An extended development team model has become very popular worldwide. It is not project-based and is not discontinued after the project ends. It is ongoing cooperation between the core team and the offshore team.

On the other hand, outsourcing is an agreement between two or more companies to be responsible for a planned or existing project that is or could be done internally and sometimes involves transferring employees and assets from one firm to another. 

In the previous blog, we discussed the Extended Development team and its benefits. Today, in this article, CloudVandana will discuss the differences between an extended development team and outsourcing. 

The extended model is a solution that merges both in-house developers and remote developers to provide cooperation and high-quality product. Previously, most of the technical tasks were delivered by the in-house developers, but in many situations, they failed to meet the unique requirements and skillsets of the new projects. 

Hiring an extended team model can provide a high level of expertise cost-effectively. In addition, experienced developers are becoming more interested in working for companies worldwide, so they are always ready to deliver their best to enhance the product. 

Outsourcing is an effective strategy to hire a team of software developers from different countries to work on the same project. Outsourcing is also a cost-effective solution for organizations that do not have the in-house technical talent to fulfill specific business needs. 

Difference Between An Extended Team And Outsourcing

Though there are no such remarkable differences between the two hiring models, let’s look at some of the slight differences between the two models. 


Scalability is the most crucial feature of the remote hiring process. Suppose the organizations are not sure about the performance of the outsourced developers. They can start the project with fewer developers and then increase the number of resources depending on the project’s needs. Organizations generally discontinue the contract with the staffing agency after the project deployment.

An extended team generally cooperates with the in-house team to complete a project efficiently, and their contracts are continued even after the completion of the projects.


Organizations directly manage the hiring and onboarding process for the extended development team model. As a long-term contract is created, the extended team becomes part of the team. Organizations can directly control the team and the internal process to monitor expenses and workflow for better coordination among the team members. This helps them to get a transparent view of the work process. 

For outsourcing, organizations can create a contract with a staff augmentation firm for on-demand resources as per the project needs. The contract can e long-term or short-term, depending on the size of the project. Though the staff augmentation firm takes all the responsibility for hiring and training, the organization can still manage the developers as per their work process. Moreover, the remote developers always inform the organization about the procedure and development in every project stage. So transparency is always maintained. 

So we can see that being a little different from each other, clear transparency is maintained in both models.


In an extended team model, the relocated team works directly under the organization’s management. While the organization manages the team, the provider company deals with all legal documentation and other necessary issues for a seamless hiring experience. 

On the other hand hand, outsourced teams work remotely. The provider company mainly manages the team, but the outsourced team works as per the organization’s direction for which they are working. In addition, they work as per the timezone of that organization for better coordination with the in-house team.

Huge Talent Pool

Clients can experience a broad talent pool for both hiring models. Developers’ dedication and expertise are exceptionally high. Developers do not just deploy the product, but they also keep themselves engaged with the products to overcome any future challenges. 

As they are selected as per their skills for specific business requirements, the outcome always meets the expectation. 


Organizations can choose an extended development team for a cost-effective solution and hire offshore from countries with better prices. In addition, the hiring process is scalable, so an organization can create a contract with the provider company as per the project requirement and discontinue it after the completion of the projects. 

The contract for an extended development team is generally long-term, whereas a short-term contract is created for an outsourced team.

Are you looking for an outsourced or extended development team to enhance your project and deploy it within the allotted time? Please select the best team of developers from the considerable talent pool of CloudVandana as we have launched Developers as a service.’ Please schedule a call with us today, and share your requirements. Call Now!

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