IT leaders have a problem. That problem is a lack of talent in the countries they operate in. With more and more businesses taking a software-centric approach to diversification, elite level engineers aren’t a bonus but a necessity. To overcome this shortage of available skills, many are exploring new routes to local hiring. Outsourcing is common for smaller projects. But for a sustainable solution, many are looking to build a dedicated offshore development team. This is a team of engineers that work only for that business and are full-time employees as opposed to external ‘hired hands’.
Something that is very similar to a dedicated team is a software development team extension, where you augment existing capacity with engineers in an overseas location. It used to be about finding a price unavailable at home, whereas now tech leaders see it as a way to acquire skills they can’t find at home.
What is a software development team extension?
On the one hand, with an outsourced team the developers hired aren’t really your own in any real sense. On the other hand, with a fully dedicated, integrated, offshore software development team extension it’s a totally different story. Your engineers aren’t simply assigned to you by a third-party software house but actual employees of your organisation. They’re treated exactly the same as your developers at home, and if aligned correctly will form a genuine part of your wider development operations.
An extension ultimately helps you to bring in the required skills you need. From developers used to working with particular methodologies, to engineers fluent in a specific language. As a result, your organisation may be better positioned to meet strategic goals such as bringing products to market faster or maintaining delivery during a time of disruption.
What are some team extension benefits?
The primary benefit of a software development team extension is that it enables you to scale your team easily with top-tier engineers that you might not have been able to find at home in the US, UK, and other western countries. Or, when you do find them, they're exorbitantly costly to hire due to the fierce engineering seller’s market that’s currently taking place in those regions. This is a result of the very largest enterprises poaching the very best developers and offering them perks and compensatory benefits off limits to smaller players.
With the dedicated development team extension approach, the engineers work only for your business. And, they’re full-time, genuine colleagues as opposed to external support or mere ‘hired hands’. Due to the engineers being in house and not externally positioned, any upskilling and expertise is kept within the business. With outsourcing, such capability and knowledge can be lost if your business stops working with that particular vendor for some reason.
Software development team extension model
A model of sorts only comes into discussion when you consider working with an offshore development partner. It's geared around building a properly integrated team in an emergent tech hub to augment your existing development setup with highly talented, full-time engineers. The developers hired aren’t just aligned culturally, but are a crucial component in your software development process.
An offshoring model typically refers to the processes an offshore company has for recruitment, administration, operations, and ongoing engagement of engineers. It may encompass onboarding and cultural alignment, and demonstrate their capabilities in regards to ongoing scaling. Not all offshoring companies are created equal, so it’s wise to do your own extensive research unless you get a superb word-of-mouth testimonial from a source you trust.
Team extension vs outsourcing: what’s the difference?
As already discussed, there’s a clear delineation between outsourcing and a software development team extension. With outsourcing, the developers aren’t really hired but allocated to you. And, they’re often there on a project-by-project basis. As such, they're not particularly invested in your mission and vision as an organisation, since they're usually working for several businesses at the same time.
Rather than outsourcing smaller projects, companies should build a dedicated offshore development team or augment their existing capacity with engineers in an overseas location, as such a team includes access to top-tier engineers who may not be available or affordable in your home country while retaining direct control over the direction of your projects and products.
The expansion of an offshore software development team differs from outsourcing in that developers work only for business and are full-time employees. This can help companies create a properly integrated team in an evolving technology center to complement the existing development system with highly qualified engineers. Andersen suggests doing a thorough research before choosing a partner.
You also retain direct control over the direction of your projects and product because the developers are in house as opposed to working for you via an external vendor. This is a favourable comparison to outsourcing, as with that route you leave yourself open to a potential loss of control over your product. Why? Well there can be a confusion over who assigns tasks and the developers are often juggling multiple projects for multiple clients. As a result, outsourcing may work excellently for one-off projects that don’t require continual iterations and delivery. However, for long-term value generation an offshore software development team extension is more highly recommended.
Like anything there are one or two potential drawbacks. One to consider is that because a team extension is a long-term augmentation of your setup, the developers are full-time staff. This of course means that you can’t scale down on demand without taking long-term contracts, redundancy packages et cetera into account. This is something you don’t need to worry about with outsourcing.
How to set up a software development team extension
Of course, you can go it alone. You can establish a presence in the location you’re offshoring to and begin recruitment. This would typically involve creating branded recruitment pages, sourcing the local market, multiple interview rounds, and of course handling the logistical and administrative challenges. Some companies do choose to do it this way and have great success. However, most choose to partner with an expert on the ground. As explored above, they’ll understand present market conditions better than you and will source and interview candidates based on your specific requirements. Typically, you’ll have the final say on who gets hired to ensure optimal cultural fit.
Before selecting a partner, it's prudent to do thorough research of the field. This can be as simple as checking their website and existing case studies, particularly if they've successfully worked with companies similar to your own. You can of course also speak to them and hear about their model and how it works in practice regarding recruitment and administration. Perhaps best of all is looking to see if there are some testimonials from existing clients they've helped achieve a goal similar to what you're aiming for.
If you’re looking for a long-term, highly scalable and sustainable alternative to local hiring and the corresponding talent battle — then an offshore development team extension could be the solution for you.
Date Of Update: 06 March 2023, 20:39
