Scale Your Business with Managed Teams: A Comprehensive Guide

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Publish date:

April 30, 2023

Updated on:

March 8, 2024

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Scale Your Business with Managed Teams: A Comprehensive Guide


Managed teams are a hot topic in the IT world. Agile Manifesto includes self-organizing teams as a key principle, saying that “the best architectures, requirements, and designs emerge from self-organizing teams.

What exactly are managed teams and how they can benefit businesses? These teams are groups of experts who can handle specific tasks or processes independently for your business, from software development to customer support. By outsourcing these functions to a managed team, you can reallocate your resources to focus on the business side of your company.

In this comprehensive guide, we'll walk you through everything you need to know about scaling your business with a managed team. We'll explore the benefits of these teams, how to identify your business needs, find and hire the right managed team, manage your team, and overcome common challenges.

What are Managed Teams?

Managed teams, also known as self-managed teams, consist of a diverse group of experts who take the responsibility of planning, managing, and executing tasks independently to achieve a common goal.

A managed team model involves an IT outsourcing company or service provider and their client. The service provider's team typically includes various employees, such as developers and testing teams, who are managed by the outsourcing company to complete a project assigned by the client.

In this model, the client is often a tech company seeking specific skills and resources to achieve a particular goal. The outsourcing company, on the other hand, possesses the necessary expertise and experience to fulfill the client's objectives. Once the client and outsourcing company sign a contract, the client can then hire a dedicated developer.

In contrast to an extended team, which functions as an extension and a part of the leading team, a managed team operates as an independent entity with its own frameworks and management.

These teams can be located either locally or remotely, depending on the needs and preferences of the company. They can be managed by the company's own management team or by the team leader provided by the managed service provider.

The Benefits of Managed Teams for Scaling Your Business

Two woman are looking for managed teams who can handle their work effectively.

Before we dive into understanding hiring and managing a managed team, let's first discuss why you should consider using them in the first place.

Access to Specialized Skills and Expertise

These teams are typically composed of experts in their respective fields. This means that you can tap into their specialized knowledge and experience to handle tasks that may be outside of your own team's expertise. For example, if you're a software company, you might need a managed team to handle the testing and quality assurance of your software products.


Outsourcing to a managed team can also be a cost-effective solution for your business. By hiring a managed team, you can avoid the costs associated with recruiting, training, and managing your in-house team. This can be especially useful for businesses that are operating on a tight budget.

Increased Efficiency and Scalability

One of the primary benefits of managed teams is that they can help you scale your business quickly and efficiently. 80% of small businesses plan to outsource at least some of their work in 2023. By outsourcing certain tasks or processes to a managed team, you can free up resources and focus on growing your business. This can be especially useful for startups or small businesses that don't have the resources to handle all aspects of their business in-house. Read our article on Outsource vs Insource to get more clarity on this.

Identifying Your Business Needs

Start by evaluating your current workflow and identifying areas that can be improved. This might include tasks or processes that are taking up too much time or resources or areas where you lack expertise or experience.

Once you've identified areas that can be improved, set goals and expectations for your managed team. This might include specific timelines, deliverables, or quality standards. Be clear and specific about your expectations to ensure your managed team is aligned with your goals.

Finding and Hiring the Right Managed Team

Two recruiters are discussing with the owner of a company who can help them with managed teams.

Once you've identified your business needs and set expectations for your managed team, it's time to start searching for the right team for your business.

Research and Evaluate Potential Managed Teams

Start by researching potential teams and evaluating their experience, expertise, and reputation. Look for teams that have experience working with businesses similar to yours, and check their references and reviews to ensure they have a track record of success. This will help you find a team that is capable of delivering high-quality work that meets your business needs.

Conduct Interviews and Select The Best Team

Conducting interviews and selecting the best team is a critical step in the process of hiring a managed team for your business. The right team can help you achieve your goals and grow your business, while the wrong team can set you back and create unnecessary challenges. Our guide, How to Interview a Web Developer, can help you with your hiring process.

