Dedicated teams vs. blended teams: which collaboration model should you choose when outsourcing software development?

Successful software development depends on finding the right balance between speed, expertise, and collaboration. Organizations face the challenge of organizing their development capacity in an effective way. A key part of this involves choosing an appropriate collaboration model, such as a dedicated team or a blended team. This choice can significantly influence the outcome of a software project. Each model offers specific advantages and poses its own challenges, particularly in terms of knowledge sharing and flexibility. It is therefore important to carefully consider which approach best aligns with the goals, complexity, and context of your software development project.

Due to a shortage of sufficient in-house IT specialists, more and more organizations are choosing to outsource their software development. A popular form of this is nearshoring, where the work is outsourced to a development team in a nearby country, such as Romania. At NetRom Software, we distinguish between dedicated teams and blended teams in software development, each with its own characteristics and areas of application.

The choice between dedicated teams and blended teams is more than an operational decision, it is a strategic choice that directly impacts your project outcomes, cost efficiency, and long-term success. In this blog, we clearly outline the differences and key considerations, enabling you to make an informed decision about the collaboration model that best suits your organization’s software development.

What is a dedicated team?

A dedicated team consists entirely of highly skilled IT professionals from NetRom Software who work exclusively on a client’s project. This team functions as an extension of your organization and operates according to NetRom Software’s proven methodologies and quality standards, resulting in consistent and high-quality deliverables.

Because all team members focus on a single project, a dedicated team is characterized by a clear structure and unified focus. The team is assembled to include all necessary roles, from software engineers and testers to DevOps specialists and project managers. Work is carried out from our state-of-the-art NetRom Campus in Romania, an environment specifically optimized for dedicated teams.

What is a blended team?  

A blended team is a unique combination of internal and external expertise, in which IT specialists from NetRom Software work closely with the client’s own IT professionals. This hybrid model creates an environment where the domain knowledge and organization-specific expertise of internal staff are combined with the technical specialization and advanced development methodologies of NetRom Software.

The blended team is defined by an intensive mode of collaboration, in which the boundaries between internal and external team members become less distinct, fostering a shared focus on delivering a successful software project. In this model, NetRom Software’s IT specialists work not only for the client, but with the client, resulting in a more collaborative and interactive approach that encourages a culture of co-creation.

Comparison based on seven key factors

When considering the type of team (blended versus dedicated), making the right choice can be quite challenging. To simplify this decision, we will compare both collaboration models based on seven crucial factors.

1. Integration and alignment

• Dedicated teams have the freedom to organize processes according to their own insights, which is particularly effective for projects with clear boundaries and objectives. However, there is a risk that the development team may not fully adhere to your organizational standards if communication channels are not well established. Additionally, a knowledge gap can arise between the external team and your internal organization, potentially leading to misunderstandings or overlapping responsibilities.

• Blended teams ensure seamless integration with your organization by sharing company culture, tools, and workflows. This leads to natural adherence to your quality standards and internal procedures, with new team members becoming operational more quickly due to direct knowledge transfer. The success of this model depends on disciplined collaboration and clear communication, which can present additional challenges when working across multiple time zones.

2. Ownership and responsibility

• Dedicated teams operate with clearly defined responsibilities, where the external team assumes full ownership of the entire development process. This approach works well for projects with well-defined deliverables and prevents confusion about who is responsible for what. A potential risk is the emergence of a detached work attitude, where tasks are simply handed over to the team. Good communication and a clear understanding of the project are essential to avoid misunderstandings.

• Blended teams develop a shared responsibility for project outcomes, which typically results in strict quality control and smooth collaboration among team members. This collective involvement fosters a culture in which everyone feels personally accountable for the project’s success. For optimal performance, it is crucial to establish clear agreements on roles and responsibilities from the outset to prevent duplicated efforts or ambiguity.

3. Collaboration and communication

• Dedicated teams can work effectively remotely with high productivity, provided that clear agreements are made. To achieve success, thorough documentation and clear communication protocols are necessary to prevent misunderstandings and delayed feedback. Remote work carries an increased risk of miscommunication and requires detailed documentation of processes and decisions.

• Blended teams encourage intensive communication through daily coordination and agile working methods. This enables the development of strong working relationships, which significantly improves collaboration, especially in a nearshore environment. Through this close cooperation, challenges are identified early and can be addressed promptly. A key consideration is that this model relies heavily on direct interaction between team members. If this interaction is lost, the team’s progress may stall.

