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Software Outsourcing
Updated: Dec 12, 2024

Managed Team Model: Amplify Collaboration for Fuelling Real Revenue Growth

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With 9 years of industry expertise, Prachi's leadership skills to bridge the gap between technical and business requirements makes her a valuable asset at Radixweb.

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Managed Team Model for Revenue Growth

Summary: Outsourcing software services is one of the most widely used software development models used around the world. However, the kind of engagement a business should use depends on a lot of associated factors. Today we will explore the concept of managed team model and how it is pivoting businesses towards building deeper efficiencies.

The success of a software project is not just dependent on the kind of tech expertise you leverage. Often, it is also about the way you leverage this expertise, i.e. the team management model and how it delivers the outcome to your project.

Thriving a software project is critically reliant on the metrics of accountability and risk management. That is also a determinant in the kind of engagement model you choose for your business. Off all the popular software outsourcing models, the managed team model has been gaining huge popularity over the years.

This write up will serve as a guide on team extension through managed team outsourcing and the potential it holds for your business. Let’s dive in:

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On This Page
  1. What is a Managed Team Model?
  2. Outsourced Managed Team – What It Delivers
  3. Managed Outsourced Team vs A Dedicated Team
  4. The Need for Managed Services
  5. Benefits of Managed Team Model
  6. Managed Team Model – A New Horizon
  7. How Can Radixweb Help?

What is a Managed Team Model?

A managed team model comprises of a client and the IT outsourcing company, or the service provider. Businesses use it as a strategic approach in which they join hands with a software partner for a niche project.

Businesses that plan to work on highly tech-intensive projects have very niche requirements for resources with specific skill sets to achieve certain service and service goals. In case they can’t meet the requirements from the in-house team, the best for them is to get working with a service provider who can bring specific expertise onboard to meet these objectives. Both the stakeholders can sign an agreement based on the needs and the duration of service required by the business.

Rapidly growing tech-driven businesses that intend to significantly grow their ROI and expand into newer markets without incurring the expenses of having a huge in-house team mostly opt for this model.

What to Expect When You Outsource Managed Team?

The beauty of a managed capacity model is that it offers a wide and consistent talent pool trained in the agile development approach. These resources aren’t just adeptly trained across emerging technologies but also have all the necessary interdisciplinary skills to pivot a software project towards success.

But here’s the catch, the software partner isn’t responsible for setting team priorities or ensuring the team is moving towards desired results. The business is required to appoint a project manager who oversees the entire development process and ensures the highest productivity of the team across all stages of development. The business here, buys out man hours from the software provider at a pre-determined rate.

Most CTOs prefer hiring a managed team because in this case the business retains a certain level of management control on the team, can exercise constant vigilance and yet access a wide pool of expertise at an agreed upon cost on the terms of the business.

Fast-moving businesses prefer to outsource managed teams because of their ability to respond to critical project situations promptly and adapt as per the need of the hour. A managed team model enables scalability as per the requirement of a business. They can scale up and down as and when the company requires.

At this point you could be wondering if a managed team is similar to a dedicated development team model. Well, there are some similarities though, but they are largely different based on how these teams engage and respond to your business. Let’s quickly learn what their core differences are.

How Is a Managed Team Different from A Dedicated Development Team?

Business leaders and CTOs are often torn in the choice when it comes to choosing between a managed team and a dedicated software development team. While both these collaboration models offer distinct positives, you must make your choice based on your core business objective.

Managed Team vs Dedicated Team

Hiring a dedicated development team means having as an extension of your in-house team. Your software service provider offers you a team of specialists trained in your niche skill requirements, working dedicatedly for your project. This form of collaboration is best suited for long-term engagements and ongoing development projects where your team needs to have an in-depth realization of your software vision.

Businesses seeking a highly collaborative and focused environment with a diverse palette of development skills to meet the constantly evolving project needs are more likely to opt for a dedicated team.

A managed team model is a collaboration model where your software partner is given the charge of specific services or IT functions. These teams often work from a remote setup, which means they offer wider scalability regarding requirements and predictable pricing models. Over the years managed teams have emerged quite as a favorite for business leaders for their cost-effectiveness in getting a wide range of skills for managing IT operations without the need to have a huge in-house team.

Now that we have examined how different these two collaboration models are based on what they offer, I’ll give you some signs that a managed model is your best fit.

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Signs That You Need Managed Services

CTOs today are under insurgent pressure to deliver exception software performance, operational excellence and upbeat system security, but at competitive costs.

