Managed Product Development- A New Way To Software Outsourcing

Let's Discuss Opportunities
Planning to outsource your next product development? Download our Complete Guide To Outsourcing Product Development and get the complete analysis of the outsourcing situations, advantages & cost included in the endeavor. It will help you to calculate the cost-benefits of outsourcing, and some tips and strategies to succeed.


Not every business has everything to start with the product development process. Also, a good or even a great idea is not enough to take you so far. The lack of required focus on product development and marketing can quickly wipe you out of the industry or a product failure with no sign of existence left.

The changing market conditions outpace an enterprise's ability to grow and adapt. Moreover, it assists you in-house professionals in considering all aspects of your product strategy development, including creating innovative products, enriching your software development portfolio, and marketing strategies.

To do this all efficiently and smartly, the Managed Product Development (Outsourcing Model) comes into the picture.

Let’s explore this in more detail.

New call-to-action

Managed Product Development-An Outsourcing Model With A Difference

Managed Product Development is the most preferred outsourcing and strategic engagement model by enterprises today. It is involved in the business workflow models to maximize the latitude of the outsourcing partner.

The company needs this model when it lacks the expert technology needed or the IT capability for full-cycle software development.

The model assists the clients with the high-level vision for the product, and the outsourcing partner handles the rest.

In this model, the outsourcing partner holds complete responsibility for the entire product development lifecycle, starting from framing the core business requirements to the implementation, marketing, and post-production support and maintenance.

Your outsourcing partner is accountable for end-to-end product development and takes complete ownership for designing and creating a product for the client.

New call-to-action

Defining Managed Team Model

Developing a digital product from scratch is challenging and tricky.

Delivering excellence in both strategic and operational vision in product development is extraordinarily difficult—but it can be done seamlessly. Enterprises today are under extreme pressure and rush to implement new innovative ideas to become the next big marketers and rule the industry.

They all can do it by accelerating time to value, increasing profitability, reducing costs, and adapting to the ever-changing landscape of the software industry. It is one of the most critical factors contributing to this professional pool of talent with skilled expertise and rich experience.

 A managed team model comprises a client and the outsourcing firm or a provider. The outsourcing provider has the particular expertise and experience to satisfy clients’ objectives.

Read also: Managing Remote Development Team In 2021: Challenges, Tools, and Trends To Watch

It's an intermediate option between an extended team and a completely outsourced solution. The company needs such a team when a company has long-term projects and wants full-time team involvement. Here you get an agile, cross-functional, efficient team to accelerate your development process with limited time and effort.

Hire remote developers from India

Why Managed Product Development Team Is Great To Work With?

Partnering with a renowned software outsourcing firm is a great treat to your business.

The industry experts help you drive the development of high-end solutions in real-time. The skilled and productive managed team helps businesses with timely delivery of the product with no bugs left.

It empowers innovation to your business and brings in tech-enabled changes cost-effectively. 

Improved Scalability

Maintaining scalability is a crucial consideration for your business to satisfy customer requirements. Managed teams help companies scale the development processes to accelerate business growth.

The professionals in managed product development teams can scale up and down whenever the company requires them. Scalability is extremely important to your business as it does not impact your additional business overheads.

Read also: Unbiased Tips To Set-up an Ultra-powerful Product Team-A Cheat Sheet For Startups

Multiple skills expertise 

Managed development teams own a pool of professionals having expertise in multiple skill sets and experience. You can select a professional according to your project requirements. Also, you can interview each of the candidates from particular perspectives and then hire.

Managed teams have multiple specialties and talents.

Moreover, hiring a software outsourcing team will help you with a diverse range of services.  It is more like a one-stop destination for buying both rich experience and years of experience.


Drives Innovation and Transformation

In the fast-changing and super-competitive environment, most enterprises today are failing to adapt to the evolving technological innovation.  They need to be charged and contribute an extra effort to accelerate their business concerning the changing environment and fast-growing customer needs.

They often fail to invest in digital innovation to enhance software product capabilities and business process transformation.


Managed teams deliver cost-efficient product development services and ensure less or no cost development services associated with the project. Partnering with an experienced team helps your company to boost business revenues at all parameters.

Managed teams thoroughly understand your project requirements, provide an estimate and handle your project efficiently. It acts as a customized model that changes according to your business requirements.

With managed teams, you can boost your business processes and invest your valuable resources in other core business areas.

Read also: Working With Remote Tech Teams: Everything Product Agencies Need To Know

Promotes Collaboration

Large-scale projects often face challenges as it involves multiple business perspectives that need your attention. The business often suffers from handling them efficiently as there are too many elements involved.

Under the assistance of a managed team model, both the development team and the client collaborate while working with each other. This helps you in fast and smart long-term project planning.

A managed team always helps you collaborate and contribute more to new ways of finding software solutions.

Continuous Integration

Continuous integration is one of the significant benefits that managed teams provide you. Development teams can help you add new features and functionalities to your project. 

Managed team model proves to be fruitful for long-term projects that evolve and grow rapidly over time. The company drives the entire project to a different stage with managed teams.

evaluating software development partner

How Managed Team Work With Your Enterprise?

Here are a few steps that managed teams follow to work seamlessly with your enterprise.

  •  The business requirements, number of team members with the required skill set, and experience are defined by the client first.

  • After that, providers hire a dedicated developer or a managed team that corresponds to specific business requirements. The outsourcing team and the client will get agreed on the project requirements.

  • Then the pool of professionals comes together as a team and starts building a digital product for a specific time.

  • The client has full control and access over the team and the project, whereas the managed team focuses on delivering the desired results.

Also Read- How To Build A SaaS Product?

Extended, Managed, or Outsourced Teams: Which One Suits Your Business?

Here is the difference between the 3 outsource models. Let's see which one suits your business requirements.

Extended Team

Extended teams include an in-house manager and an outsourced team. The extended team helps you enhance your capabilities and scale your project faster and easier.

Startups will benefit more from an extended team. Here the company manager constantly communicates the company’s needs to an outsourced team that can quickly adapt and changes the software. For the company to use an extended team, it can deliver products on its terms without hiring more in-house professionals. 

Managed Team

A managed team is a combination of an extended team and outsourcing professionals. Here, the in-house manager is outsourced from another firm to develop a project.

A managed team will fall between startups and big companies depending on the business requirements. A managed team is required when your project manager gets involved with other projects, but the project requires needs in-house management.

Also Read- How To Build A SaaS Product?


Outsourced Team

An outsourced team is the traditional and least hired. The team oversees the entirety of the company’s project. It outlines the project’s needs and requirements, and the outsourced team will return a finished project by a specific timeline.

Big companies benefit from an outsourced team as it delivers the final product in a given period of time. Here the company signs a contract with the outsourced team for the completion of specific projects.

Concluding Lines

Businesses today face fierce competition while moving ahead with the product development process. The only way to survive in this competitive environment is to bring technological innovation into your development process. Managed product development services ensure enterprises get quick and timely feedback and ensure that everything is working as planned. This outsourcing model is one of the best ways to beat your competitors and helps you move ahead.

New call-to-action

Topics : Product Development

Kanika Gupta

Written by Kanika Gupta

Kanika Gupta, a professional tech writer works as a content writer in Classic Informatics, a leading web development company. She loves to write master tech pieces and let readers connect with them fluently.

Join Our Newsletter

Get the best of Web and Mobile world straight to your inbox.