Custom Software Development Services: Most Popular Collaboration Models

Custom software development services may vary from hiring a single developer to buying an end to end solution. The most popular collaboration models are:

Which model suits you best?

If you’re not sure, consider your project requirements and what your business needs first. Then choose the best working model for your company by following our comprehensive guide below!

You’re free to jump right to the selection of Engenious custom software development services!

Body Leasing / Team Leasing

One of the most popular models is body leasing, which temporarily allows you to hire a group of employees. Team/Body Leasing is becoming increasingly common in organizations that need to build new teams quickly.

It is a form of outsourcing where the software company acts as the intermediary between your company and the development team. The client is renting the developer’s body for an agreed-upon period. The customer pays for the services rendered by the developer’s body. At the end of that period, the developer’s body returns to the software development company.

You don’t need to hire a permanent employee for your company. Instead, the software developer pays them directly through their employer’s payroll system. This model operates on a commission basis. You pay only for services delivered by developers while working on your project.

The model is used by companies when they are looking for developers who would meet specific project requirements but don’t want to lead the programming process.

This cooperation model is for you if you are looking for a software developer to complete your project and don’t want to manage them. It allows for a flexible approach to outsourcing, is cost-effective, and allows you to hire the best developers.


Body leasing is probably the fastest hiring option, making it an excellent advantage for big, medium, and sometimes even smaller companies. A software company usually employs skilled recruitment specialists who can quickly choose many interested candidates. Software development companies have a large pool of experts. So, they can quickly move team members between clients and projects.


However, there can be some drawbacks to this approach. For example, your “leased” employees might not identify as part of the team as they would at an in-house position which may result in a lack of motivation. But experienced service providers have processes in place to help ensure that their developers become an integral part of the team.


In conclusion, body leasing is an excellent option for companies that are looking for software developers. They can quickly hire someone with all the necessary skills without worrying about recruiting. If your company works on complex projects and hiring the right employees is a struggle, you might want to consider this option.

Team Extension and Dedicated Team as Custom Software Development Services

All too often, software development projects require more resources than initially anticipated. In some cases, companies decide to bring in new team members from outside sources to help complete the project. There are two different models for that – “team extensions” and “dedicated teams.” Here’s a summary of what they are:

What is a Team Extension?

A team extension is a group of developers who work full-time exclusively for one client. They are hired by the software company rather than by the client. The extended team model helps to address the problem of insufficient manpower. It allows for providing quality services with a minimum delay. Tech leadership and project management remain on the client side. It means that they can benefit from their vast experience in project management, architecture, and development processes.

What is a Dedicated Team?

The Dedicated Team model is very much like the Team extension model. It is based on setting up a more autonomous team of developers. They will work closely together day-to-day, and the development agency is responsible for the project planning, estimation, and management. They’ll likely have more freedom and autonomy than any other option on this list.

Both these software development models have their agency take care of employment issues. Benefits, office space, hardware, holiday leaves, work tools, professional development, well-being, and team building are handled by the agency.


If you’re looking to expand your team with an experienced developer, this is a suitable model for you. You will have access to someone who can work remotely and help you extend your current team. Hiring a full-time employee can be difficult for small businesses with limited budgets. However, partnering with a software development agency is a great way to get more out of your budget. You won’t have to compromise the quality or efficiency.


Remote work can pose challenges. Nevertheless, experienced providers have processes in place to streamline communication and keep all the project stakeholders in the loop.


Team extension and Dedicated Team models are most suitable for mid and long-term projects. If you need to hire dedicated developers to work closely with your in-house team, and the cost is a factor, this is a great solution.

Project Teams as Custom Software Development Services

Project Teams model is a trendy model that many companies use these days. It allows companies to outsource projects to specialized teams instead of hiring full-time employees. There are many reasons businesses would want this type of setup these days. They might need someone else to manage their IT infrastructure while focusing on other aspects of their business. Companies could use extra help with development, or maybe they just don’t have time for everything themselves!

A team works toward a goal within a specified time and budget with project-based cooperation.

