External Team Extension Models for Enterprise Leaders: Operating Models That Scale
Augmenting in-house teams with external talent brings greater flexibility and scalability to the business. Here, we’ll discuss the various external team extension models and the advantages of resource augmentation that C-suites can utilize. In competitive, ever-changing markets, enterprises should have the necessary talent, technology, and resources to be productive and generate revenue. From establishing brand image to ensuring customer satisfaction and loyalty, every aspect of the business depends on how effective and productive the employees are. This becomes even more vital for growing enterprises that need to scale quickly to complete a project or launch a new product/service in the market. However, traditional recruitment processes are no longer suitable in modern times. Statistics show that businesses worldwide are facing talent shortages, irrespective of the industry. A report by ManpowerGroup indicated that almost 3/4th of the employers (74%) are struggling to hire the required talent to bridge the gap in their organizations. Around 63% of businesses admit that the skill gap is the primary challenge affecting their digital transformation journey. In such instances, CEOs cannot afford to rely only on traditional hiring methods to fill the gap. Opting for external team extension models is a better choice in many ways, as they offer quick results while limiting the expenses. Moreover, scaling a team with external talent enables organizations to gain a new perspective and adapt to change. In this blog, we’ll read more about the different types of external team extension models, their advantages, and why more and more businesses are switching to IT staffing solutions offered by third-party offshore companies. What is an External Team Extension Model? Team extension is a part of IT staff augmentation services, where enterprises augment in-house teams by onboarding external talent for specific roles. Instead of following the multiple steps involved in traditional recruiting, which is a slow process and expensive, the top management can directly onboard professionals on a contract basis to start working right away. Rather than build a new team from scratch, an existing team is extended by augmenting it with more experts from third-party service providers. Team Extension Vs. Outsourcing While enterprise team extension services are a part of the larger outsourcing umbrella, they are not the same. In outsourcing, the entire project is handed over to the service provider. In team extension, external talent is added to an internal team to work on the project within the organization. Team extension models offer more control and can be more cost-effective than outsourcing. They are a better choice for complex and sensitive projects that require high data security and diverse domain expertise. In recent years, team extension and its models have gained more popularity for being business-friendly and customer-centric in their approach. Moreover, IT resource augmentation services are easier to customize, as each team is tailored to the enterprise’s specific requirements. This also reduces expenses, as service providers take care of the paperwork and other HR-related responsibilities, such as payroll management. External Team Extension Models for Enterprise Scaling Project-based Model As the term suggests, a project-based model is one in which the in-house team is extended or augmented with external talent to work on a specific project. The professionals can be brought on board at any time, though it is recommended to do so in the early stages for better results. The sooner they are involved in the project, the more efficiently they can work on it. Moreover, in project-based models, the external talent can be replaced based on the roles and responsibilities. If the need for one role is over, the professional can be let go. Another role can be filled to continue the project in the next stage, and so on. There is no specific time limit for the project-based model as it is case sensitive. The pricing is also tailored for the project’s requirements. Time-based Model Another of the external team extension models is the one based on duration (hours, weeks, months, years). This is broadly classified into short-term and long-term. In the time-based model, you can easily scale the teams up or down by augmenting them with the right talent at the right time. There is no need for full-time hiring just to fill a role for a few weeks. Moreover, CIOs and CTOs can hire talent across all levels using the time-based model. For example, even factory workers can be hired temporarily when the enterprise has to increase production in a short duration. This model is also helpful when you want an expert to handle only a certain phase of the project and don’t need them to be with the team throughout. Skill-based Model The skill-based model is a popular part of IT staffing solutions, where external talent is hired to augment in-house teams based on their skills and domain expertise. Professionals are hired temporarily to fill the existing skill gap in the enterprise on short notice without committing to permanently recruiting them as a part of the establishment. Most organizations these days prefer skill-based hiring for complex roles, such as data engineering, AI and ML engineers, data scientists, business and data analysts, etc. The pricing for the skill-based model is higher as you augment teams with specialized expertise. That said, it is still cost-effective compared to permanently hiring them and allows greater access to the global talent pool. Offshore / Remote Model In today’s world, most enterprises opt for the offshore or remote team extension model, as it eliminates geographical limitations. You can augment your internal teams with experts from other countries for the required duration. Typically, offshore team extension brings greater flexibility while also being cost-effective, as you pay the local rates of the service provider. Though it requires a more strategic onboarding to handle the time zone and cultural challenges, the results can be greater and aligned with your objectives. Dedicated Teams Model Dedicated offshore teams for enterprises is another popular model where a group of experts is hired to work exclusively on a project. This is done for complex projects that require
Read More