Dedicated Team vs. Extended Team: What’s the difference?

Published on: April 01, 2022
Last updated: January 30, 2023 Read in fullscreen view

Recommended for you

07 Jul 2024 Top Fintech Companies in Vietnam Driving Innovation Across Digital Banking & Investment 92/186
20 Jan 2022 Difference between Bug, Defect, Error, Fault & Failure 80/1403
17 Oct 2022 What is the difference between low-end, mid-end and high-end solutions of project management software? 74/1523
17 Mar 2026 How Much Does it Cost to Build an AI Agent in 2026 73/121
19 Oct 2021 Software development life cycles 67/741
03 Aug 2022 What Are OLAs? SLAs vs OLAs vs UCs: What’s The Difference? 65/1118
07 Dec 2021 What's the difference between soft freeze, hard freeze and customization freeze? 61/1304
05 Mar 2026 Top 7 Full-Cycle Web App Development Companies for Your Business in 2026 60/71
15 Aug 2024 Digital Governance vs IT Governance: What’s the Difference and Why It Matters 59/120
08 Oct 2024 Vietnam: The Rising Star in Global Outsourcing – Trends and Costs for 2025 59/412
21 Aug 2025 Top 30 Oldest IT Outsourcing Companies in Vietnam 59/162
17 Mar 2026 Top 10 Product Development Companies in Chennai 2026 (Updated) 58/65
13 Oct 2021 Outsourcing Software Development: MVP, Proof of Concept (POC) and Prototyping. Which is better? 56/515
06 Feb 2026 How Much Does a CPA Cost for a Small Business? 55/64
02 Feb 2026 What Is the Total Cost of Web Development for Small & Medium Businesses? 54/74
12 May 2021 The Real Cost Between Outsourcing IT vs In-House: A Quick Comparison 53/488
31 Aug 2022 What are the best practices for software contract negotiations? 53/309
11 Mar 2026 OEM, ODM, and OBM in Software Development: Choosing the Right Growth Path 51/58
24 Nov 2025 Top Blockchain Companies in Vietnam 50/93
12 Oct 2022 14 Common Reasons Software Projects Fail (And How To Avoid Them) 50/603
11 Mar 2024 Why You Should Hire Odoo Developers from Vietnam to Customize Your ERP System 49/153
09 Sep 2022 Close Collaboration and Communication Can Overcome the Challenges of Distributed Teams 47/246
03 Oct 2020 Outsourcing Your MVP Development - Streamlined Solutions for future 45/466
10 Apr 2022 Difference Between Forward and Backward Reasoning in AI 44/1737
05 Jan 2022 What Outsourcing Engagement Model is Right For You? 44/354
02 May 2022 Difference between CapEx vs. OpEx: Two Ways to Finance Your Software Project 41/1584
24 Nov 2021 What is the Actual Cost of Hiring Cheap Developers? 41/425
12 Dec 2021 Zero Sum Games Agile vs. Waterfall Project Management Methods 39/446
15 Oct 2022 Project-based team model for one-off and pilot software development projects 39/846
21 Oct 2021 Advantages and Disadvantages of IT Outsourcing 39/387
21 Jun 2022 Difference between Quality and Grade 39/851
18 Oct 2024 IT Governance, IT Management and IT Outsourcing: What’s the Difference? 38/90
04 Apr 2024 Unlock Vietnamese-Japanese outsourcing potential 38/267
05 Aug 2025 Why Doesn’t South Korea Outsource Its IT Projects Like Other Developed Countries? 37/130
05 Sep 2023 The Cold Start Problem: How to Start and Scale Network Effects 35/224
25 Jan 2022 What is the difference between Outsourcing and Outstaffing? 35/375
01 Jan 2023 4 New IT Outsourcing Pricing Models to consider in 2023 35/397
19 Oct 2020 The hidden costs of outsourcing software development 35/489
04 Oct 2021 Product Validation: The Key to Developing the Best Product Possible 34/337
19 Mar 2021 Selective Outsourcing of IT Functions - a new trend in business outsourcing 34/576
07 Oct 2025 Case Study: Using the “Messaging House” Framework to Build a Digital Transformation Roadmap 34/106
03 Nov 2022 Top questions and answers you must know before ask for software outsourcing 33/315
01 Mar 2022 Top 5 reasons why outsourcing to Vietnam is a smart move 33/312
28 Jul 2022 POC, Prototypes, Pilots and MVP: What Are the Differences? 32/746
03 Jan 2023 IT Outsourcing Costs: Is outsourcing really cost-effective? 32/237
28 Oct 2022 Expect the unexpected in 2023 - How Outsourcing Can Help? 32/232
31 Oct 2025 The True ROI of Software Development Outsourcing for Tech Startups 32/107
03 Dec 2025 IT Outsourcing Solutions Explained: What, How, Why, When 32/57
16 Oct 2024 Building a Software Outsourcing Startup: Strategy Through Two Canvases 32/64
15 Aug 2023 Production-Ready vs Feature-Complete: What’s the Difference? 32/269
16 Dec 2021 Why outsource Python development of your project? 31/515
02 Nov 2021 Difference between an ESTIMATE and a QUOTE 30/382
01 Jun 2025 10 Sustainable & Unique IT Outsourcing Companies in Vietnam 30/106
07 Nov 2024 Outsourcing Crisis Looming: Will Trump's Policies Transform the Global IT Landscape? 29/200
06 Jun 2024 Software Upgrade vs Software Update: What is the difference? 29/276
