Team as a Service (TaaS): A Perfect Way to Meet Your Business Needs

The pandemic’s seismic impact is now more prevalent in the global labor market than ever. Did you know that by 2030, there will be a global human talent shortage of more than 85 million people? This is roughly Germany’s population and could result in around $8.5 trillion lost in potential annual revenue.

Team as a Service

These are awakening trends for businesses that can’t risk slashing their services simply because they can’t access enough talents to work under regular business hours. To keep up, most businesses are supplementing their human capital needs by adopting a team as a service model. A dedicated TaaS team comes in handy when your business needs rapid scalability without incurring high recruitment costs.

This guide gives an in-depth insight into the TaaS cooperation model and how a dedicated team as a service approach is beneficial to your business. Keep reading to learn more.

What is the Team as a Service Model Generally?

The team as a service model is designed for businesses that want to build a highly-skilled team of professionals to tackle business projects as the demand arises. This solution makes it easy for the business to deliver high-quality results without overburdening its permanent staff. Contrary to the typical outsourcing model, with the TaaS model, as the client, you have control over the team’s activities.

You “plugin” and “switch on” the team every time you need to work on a project that requires additional human capital. The team is always at your disposal. You don’t need to train them afresh when you assign a new project because they already learned your business needs during the first encounter. Most importantly, you have the flexibility of assigning tasks remotely, whether it’s a single or multiple projects.

For these reasons, nearly 54% of global companies leverage third-party support teams to enhance their customers’ experience. What’s more, 78% of these businesses are optimistic about their partners when hiring external teams.

It’s also worth noting that the TaaS form of cooperation stacks up way better than traditional options for incorporating external help, such as outside vendors and individual contractors. For instance, working with outsourcing vendors means limited to zero control over your project. Similarly, recruiting many independent contractors doesn’t guarantee building a cohesive team to meet your business needs.

On the other hand, an extended development team as a service works with your business directly, giving you a personal interaction to ensure quality consistency.

How Team as a Service Works

Accessing the best talents possible is critical in running a modern business. The TaaS model allows you to access such talents and makes it possible to focus respective teams on appropriate projects. Getting started with TaaS for software development is pretty easy. Clients have access to an on-site TaaS manager who posts job descriptions to attract viable talents. To ensure that all applicants meet the set threshold or match your business needs, you can participate in the selection process.

The software development team as a service model can provide various specialists to help tackle your project, including QA professionals, UI/UX designers, software engineers, and project managers. Other services that come with TaaS include:

  • Admin duties
  • Multi-layer security protection
  • HR support
  • Workplace management
  • Team selection and onboarding

It’s also imperative to note that clients have an ultimate say regarding extended teams as a service. The vendor gets to close all the questions on their side, but only after listening to your business needs.

The Benefits of Using TaaS Model

The biggest advantage of dedicated TaaS is that it helps you deal with human capital demand as the need arises. Instead of stretching your employees to work overtime, you find a partner to help you set up a temporary team to tackle the increased workload. This saves your permanent staff from burnout and unnecessary stress, which can affect their service delivery.

The TaaS cooperation model is handy in many situations companies find themselves in, including:

  • Filling multiple vacancies on a short notice
  • Keeping up with the dynamic staffing requirements
  • Limitations for hiring locally
  • Hiring on a fixed budget
  • Rapid scaling

On top of that, here are 8 benefits of leveraging the TaaS model:

  • Simplify Your Hiring Process

In the TaaS model, businesses select teams from a pool of talents in the staff augmentation market. In-house recruitment doesn’t give you access to talents all over the world. Also, you’re like a passive participant in the hiring process because you don’t engage the prospective members of the team directly. Instead, you only choose from a shortlist. For instance, you can go with talents who have experience working on a similar project as yours.

  • Cost-Effective

Averagely, it can cost you up to $4.129 to hire an in-house software developer. What’s more, it takes an average of 42 days to fill a vacant position. This can be pretty overwhelming for small businesses in terms of time and resources. There are also other hidden costs of hiring as highlighted in the graph below:

developer recruitment cost

On the other hand, you can retain a dedicated TaaS team at relatively affordable rates. Even better, you can retain a team at a fixed monthly fee as opposed to paying the average, for instance, Ukrainian developer hourly rate. This is minus the costs of regular employee benefits, such as insurance coverage.

  • Flexibility and Adaptability

A TaaS squad immerses itself entirely into a project without distractions. This enhances a continuous turnaround with prompt responses to the current and future demands of the project. You also get better insights into factors that can affect project delivery at any stage, including budget restrictions and technology implementation.

  • High Level of Transparency

Having a development team as a service is nearly the same as running an internal department. The only difference is that they operate from a different workplace. Besides overseeing the whole project, you can make direct daily contacts with the team. This minimizes the risk of missing crucial updates as it happens if you rely on intermediaries.