When conducting interviews, it's important to ask about the team's experience. Ask for specific examples of projects they have completed and what challenges they faced during the process. This will give you an idea of their expertise and ability to overcome obstacles.

Inquiring about the team's processes is also essential. Ask about their project management methodology, task administration, and quality assurance processes. This will help you understand how they approach projects and ensure that their methods align with your business needs.

Set Expectations & Establish Clear Communication Channels

Once you've selected your managed team, it's important to communicate your expectations and establish clear communication channels. Communication is critical when working with managed teams. Ask about their communication channels, how often they provide updates, and how they handle changes or feedback. Be sure to know about many different communication styles, and how to work with them.

This will ensure that you can maintain an open line of communication with the team and that they can adapt to any changes or feedback you provide.

Managing Your Managed Team

Once you've hired a managed team, it's important to manage them effectively to ensure that they are meeting your business needs.

  • Set up regular check-ins and updates to ensure that you are on the same page with your team and that they are meeting your expectations.
  • Set up processes for task management and project tracking to ensure that your managed team is staying on schedule and delivering high-quality work. Use tools like Asana, Jira, or Trello to track tasks and deadlines, and establish clear processes for feedback and revisions. Here you’ll find our guide on Jira vs Trello: Atlassian’s Project Management Tools.
  • Monitor your managed team's performance regularly, and provide feedback and guidance as needed. Be sure to acknowledge good work and offer constructive criticism when necessary to ensure that your team is constantly improving.

Overcoming Common Challenges

Working with a managed team can come with its own set of challenges. Here are some common challenges and tips for overcoming them:

Cultural differences: If you're working with a managed team in another country, cultural differences can present a challenge. Be sure to take the time to understand your team's culture and customs, and be sensitive to any potential misunderstandings.

Language barriers: Language barriers can also be challenging when working with a managed team. Be sure to communicate clearly and concisely, and use tools like Google Translate or Skype Translator to help bridge the gap, if necessary.

Time zone differences: If you're working with a managed team in another time zone, be sure to establish clear communication channels and set up regular check-ins that work for both parties.


Scaling your business with a managed team can be an effective way to free up your resources and focus on growth. By identifying your business needs, finding and hiring the right managed team, and managing them effectively; you can take your business to the next level. With Pangea, you can get connected to the best-managed teams tailored to your needs. Let us know what you need and leave the shoulder work on us.


Q1. How do you hire a strong team?

To hire a strong team, start by clearly defining the roles and responsibilities you need to be filled. Identify the skills and experience required for each role, and create a job description that accurately reflects the position's requirements. Next, advertise the job opening on relevant job boards, social media, and through your network.

Be sure to screen resumes and conduct thorough interviews to evaluate candidates' qualifications, experience, and fit for the role. Finally, check references and verify education and work history to ensure the candidate is a good fit for your team. By following a structured hiring process and evaluating candidates carefully, you can hire a strong team that will help your business succeed.

Q2. What are the benefits of self-managed teams?

Self-managed teams have several benefits, including:

  • Increased productivity: They have a high level of autonomy, which can lead to increased motivation and productivity.
  • Flexibility: They can be more agile and adaptable to change, as they are empowered to make decisions and adjust their approach as needed.
  • Improved collaboration: They encourage collaboration and teamwork, which can lead to improved problem-solving and decision-making.
  • Cost-effective: They can be a cost-effective solution for businesses, as they require less management and oversight than traditional teams.
  • Higher job satisfaction: They offer team members more control and responsibility, which can lead to higher job satisfaction and engagement.

Q3. What is the disadvantage of a self-managed team?

Self-managed teams come with benefits but also have a few disadvantages such as lack of direction, difficulty in decision-making, the potential for conflict, need for strong communication, and accountability.


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Sakshi Sureka

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