11 Mar 2023 Common Pain Points in Software Development Outsourcing 29/281
04 Oct 2022 Which ERP implementation strategy is right for your business? 29/347
12 Jan 2023 Top 10 Trustworthy IT Outsourcing Companies in Vietnam 29/307
01 Sep 2019 Outsourcing Software To Vietnam: Facts, benefits and limitations 29/476
22 Mar 2022 8 Mistakes Marketing Agencies or Consulting Firms Make When Outsourcing Web Development 29/368
15 Aug 2021 TIGO Rate Formula - Things the partners should know 29/520
28 Oct 2022 Build Operate Transfer (B.O.T) Model in Software Outsourcing 28/424
05 Mar 2021 How do you minimize risks when you outsource software development? 28/349
03 Nov 2021 7 phases of Odoo Implementation and Development: Can they be outsourced? 28/435
01 Jan 2024 Software Outsourcing Questions for 2024 27/176
13 Oct 2021 Why Outsourcing Software Development Services Is Gaining Traction With Non-Technical Leaders? 27/337
14 Dec 2021 The Top 10 Problems with Outsourcing Implementation and How to Solve Them 27/420
09 Jan 2021 How can outsourcing enable business agility? 27/216
10 May 2021 What are things you should look for in a good IT outsourcing company? 27/457
02 Mar 2021 Estimate the Cost of Software Development 27/362
01 Jan 2023 Why is Vietnam the Top IT Outsourcing Destination of 2023? 26/261
01 Oct 2022 Vietnam is a favorite supply of IT outsourcing services to Japan 26/260
09 Dec 2021 Customer Service vs Technical Support: What’s The Difference? 26/329
01 Jan 2023 Software Development Outsourcing Trends to Watch Out for in 2023 25/341
18 Jul 2021 How To Ramp Up An Offshore Software Development Team Quickly 25/609
01 Dec 2023 Laws of Project Management 25/332
16 Feb 2026 Education App Development Cost in 2026: Benchmarks and Key Cost Drivers 25/56
01 Jan 2024 12 reasons for software development outsourcing 24/197
10 May 2021 Project Audit and Second Opinion Services 24/268
04 Jan 2021 VIETNAM AS A BIG ATTRACTIVE DESTINATION IN THE FIELD OF OUTSOURCING 24/333
05 May 2022 DAM vs. CMS: What's the difference? 23/509
06 Mar 2024 [SemRush] What Are LSI Keywords & Why They Don‘t Matter 23/204
15 Sep 2022 CRM vs CDP: What's the difference? 22/294
24 Nov 2021 What is the difference between off-the-shelf software and customized software? 22/465
01 Jan 2023 Top 5 IT outsourcing countries in 2023 22/290
13 Jan 2023 What are the Hourly Rates in Offshore Software Development? 22/257
06 Oct 2021 Intellectual property issues with outsourcing software development 22/403
02 May 2021 Outsourcing Software Development: Avoid 8 Mistakes 22/128
21 Aug 2022 Forbes: IT Outsourcing Hotspot: Vietnam, A Small But Mighty Powerhouse 21/273
25 Nov 2021 Low-Cost Software Development: Buy Nice or Buy Twice? 21/360
15 Nov 2023 IT Staff Augmentation Types and the Best Choice for Your Business 21/212
01 Apr 2021 IT Outsourcing to vietnam: Why It Is A Good Choice? 21/314
01 Feb 2022 Outstaffing Vs. Outsourcing: What’s The Difference? 21/606
01 Jan 2024 Tech Partnerships: Choosing the Right Software Outsourcing Firm in Vietnam 21/192
01 Feb 2023 [InfoWorld] Is your outsourcer agile enough? 21/213
01 May 2023 Streamline Your Business with Outsourcing 21/216
25 Sep 2025 A Practical Guide to Secure Online Work for Outsourced Teams 21/109
01 Jan 2023 Top Software Development Challenges in 2023 20/325
08 Aug 2021 Why Nearshore Software Development is better than In-House Development? 20/211
17 Oct 2020 How Outsourcing can Improve Time Management for Better Business 20/290
16 Mar 2021 Outsource Data Engineering Services - TIGO Streamlined Solutions 20/267
08 Feb 2022 Software Development: Fixed Cost or Opportunity Cost? 19/479
18 Mar 2022 Difference between Project Management and Management Consulting 19/370
10 Jan 2024 Facts Chart: Reasons for outsourcing 18/168
12 Aug 2024 Understanding Google Analytics in Mumbai: A Beginner's Guide 18/111
17 Jan 2024 What are the benefits and challenges of using multi-sourcing or single-sourcing strategies? 17/206
10 Mar 2021 The 7 Biggest Mistakes to Avoid Before Outsourcing a Web Development Project 17/249
10 Nov 2021 PoC vs. Prototype vs. MVP: What’s the difference? 16/834
02 Nov 2023 What are the pros and cons of iIT outsourcing? 16/203
01 Jan 2024 Hiring Tech Talents in Asia: An Overview of Skills, Costs, and Potential 16/174
08 Jan 2024 Outsourcing on an As-Needed Basis 16/174
01 May 2024 Warren Buffett’s Golden Rule for Digital Transformation: Avoiding Tech Overload 16/220
21 Oct 2022 Outsourcing Billable Rate 15/279
12 Oct 2021 Vietnam outsourcing path - the silk road connecting ASEAN with the developed countries (EU, US, Japan...) 15/314
01 Jan 2024 What The World Is Flat Means to IT Outsourcing 13/179
31 Dec 2021 Outsourcing Software Development to mitigate the impact of COVID-19 7/326

