Why Startups Should Consider the Team Extension Model

The growth of startups is witnessing a remarkable surge worldwide, with a current count of 1,183 billion-dollar startups. The concept of startups has become increasingly captivating due to its associated benefits such as tax exemptions, access to funding, easy exit strategies, and reduced patent costs. This has enticed numerous individuals, particularly the youth of today, who are drawn to the idea of starting their own ventures. Given the advantages team extensions have brought to startups, it is essential to explore what the team extension model entails and how it has already benefited and will continue to benefit startups.

Defining the Team Extension Model


In essence, the team extension model is implemented when a company lacks specific skills and expertise within its existing team for a particular department. To address this shortfall, the company engages an external team possessing the required expertise and skills on a contractual basis.

IT team extension is one of the most growing industries. web development, mobile app development, UX/UI designing, cloud developing for such various work companies go for team extension model.

Growing startup industry 


The startup industry is experiencing exponential growth, with various sectors, including fintech, technology, e-commerce, healthcare, sustainability and cleantech, food and beverage, and education, booming over time. Notably, the fintech industry is particularly thriving, with reports estimating the fintech market opportunity to reach around USD 2.1 Tn by 2030. Prominent examples of fintech startups include Paytm, PhonePe, BharatPe, and eBay. 

Benefits of the Team Extension Model in Startup Culture


Scalable Development Capacity:

The team extension model facilitates rapid scaling and growth for startups. By breaking down location barriers, startups can readily hire extended teams with the necessary expertise as and when required.

Access to Global Talent:

Team extension offers startups the opportunity to recruit teams with specialized expertise and talent from a global pool. This infusion of expertise can yield significant positive results in terms of the quality of work delivered and financial benefits.


The flexible nature of extended teams plays a pivotal role in the growth of startups, as they are often required to perform multiple tasks. These teams can work offshore or nearshore based on the specific needs of the startups.

Streamlined Hiring Process:

Team extension eliminates the need for time-consuming interviews and skill evaluations for each candidate. Startups can simply approach reputable team extension companies with relevant experience to secure the necessary team quickly and efficiently.

Seamless Collaboration:

Most team extension companies provide teams with outstanding skills and prior work experience with other startups or companies. This reduces the likelihood of work-related conflicts and ensures smooth operations.

The Profitability of the Team Extension Model for Startups


The team extension model has proven to be advantageous for startups, primarily due to its cost-effectiveness. Startups strive to minimize expenses, and team extension models effectively achieve this goal. By opting for a team extension model, startups can save on various costs, including office space, office equipment, and internet connectivity. Consequently, team extension emerges as a more budget-friendly alternative to hiring full-time employees on a salaried basis. In the event that a startup consistently provides substantial work and projects to a particular extended team, recognizing their effective performance, the startup may even receive a considerable discount from the team extension company.

Considerations for Startup Founders Before Extending the Team


Before engaging in team extension, startup founders must ensure that the extended team they intend to hire possesses specialization in the required area and possesses a commendable track record of previous work experience. Startup founders should also be aware that they have the option to terminate the contract with a team extension provider if they are dissatisfied with the team’s performance. It is crucial to clearly communicate requirements and expectations upfront and monitor the extended team’s progress periodically.



While Silicon Valley has long been recognized as a global startup hub, where successful companies like Facebook and Google emerged, India is now emerging as a competitive player in this space. Bengaluru, in particular, has gained recognition as India’s startup hub, producing successful ventures such as Cred, Swiggy, Vedantu, and Razorpay. As discussed above, it is evident that the team extension model holds great potential in supporting startups in various positive ways. Advantages such as cost-effectiveness, a flexible team, access to global talent, and scalable development capacity make the team extension model an ideal choice for startups


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