You can assign a project to an agency based on their skills and capabilities. For example, if you need a software developer proficient in iOS, you can search for agencies specializing in these areas.

With this approach, you’ll be able to manage your team’s workflow better. It will ensure that each product delivers maximum value to your company and its customers. It also means building out specific applications that meet their needs exactly.

When you know what you want, you can assign the task to a software development agency with multiple competencies.

It’s important to understand that hiring an agency is like hiring any other employee. Their performance depends on how well you manage them. If your agency’s portfolio is primarily web-focused and has no track record of developing mobile apps, you should look for another agency.

So it’s essential to start by knowing exactly what type of work you have to do. Identify features that should be included in the product once it launches. Then proceed with finding an agency whose competencies match those requirements.


The company’s experience working with other companies on similar solutions will add value to the project. Unlike other providers, it offers on-demand availability and access to a range of particular competencies, product development, UX/UI design, web or mobile development, IT consulting, and other parts of the software development process.


The biggest drawback of this working model is its price, as it’s often higher than other solutions. However, there’s a reason for that: since the software development company carries out the project alone, it generates more costs. The provider has to engage more developers without settling into long-term cooperation, which might be pricey.


A project-based model is an excellent option for small projects. If you’re looking for flexibility in choosing partners, broad technology competencies, and specialization, then this model help. This solution is viable if you don’t have your internal IT teams, and outsourcing is the only option.

Managed Delivery

Like Project Teams, Managed Service Delivery models are used by companies that need to outsource their IT operations but don’t want to make a long-term commitment. Managed service providers (MSPs) offer long-term support for your IT systems and round-the-clock monitoring, reporting, and resolution services. They take the burden of managing your IT infrastructure off your shoulders and allow you to focus on what you do best. MSPs are also great for companies that don’t want to invest in their IT staff because they can be expensive.

You pay a monthly fee for the service and get access to an MSP’s team of IT professionals. Many managed service providers support various technologies, including cloud computing and collaboration tools.

The MSP will typically provide a service level agreement (SLA) that guarantees the availability of your IT systems. This is useful for companies that don’t have much experience managing their own IT infrastructure or want to outsource it entirely.


Managed delivery custom software development services providers ensure that your organization maintains its technological edge. By maintaining a constant eye on the newest developments, MSPs help ensure that your organization can take advantage of new innovations.


Providers may have little incentive to take on additional management duties. The client and provider organizations may have different cultures, leading to miscommunication or a breakdown of collaboration between the two, which can affect outputs or deliverables.

In addition, the provider may not be able to meet the needs of your business. You must choose a partner with experience in your industry and who understands your company’s goals and challenges.


MSPs are perfect for companies that require some IT services but don’t want to invest in recruiting their own team.

MSPs offer a wide range of support options, including monitoring and management services. Moreover, they can provide guidance on system upgrades and new technologies.

Which model suits you best?

Many factors affect your choice of the best cooperation model. Your budget and level of engagement in product development management are also significant considerations.

Considering factors like the deadline and resources when developing a new product is very important, inevitable trade-offs may affect its security. Some development models focus more on security during planning and implementation to mitigate these risks.

Engenious Custom Software Development Services

At Engenious, we are dedicated to helping you choose the best working model for your business. You can start with an audit of your business and come up with solutions that are tailored to your needs. We will develop a plan that helps you get your business off the ground, grow your revenue, and achieve your goals. Together we will build a profitable, scalable, and sustainable business.

We offer the following services: 

Team Extension – Our Senior Engineers and QA Managers are under your full control to deliver the best product.

Release Automation Team – a form of team extension where our SDETs and dedicated project manager work together with your team on your release processes.

Managed Delivery Our desiccated project manager, backend and frontend devs, and QA managers deliver timely results on an agreed budget.

Moreover, if you are in the early stages of your business and need help getting it off the ground, we can create a Proof of Concept (POC) to demonstrate the feasibility of some concept or theory.

If you are interested in how we have streamlined our clients’ processes, check out our case studies or click here to find out how we can help you achieve your business goals.

July 25, 2022

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