4. Scalability and flexibility

• Dedicated teams are highly suitable for rapidly deploying complete development teams and work best on projects with a fixed scope or when developing multiple functionalities simultaneously. This structured approach provides clarity and predictability but allows less room for interim changes in team composition.

• Blended teams enable organic growth by gradually adding new professionals to ongoing projects. The team composition can be adjusted smoothly as project requirements or market conditions change. However, this flexible model requires active involvement from the client in onboarding new team members.

5. Knowledge sharing and retention

• Dedicated teams acquire deep expertise during the project execution, which minimizes the workload for your own employees. The startup phase may initially take more time, and this model requires deliberate attention to prevent isolated knowledge silos and to facilitate knowledge sharing with the rest of the organization.

• Blended teams enable continuous knowledge exchange between the client and the external development partner, leading to shorter onboarding periods and shared expertise. This knowledge sharing strengthens both your internal capabilities and the effectiveness of the collaboration. One point of concern is that critical knowledge may reside with only a few team members; if these individuals leave, that knowledge leaves the team as well.

6. Control and visibility for the client

• Dedicated teams primarily focus on the end results rather than on work processes. Process insights are limited unless you request extensive interim reporting and implement monitoring solutions. There is a risk of misaligned expectations if project goals are not clearly defined at the outset.

• Blended teams offer extensive transparency and insight into daily progress, allowing you to make adjustments promptly where necessary. This high level of visibility builds trust and enables you to anticipate new developments. It is essential to establish clear role agreements to prevent transparency from turning into unwanted micromanagement.

7. Cost efficiency

• Dedicated teams can result in lower operational costs when the team operates fully independently within agreed frameworks. Success depends on avoiding communication issues that could lead to costly rework or failure to meet objectives.

• Blended teams often achieve higher productivity through improved coordination and reduce the risk of costly duplication through optimal collaboration. The investment in intensive cooperation leads to better efficiency and quality of delivery. Keep in mind that this model requires a significant time commitment from your own team leaders and project managers.

Crucial role of the Product Owner

in the process when working with a nearshore software developer. In the case of a dedicated development team, the Product Owner acts as the bridge between business and technology. They ensure product consistency and make sure the nearshore team works efficiently and purposefully, despite geographical and organizational distance.

In a blended development team, the Product Owner is responsible for alignment among all team members, safeguarding the product vision, and translating business goals into clear priorities. In both scenarios, the Product Owner is the key to success, as they provide context, make the right decisions, and prevent teams from deviating from the strategic direction.

What is the best choice?

For well-defined, modular projects, dedicated teams can deliver results faster with less daily involvement from your side, provided the scope and development criteria are clearly defined. This model offers a clear delineation of responsibilities and can be highly efficient for specific tasks.

For long-term, strategic partnerships, complex product development, or joint innovation, blended teams are better suited due to their deep integration and transparency. They encourage shared ownership and continuous knowledge transfer, resulting in more robust and better-integrated software solutions.

NetRom’s approach: flexibility and customization

Our approach always begins with a thorough analysis (an audit) of the specific needs, objectives, and unique context of each client. We take the time to understand not only the technical requirements but also the organizational culture, available internal resources, and strategic goals. Based on this in-depth analysis, we advise on the most effective team composition and project methodology.

What sets our approach apart is the agile flexibility to adjust the team composition during the project lifecycle when needed. For example, a project may start with a dedicated team for the initial development phase and later evolve into a blended team model for implementation and knowledge retention. This adaptive approach ensures that we always apply the optimal team composition for each project phase.

At NetRom Software, our fundamental belief is that every project is unique and requires a tailored approach. Our more than 25 years of experience in nearshore software development has taught us that a one-size-fits-all solution rarely suffices for the complex technological challenges organizations face today.

Our NetRom Campus in Romania is a crucial pillar in the success of both collaboration models. With more than 500 highly skilled IT professionals, we have a broad talent pool with deep expertise in various technologies and domains. This scale enables us to quickly assemble teams with precisely the right combination of skills and experience, perfectly aligned with the project requirements.

Would you like to know what your ideal development team looks like?

At NetRom Software, we believe that creating the optimal team structure is crucial to achieving your ambitions. Our extensive expertise enables us to work closely with you to determine which model – or strategic combination thereof – will be most effective for your unique context.

Are you ready to discover which team model best aligns with your organizational goals and IT strategy? Contact us for an in-depth conversation. We are happy to analyze your specific situation and explore how NetRom Software can transform your IT ambitions into successful, scalable solutions. Our experienced consultants are ready to advise you on the optimal collaboration model for your project needs. Together, we build future-proof software solutions for your organization.