The primary signs of your business needing managed services are when you notice a considerable decline in the knowledge repository followed by compromised quality of IT services. And if you are nodding you head to most of these situations, you must know its time:

  • You had frequent instances of system outages and downtimes
  • You lost data due the solution’s lack of abilities
  • You overspent your budget on making tweaks to your business solutions but that led to further performance issues
  • You couldn’t achieve your goals due to lack of support

Over time, managed team models have evolved considerably to deliver wider benefits for businesses. Advanced managed team outsourcing is for businesses that:

  • Depend heavily on their IT infrastructure to support ongoing business processes
  • Have a lack of staff expertise when it comes to support, maintenance, updating and repairing solutions
  • Have budget limitations and prefer paying flat fees for software development services but want to retain high-level service quality

Given how the managed team model has evolved and matured due to the rise of cloud services and digitalization, there will be a need for in-house IT staff only in cases where there’s a deep operational sensitivity involved.

Let’s get back to exploring what benefits a managed team model can bring to your business.

What Are the Benefits of An Outsourced Managed Team?

Out of all team management models, the managed capacity one is a very efficient collaboration model for integrating higher efficiencies while maintaining cost margins. This model is a mix of human intelligence and automation tools to streamline and compete projects on-time, on-budget.

Managed Team Outsourcing Advantages

Higher Cost Effectivity:

A report by expertmarketresearch.com predicts that the global IT spending market would be around USD 5.29 trillion by 2032. Which means optimizing your operational costs in this market would lead you to higher revenues.

If we look at the cost components for an IT department, we’ll majorly find compensation for employees, equipment and infrastructural costs and expenses to conduct training. However, a managed team saves your money across all these parameters against a pre-determined fee for talent. This doesn’t just help in predicting costs but also leaves your business with the flexibility to scale as required.

Healthier Risk Management:

Risks are a part of every business. However, minimizing service risks is unique for every business. Using a managed team model ensures that you get the best of both worlds -advanced software infrastructure and proprietary methodologies.

A managed team with sound industry knowledge and in charge of specialized IT functions know how to maintain global compliance regulations and build deeper security encryptions against the evolving threat landscape.

Future-proofing IT:

Funding issues, technical challenges, operational hazards and security issues are a constant for IT departments. While you optimize your business spends, outsourcing a managed team takes off one burden from your shoulders – the need to achieve seamless service integration with skill gap issues.

A software service provider offering managed team hiring will always have a team that’s upskilled across diverse technologies, frameworks and tools. Getting into a contract with such a team for a specific period means you bring in more predictability of spending and cut down on operational risks during that period.

Building Higher Efficiencies:

Software downtimes are literally the silent killers for any business. Businesses that want to win the CX battle continuously need to be thoroughly available and efficient. The cost of downtime is hard to measure but its impact is undeniable because it is the reputation of your business that’s at stake.

Businesses that want to manage the overall IT services internally end of spending a lot on R&D(research and development) and often end up with tediously long deployment cycles.

A managed outsourced team trained to deal with several levels of tech complexities can manage syncing multiple technologies seamlessly to ensure that your end users experience minimal interruptions and maximum uptimes.

How Are Managed Team Models Emerging as Next-gen Strategies for Growth?

The brilliance of managed team models is in the way they synergize cost optimization and a practical service model for advanced efficiencies. It has slowly emerged as the most trusted strategy for building operational resilience and cost effectiveness from one fiscal year to another.

Irrespective of the size of your business, the managed services model works as a strategic edge in making your crucial resources avail and accommodative of core projects. In fact, the right outsourced managed team will be your vital asset in helping you handle critical client data and sensitive information.

Get help from a team of seasoned software experts at pre-determined, competitive rates for your development process.

Build Cost Efficiency

Radixweb for Managed Team OutsourcingTaking your business to the next level of efficiency calls for a certain level of expertise that Radixweb can equip your business. We house a team of 650+ experts trained in every emerging technology, framework, tool and delivering time-zone aligned services. As one of the most trusted outsourced software development providers for over two decades, we have over 3000+ businesses trust us for streamlined and transparent development processes and ability to come up with upbeat tech solutions.If you need a software partner to help you bring competencies for your next project at competitive rates, you can get in touch with us. Our experts come with a wide profile of tech competencies that can pivot your business towards the efficiency you need.

FAQs

How to know if a managed team model is right for my business?

What is the difference between staff augmentation, dedicated development team and managed team model?

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Prachi Palkhiwala

Prachi Palkhiwala

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About the Author

Prachi Palkhiwala is a skilled Software Maestro known for her expertise in Flutter, Scrum Master, Python, Data Analytics, Google Data Studio, and CircleCI. She holds a certification in CSM and has managed several complex projects and led teams to success. Her deep understanding of agile methodologies and data-driven decision-making enables her to optimize processes and drive continuous improvement.