The Power of Blended Teams: Co-creation in Software Development Outsourcing 

As businesses strive to keep up with the fast-paced demands of digital innovation, the traditional approach to software development is undergoing a transformation. One model that has emerged as particularly powerful in today’s complex and ever-evolving technological landscape is the model of blended teams.

The blended team approach seamlessly integrates your internal development team with external developers from an outsourcing partner. Unlike other models of outsourcing, such as full end-to-end product-oriented delivery or staff augmentation, blended teams strike a perfect balance between flexibility, control, and collaboration. Let’s look at blended teams a little more closely.      

Why blended teams stand out

The blended team model is more than just a practical solution for scaling resources; it represents a significant shift in how businesses think about software development. Rather than seeing outsourced development as a separate entity, blended teams create a symbiotic relationship where the outsourcing partner complements and strengthens internal efforts. It is a model that fosters continuous knowledge exchange. This ensures that both in-house and external developers work together toward the same objectives, while allowing you to retain strategic oversight. 

Let’s dive deeper into why blended teams should be a preferred approach for you as a IT decision-maker and how they help you stay agile and innovative. What are the key factors that make the blended teams approach such a powerful way of working in complex technological circumstances? 

Bridging the gap between control and flexibility 

One of the most challenging aspects of IT outsourcing is finding the right balance between maintaining control and gaining flexibility. Blended teams allow you to keep your finger on the pulse of the project, retaining product ownership (PO) and control over key decision-making processes. At the same time, by outsourcing part of the team, you can flexibly scale resources up or down according to project demands. 

This balance is crucial in industries that face rapid market changes or shifts in customer needs. With blended teams, you can quickly adjust the size and expertise of the development team without having to go through the lengthy processes of recruiting, onboarding, or offboarding full-time employees. 

Collaborative synergy: internal expertise meets external innovation 

In a dedicated team model the partner provides a full, self-sufficient development team, including roles such as developers and testers. The product owner (PO) typically sits on the client side. The team is entirely focused on the client’s projects and operates as an extension of the client’s organization, but remains functionally managed by the client’s product owner. The blended team model offers something unique: the fusion of internal strategic insights with external operational excellence. Internal teams bring a deep understanding of the company’s domain, values, and long-term objectives. Outsourced teams introduce a fresh perspective, technical skills, and industry best practices. This combination of internal knowledge and external innovation can unlock faster, higher-quality results than either team could achieve alone. 

Reducing HR and management burden to maximize your strategic focus  

The outsourcing partner is responsible for managing their portion of the team, including quality control and technical direction. Additionally, the outsourcing partner handles the HR and employee handovers within the external teams. This allows you to focus on high-level strategy without being bogged down by the minutiae of everyday development tasks. This is where blended teams shine, as they provide a streamlined approach to development that fosters innovation without losing sight of the broader business goals. 

Enhanced knowledge transfer for long term value 

One of the standout features of blended teams is their ability to facilitate effective and efficient knowledge transfer. In full outsourcing models knowledge about specific product components may remain siloed within the partner’s team. Blended teams work closely with in-house developers, fostering a continuous exchange of information and best practices automatically leading to the transfer of knowledge. 

This knowledge transfer is critical in the software development life cycle, especially when projects evolve or internal team members change. By ensuring that your in-house and outsourced teams collaborate on every step of the project, you minimize the risk of information bottlenecks or knowledge gaps. This ensures a smoother development process and easier handoffs. Over time, this collaborative environment also helps the outsourced team become deeply familiar with the company’s culture, technical stack, and business objectives, leading to a more seamless partnership. 

Mitigating common challenges

While the blended team model offers substantial benefits, it is not without its challenges. You may worry about disparities in development velocity between internal and external teams due to differences in processes, communication styles, or time zones. However, these potential pitfalls can be mitigated through clear communication, well-defined workflows, and regular synchronization between both teams.  

Additionally, working with a nearshore outsourcing partner can significantly reduce concerns around time zones or cultural misalignment. Nearshoring offers the benefit of shared or similar time zones, making it easier to collaborate in real-time. This ensures that development velocity remains consistent across both teams. 

Blended teams: A catalyst for long-term innovation

Blended teams aren’t just a short-term solution for scaling software development resources – they are a catalyst for long-term innovation. By strengthening your teams with external expertise, you can stay ahead of technological advancements and industry trends without losing focus on your core competencies. As blended teams become more deeply integrated into your organization, they also act as a driving force for continuous improvement, helping you optimize your development processes and adapt to new challenges more quickly. 

In today’s fast-moving market, where the ability to innovate quickly is often the key to competitive advantage, the blended team model offers a unique and effective approach to software development outsourcing.  Leveraging the combined strengths of internal and external teams, you are able to 

• accelerate development timelines 

• improve product quality 

• enhance operational efficiency 

• all while maintaining control over your strategic direction. 

Innovate faster, smarter and more cost-effectively with blended teams

As digital transformation continues to reshape industries, you must find ways to innovate faster, smarter, and more cost-effectively. The blended team model presents a compelling case for organizations that want to scale their software development efforts while maintaining control over strategy and ensuring quality. It is a model that offers the best of both worlds: the flexibility and scalability of outsourcing, combined with the strategic oversight and collaborative synergy of in-house development. 

For IT decision-makers like you, looking to build a future-proof, agile development strategy, blended teams offer an ideal solution. This model not only reduces the risks associated with traditional outsourcing but also acts as a powerful enabler of long-term growth and innovation. By embracing blended teams, you can ensure that you are not only keeping pace with the competition but staying ahead of the curve. 

Do you want to see what this looks like in practice? Alpina, one of the Netherlands’ largest insurance proxy and advisory companies, approaches software development outsourcing in a blended teams model. Discover how their blended teams approach has enabled them to scale up their IT innovation incredibly fast.

Read the full article:
Alpina’s collaboration with NetRom in a blended team model

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