  • Have Full Control Over Dedicated Teams

Clients have complete control of projects handled by a TaaS team. The client’s involvement starts right from the selection process until a time when the team delivers the project. While your TaaS service provider handles the administrative duties, you ensure that every progress in the project is in line with your business needs and goals.

  • Access a Wider Pool of Talented Specialists

Of course, a successful business has reliable personnel for marketing, finances, and even software development. However, as the business scales, accessing ready-to-onboard professionals can be pretty challenging. On the other side, TaaS service providers have an extensive pool of talented specialists.

  • Close Collaboration 

Collaboration within the TaaS model is swift, starting from the administrator to the team. You can even brainstorm ideas daily through online collaboration tools to iron out the project’s weak points. The idea is to get you involved as much as possible as you lead the whole process.

  • Continuous Integration

A successful project evolves in many ways in different development stages. It can be adding new features or tweaking the existing functionalities. In the team as a service model, the squad is always at your disposal as long as you need it. You don’t have to hire a different team to upgrade your project to a new level because your current team facilitates continuous integration.

Reasons to Use TaaS (Team as a Service) in IT Industry

Are you a high-level decision-maker in an IT business? Well, the venture’s success solely depends on how you approach various projects, whether short-term or long-term. Executives often face challenges when spearheading projects, including poor collaboration, late delivery, and geographical limitations when hiring specialized talents. The team as a service framework can help you solve these challenges, as highlighted below.

  • Communication is Key in IT Projects

Timely communication is what powers effective collaboration in any project. With the TaaS model, you can engage your team on the go, the same as you do with your permanent staff. This makes it possible to resolve issues as they arise instead of waiting until it’s too late.

  • IT Projects Require Prompt Delivery

You can’t keep your customers waiting for endless days simply because a freelancer vanished after taking up a project. Members of a dedicated TaaS team are highly professional and adhere to strict deadlines. Remember, the recruitment process shortlists only talents you can count on when it comes to time-bound projects.

  • IT Staffing Requirements are Dynamic 

The IT industry is very dynamic, so is the recruitment process in the sector. For instance, new technologies are constantly emerging. You would want to hire IT contractors that are up-to-date with these trends. A TaaS model connects you with professionals who embrace continuous learning to fine-tune their skills and meet the highest possible thresholds.

  • Bypass Technical Limitations When Hiring 

It can be pretty daunting to find temporary staff with the right skillset if you scout in your local area. On the other hand, a TaaS team can comprise professionals with multiple skills, capabilities, and proven track records. That way, you have no limits as to who you can hire and what rates.

Does this sound like a model that meets all your intricate business needs? Contact us to build an offshore development team in Ukraine and scale your business operations as the demand arises.

Consider Newxel Your Trusted Partner

Newxel is a trusted outstaffing company that helps businesses across the world harness the limitless possibilities of offshore R&D centers and dedicated development teams. Our expertise challenges and supports your company to set up an external department that drives innovation while also giving you a competitive edge over other industry players.

We have a proven track record, working with companies across various industries, including IT, gaming, fintech, telecom, and cybersecurity. Up to date, we are a proud partner of various businesses headquartered in the US, Israel, and Europe.

Skai, formerly known as Kenshoo, is among the happy clients we have served before. This company wanted to hire five expert developers with Java/Scala programming skills. It took us six weeks to circumvent the recruitment process and deliver the five experienced software engineers.

This can be you too. Reach out to our team and start the conversation of offloading some of your workloads to a reliable offshore team.

Final Thoughts

In a recent survey, 39% of workers noted they battle stress daily due to overwhelming workload. Only 43% of employees believe that bosses actually care about work-life balance when assigning roles. As a leader in your company, you can change this by adopting a TaaS cooperation model to relieve your permanent staff of overwhelming tasks from time to time.

This boosts creativity, morale, and general employee productivity. Moreover, incorporating extended teams as a service yields significant ROI. You get a dedicated team that adapts to changes swiftly whenever you need it to. Most importantly, it’s more cost-efficient as opposed to a traditional recruitment process.

Newxel is here to help you whenever you need to convert your business ideas into reality. Whether building a new project or expanding your existing human capital, we can help you set up a research and development center in Ukraine. Do you want to get started? Book a call with us today and explore your options.


What is the Team as a Service Model?
TaaS as a service model connects you to an external team of professionals to meet your needs on the go. Unlike permanent employees, you only pay members of the TaaS model when you need their services.
Why Use a Team as a Service?
The TaaS model is cost-effective compared to traditional recruitment. You also avoid the rigorous process of screening ideal candidates as your service provider does everything. Your work is only to handpick the best of the best from a shortlist.
Pros and Cons of the Dedicated TaaS
Some of the pros of working with dedicated TaaS include better collaboration, timely project delivery, and access to a wider pool of talents. On the flip side, the model might not be suitable for short-term projects.
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