Before you decide on whether onshoring, offshoring or nearshoring is right for your project needs, you should consider the type of team you need first. In the world of software outsourcing, there are two main types of teams: dedicated and extended.

Read On:
What is DEDICATED TEAM?
How much does it cost to hire a dedicated development team at TIGO?

What is a Dedicated Team?

A dedicated team is a type of work-model that involves an agreement between a business and a service provider. The provider provides a team of software engineers solely dedicated to work on the tasks or projects of the business for an extended period of time. A company would hire a dedicated team for complex projects that are costly, high-volume and would require a long-term development timeline. Due the complexity of the project, the company should have a solid objective and properly planned workload ready for the programmers.

Pros

Direct management and oversight – an in-house project manager or one associated with the service provider works with the team
Specificity and Full-time Commitment – each member of the team is selected based on the needs of the project and are fully dedicated to client
Security and Cohesiveness
Flexibility
Ease of scalability and reduced cost

Cons

Incremental management – required for overseeing/communicating with the remote team
Not well-suited for short-term projects
Culture or language barriers

What is an Extended Team?

An extended team is essentially an extension of an in-house team that usually takes on non-core IT components. This is a partnership where responsibilities are shared between onshore and offshore teams creating more transparency. A company would use an extended team to assist in finishing a project already started by the in-house team or to help with a growing backlog.

Pros

In-House Team Can Prioritize – smaller projects are delegated out to the extended team
Complete Immersion – the extended team can assist in the process of a larger scale project as a whole, not just an isolated part
Constant and Direct Contact – Not just on an “as needed” basis
Ease of scalability and reduced cost

Cons

Culture or language barriers
Core changes could disrupt or impede extended team objectives
Incremental management – required for overseeing/communicating with the remote team

Are you working on an MVP with your in-house team and need an extended team to get you to launch? Do you need a completely dedicated team from conception to completion? Perhaps, you need a mixture of both. Working with a recruiting agency that understands the challenges of team selection in order to build the right team for your project is paramount. You don’t want to waste time and money on going in cold.

Best Practices for choosing dedicated team versus extended team

Building a dedicated team in another country is a big step. Your desire to be confident you really need this type of cooperation is natural. In order to decide, you can start by defining the type of project you are working on right now. If it’s a large, long-term project with a variety of tasks and an unchanging need for high-quality deliverables, then a dedicated team model is the right choice for you. On the other hand, if you have a small, time-limited project with a known deadline and predetermined resources, then you should opt for another cooperation model like Software Solutions.

A dedicated team model is more like outsourcing a core function (in this case, creating an app) to a third party. On the other hand, extended teams are an example of outstaffing or hiring outsiders to perform in-house tasks.

Another question to consider is your project’s budget. Having a limited, strictly-planned budget usually means a dedicated team model is not your cup of tea. We’ve prepared this simple checklist to help you perform a preliminary screening of whether you need a DT model or not:

Dedicated vs extended

Managing a distributed team requires wisdom in leadership and dedication—not only from the team’s side but also the client’s. If you’re ready to communicate and bridge physical distances, you will be rewarded with a new source of inspiration and productivity while adding an additional layer of business optimization.

A A A A

[{"displaySettingInfo":"[{\"isFullLayout\":false,\"layoutWidthRatio\":\"\",\"isFaqLayout\":false,\"isIncludedCaption\":false,\"faqLayoutTheme\":\"1\",\"isSliderLayout\":false}]"},{"articleSourceInfo":"[{\"sourceName\":\"\",\"sourceValue\":\"\"}]"},{"privacyInfo":"[{\"isOutsideVietnam\":false}]"},{"tocInfo":"[{\"isEnabledTOC\":false,\"isAutoNumbering\":false,\"isShowKeyHeadingWithIcon\":false}]"}]

Via

{content}