How Is Managed Team Model Fueling Innovation and Growth?

How Is Managed Team Model Fueling Innovation and Growth?

Companies must be prepared with the apt strategies and innovations to acclimate and overcome the challenges of change. Stagnation is not something to be taken lightly. It can turn out to be detrimental to business growth and success. Innovation is the only cornerstone that offers new possibilities and opportunities while fostering competitive advantage in today’s highly competitive market. It significantly allows businesses to strive and thrive in the market exponentially.

Innovation leads to a quick and effective market penetration that improves growth, primarily in developing markets. For some, innovation is a change that might feed into insecurity in taking risks. However, a proactive and confident attitude toward risk will help businesses get things done more productively. Tried and tested methods are easy to implement and fall back to, but novel experiments are what will set businesses apart and make the entire process worthwhile.

Managed team model is a great way forward to fuel innovation and growth. These teams can significantly assist in implementing small innovations that efficiently and seamlessly add to the bigger picture of a company’s vision and goals. Let’s have a deeper insight into what managed team model is and why businesses should implement it.

How does a managed team model work?

Two elements collaborate or partner to successfully enforce a managed team model. The first element is a client or a company that wants to employ external professionals (developers, designers, architects, testers, etc.) to meet a specific goal. The second element is a service provider or an IT outsourcing company that offers a pre-vetted team of software engineers to the client.

The service provider acts as a middleman between the client and the hired engineering team or any other team for that matter, wherein they manage and maintain the team’s workflow to ensure the timely delivery of the project. Such relationships can be officialized with an outsourcing services contract which includes detail of the services, compensation, and terms of any outsourced work depending on the project’s nature and the client’s objectives.

Here are some points to be mindful of when looking for such team models:

1. Define expectations and requirements early - Make sure to precisely determine and define business requirements. Evaluate the skills and the number of professionals needed.

2. Outline innovation expectations - Identifying an innovative solution and quantifying its value will assist in strategizing the budget and selecting the most appropriate and suitable service provider. If a detailed description of the idea is not possible, try outlining it, which can be further elaborated and emphasized by the managed team.

3. Governance is the key to success - Once employed, there should be a strict yet flexible and strategically aligned governance framework to maximize cross-company innovation and support the business value, risks, and technical feasibility.

Why do companies leverage managed team model?

A business's success heavily depends on the people it hires for seamless operations. If it doesn’t have the right people in the right places, it can hamper the company’s efficiency and productivity. After all, the back-office team is the backbone of any company in any industry, and leaders must opt for the right team development model and nurture it.

A managed team model can drive high-end and state-of-the-art development in real time. The managed team service provider will connect companies with the right development teams with just the kind of experience and expertise required by the project. Companies, from their end, can set up a project manager who will oversee the entire development process and ensure meeting deadlines and goals.

Here are some advantages that managed team model brings to the table:

No hidden cost

With a managed team approach, companies can avoid hiring, training, and managing costs. The service provider will select, vet, and hire the right IT professionals. In the case of a startup or small business, remote hiring can be highly beneficial. For instance, recruiting a team from India would be in a significantly lower price bracket than a team from the U.S.

The first step of requesting a development team is discussing the project requirement and negotiating an estimate. Then the service provider will bring in a customized team that aligns with the requirement and budget. Companies don't need to worry about hidden costs as the service provider ensures the best and most favorable outcome of the company's investment.

Improved scalability

Finding the right balance to adjust to ups and downs is necessary, especially if the business demand is growing exponentially. It is crucial to meet the business demand without overstretching structure or lack of resources.

Managed team model assures quality production, customer service, and internal operation throughout the business expansion. Since the model is based on an on-demand or need-of-the-hour approach, companies can effectively boost their efficiency by scaling up and down per the business demand. They can request a development team when there's a need without affecting overheads.

Digital transformation growth

Digitalization leads this digital age. Companies must prioritize the adoption of digital advancements and reimagine their business for improved processes, culture, and customer experiences. Transcending traditional methods is the only way to facilitate better collaboration, improved customer service, and grow productivity. Furthermore, data collecting and analysis for better strategy-making and revenue growth is much more practical and seamless with digitalization.

However, many companies are falling behind in automating and digitalizing their operations and productions. A managed team model can assist in cost-effectively capitalizing on digital innovation. These experts will come with significant industry experience and can quickly integrate with the team and take charge of the project without any unwarranted delays.

Focus on goals and results

There's been a shift in the trend of managed team contracting. Gone are the days when companies used to keep their focus on technology, price, and deadlines. The companies were keener on the outputs rather than outcomes.

Whereas, due to the demanding market, companies prioritize outcome-based contracting wherein the managed team model ensures business priorities and end-user experience at the forefront. The team utilizes its experience, knowledge, and resources for a value-driven delivery.

Such prioritization also opens up the door for the possibility of any future relations.

Improved flexibility

The only constant denomination in the market is that its practices and trends would be in a constant state of evolving and growing in all manner of facets. Companies must ensure that their products and services meet these changes and engage their customers. Working with a managed team allows them to face certain market pressures in real time.

Ideal for remote workspace

Remote outsourcing is the natural extension of remote work. Companies planning to go remote or already managing remote development can harness managed team model capabilities to their fullest extent. It is a great way to optimize internal processes while building a remote, diverse, and inclusive workforce while expanding the business's global reach.

What is the future of the managed team model?

Will the trend of managed team model grow?

The answer to this question is a straightforward “YES.” We have already witnessed tremendous growth and will continue to do so in the upcoming years. The digital disruption and erupting digital ecosystem will ensure high demand for automation and innovation. Further down the line managed team model can take a turn and emerge as a full-fledged market phenomenon.

Although, one should also be mindful that as the market and trends change, so do the rules and practices of hiring managed team. The bottom line is to keep an eye on the market and make a strategic decision to fuel innovation and growth.


Undoubtedly, diverse, dispersed, digital, and dynamic collaboration has become quite difficult, but success still hinges on the core fundaments of teamwork, innovative thinking, and equal participation. Managed team model, especially in a remote work environment, can bring tremendous growth in revenue, scalability, and innovation. Make sure to hire a team that reduces turnaround time while simplifying the development process without compromising quality.

Turing is one of a kind talent sourcing platform. Its AI-backed Intelligent Talent Cloud assists companies in remotely sourcing, vetting, matching, and managing the world's best software developers. Join hundreds of companies that trust Turing and garner the benefits of remote engineering talent. Start hiring developers with a 2-week, risk-free trial!


  • Anupriya Singh

    Anupriya Singh

    Anupriya is a content writer well-versed in researching and writing on an array of topics. She works closely with businesses and helps them get rapid and organic growth through compelling digital marketing content. When not working, you can find her reading or sketching.

Frequently Asked Questions

Teams are the backbone and principal building blocks for companies. They form the foundation of the strategies for the company's success. On the other hand, team models enable businesses to build or improve a team to capitalize on quality, cost, value, speed, efficiency, and performance. Basically, the right team model will ultimately boost performance and seamlessly accomplish shared goals.

Without a doubt, digital transformation is the key to scaling a business with unwarranted overheads. Managed teams are apt for eliminating bottlenecks that come with the transformation. They are experts and experienced in idea management, innovation process, and innovation execution. Furthermore, they enable companies to break through resource and talent bottlenecks.

The managed team model is a new and exciting way of handling professional teams. With abundant benefits, the model has already witnessed tremendous growth and will continue to do so in the coming years.

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