Team extension, extended team & out-sourcing FAQ

What is the difference between an extended team, a team extension and staff augmentation?

These 3 terms all refer to using a service provider to source and contract remote workers on a temporary (though possibly long term) basis.

There is one stand-out – staff augmentation can be used in a more general sense. You can use staff augmentation to refer to placing people in multiple roles throughout a business. But extended team and team extension refer specifically to adding people to a particular team or even a particular team project.

What is the difference between off-shoring, near-shoring, out-sourcing and an extended team/team extension?

Off-shoring is a general term that refers to using workers of a service provider in another country to fill roles or perform role-related tasks, within your business.

Near-shoring is similar to off-shoring but it implies that the workers are located in a nearby country or time zone to reduce the management and collaboration difficulties that working across widely different time zones can create.

Out-sourcing is when a project or service that would traditionally be executed in-house is handled completely by an external service provider. The service provider is normally located off-shore in an attempt to reduce costs.

Extended team or team extension is when a project team is expanded by the hiring of remote team members through a team extension provider. The extended team members working remotely report to the same management as the in-house team, they work side-by-side with the in-house team on any projects, and participate in all meetings, but all their necessary resources – computers, office space, etc – are supplied by the team extension provider.

What is the team extension model?

Under the team extension model you are responsible for managing your own project even though the work is being done by external contractors. Under an out-sourcing model the project management would also be handled externally.
The benefits of the team extension model are that you have complete control over the project and complete visibility into how it is progressing. You can spot, diagnose and fix any problems as soon as they occur.

The drawback of the team extension model is that you need a competent project manager inhouse in order to see the project to successful completion.

What is the extended team model?

The extended team model, or the extended development team model, is just the team extension model by another name. You will see both used online. Which one an author favours depends mostly on which region they’re in.

What is a core team?

The core team is made up of inhouse employees who established the project and were solely responsible for moving the project forward before a team extension is added to the effort.

The core team holds the business and domain expertise that the project relies on. They work with the team extension members under a project or product manager to complete the project and serving as a source of guidance and deep knowledge for the extended team.

 

Why do businesses use team extensions?

A team extension creates three main advantages for a business. These are particularly beneficial when the business is following the extended development team model for software bsed products.

The three main advantages of a team extension are:

  1. Rapid hiring – team extension staff are pre-vetted by the service provider. Tell them what skills you need and you can be interviewing applicants for team fit on the same day.
  2. Access to expertise – depending on your local labour market, access to certain technical skills might be difficult or very expensive. A team extension provider enables you to hire outside of your local labour market, opening you up to a larger talent pool.
  3. Predictable and manageable costs – by extending your development team using the team extension model, your cost for the extended team members is fixed once negotiated with the service provider. Furthermore, the service provider is responsible for supplying office space and equipment for the extended team members, limiting your costs to the agreed hours the team members work.

Who manages the extended team?

Unlike in out-sourcing, the management of the remote members of an extended team is handled by the business contracting them. This requires an inhouse project manager experienced in dealing with remote team members.

Post-Covid this is now the status quo. But if a business has pursued a back-to-the-office strategy for their developers, care needs to be taken that the remote members of the extended team are fully integrated into the day-to-day operations and culture of the business and especially for the project they are working on.

What happens if an extended team member doesn’t perform?

In the unlikely event that a business believes an extended team member isn’t performing well, this challenge is resolved in a similar manner to how it would be resolved for an inhouse employee.

The situation is better than that with a standard remote employee, because the extended team member is also under local supervision and monitoring by the service provider.

If the problems turn out to be unresolvable, it is quick and easy to select, vet, and contract a new extended team member from the service provider’s talent pool.

 

What kind of work can an extended team do?

An extended team can be contracted to work directly on a project. This can be in order to access expertise to develop certain features, or to shorten timelines for project completion.

Outside of software development on a business’s product, an extended team can be contracted to provide support services, such as devops for an existing team or project, and to keep important and complex applications online and available to customers.

Moving beyond software, an extended team can provide design and UX expertise early in a project, as well as ongoing customer service support and technical support once a project is online.

What are the biggest challenges in using a team extension?

The big challenges in a team extension are simply variants of the same challenges businesses face with any employee. Onboarding is critical.

Having a manager or mentor available to chat or video call in order to quickly resolve the kinds of problems that show up in the early stages of employment will make onboarding easier and get members of the team extension working productively as quickly as possible.

The other major challenge is integrating the team extension staff with the inhouse team. But this can be handled by simply holding meetings, standups, code reviews, etc, via video so that everyone can participate on an equal footing.

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