operate in a highly competitive environment, where time to market can be crucial. By engaging a team extension model, startups can accelerate their development process and bring products or services to market more quickly. With a dedicated team of external specialists, startups can leverage their skills and experience to expedite project delivery, reducing time and effort required for training and ramping up an entirely new in-house team.

5. Focus on core competencies: Startups often have limited bandwidth and need to focus on their core business activities. Outsourcing non-core functions to an extended team allows startups to concentrate their internal resources on their key competencies, such as product development, customer acquisition, or strategic planning. This enables startups to maintain their focus on critical areas while leveraging external expertise to handle other aspects of their business.

6. Cross-cultural collaboration and knowledge sharing: Engaging an external team through the team extension model can bring diverse perspectives and experiences to the startup. It provides an opportunity for cross-cultural collaboration and knowledge sharing, allowing startups to benefit from different working styles, problem-solving approaches, and industry insights. This can foster innovation and help startups broaden their horizons.

The team extension model and the managed team model are two different approaches to outsourcing or augmenting a company’s workforce.

Team Extension Model

• The company extends its existing team by hiring external resources on a project or contract basis.
• The company retains control over the project management, decision-making, and overall strategy.
• The external resources work as an integrated part of the company’s team, collaborating closely with the internal employees.
• The company is responsible for managing and coordinating the activities of the extended team.
• The focus is on leveraging specific skills and expertise that may not be available internally.
• The company typically handles the day-to-day management, communication, and supervision of the extended team.

Managed Team Model

• The company outsources the management and coordination of a dedicated team to a third-party service provider.
• The service provider is responsible for assembling and managing the team, ensuring the availability of resources, and handling administrative tasks.
• The service provider takes care of project management, team coordination, and performance monitoring.
• The company maintains control over the strategic aspects of the project while delegating the operational responsibilities to the service provider.
• The focus is on obtaining a fully managed and self-sufficient team that can handle specific tasks or projects independently.
• The company typically has a more hands-off role in day-to-day management and relies on the service provider to handle the team’s activities.

KEY FACTORS TO CONSIDER

1. Control and involvement: With the team extension model, the company has more direct control and involvement in managing the extended team. In the managed team model, the company relinquishes some control and relies on the service provider for team management.
2. Management responsibilities: In the team extension model, the company retains the responsibility for managing and coordinating the extended team. In the managed team model, the service provider takes on the management responsibilities.
3. Scalability and flexibility: Both models offer scalability, but the team extension model allows for more flexibility in adjusting the team size and composition based on project requirements.
4. Expertise and self-sufficiency: The team extension model allows the company to leverage specific skills while maintaining close integration with the internal team. The managed team model provides a self-sufficient team managed by the service provider, potentially offering a broader range of expertise.
5. Cost and resource allocation: The cost structure and resource allocation differ between the models. In the team extension model, the company typically has more control over resource allocation and cost management. In the managed team model, the service provider handles these aspects.

Ultimately, the choice between the team extension model and the managed team model depends on the specific needs, preferences, and capabilities of the company. Each model has its advantages and considerations, and it’s essential to evaluate them based on the unique requirements of the project or organization.

The team extension service offers customized pricing based on the specific requirements of the project or organization. Rates can be determined through negotiation and may be structured as hourly rates, fixed project fees, or monthly retainer agreements.

Here are some key considerations that can influence the cost:

1. Project Scope: The complexity, duration, and size of the project play a significant role in determining the cost. Larger and more complex projects generally require a larger team, resulting in higher costs. Additionally, projects with longer durations may involve more extensive resource commitment, impacting the overall cost.

2. Skillset and Expertise: The specific skills and expertise required for the project can affect the cost. Highly specialized skills or niche expertise often come at a premium compared to more common or general skills. The demand and availability of professionals with the required skillset can also influence the cost.

3. Team Size: The size of the team being extended or augmented impacts the cost. A larger team will naturally incur higher costs compared to a smaller team. The number of professionals needed to achieve project goals and meet timelines directly affects the overall expenditure.

4. Experience and Seniority: The level of experience and seniority of the extended team members can affect the cost. More experienced professionals with a proven track record typically command higher rates. Their expertise and ability to handle complex tasks can contribute to the cost difference.

5. Geographic Location: The cost can vary depending on the geographic location of the team extension service provider. Rates can differ significantly between countries and regions due to variations in labor costs, market conditions, and currency exchange rates. Offshore or nearshore team extension services may offer cost advantages compared to onshore options.

6. Contract Duration: The duration of the team extension engagement can influence the cost structure. Longer-term contracts may offer cost savings compared to shorter-term engagements. Some providers may offer discounted rates for extended partnerships or ongoing collaborations.

7. Value-Added Services: Additional services provided by the team extension service provider, such as project management, quality assurance, or dedicated account management, can impact the cost. Value-added services contribute to the overall value proposition and may come at an additional cost.