The practice of engaging external teams to build software iteratively, incorporating flexible responses to evolving requirements through close collaboration, has become a common strategy for organizations. This approach leverages specialized skills and resources beyond the in-house capacity. An example is a company hiring a remote team to develop a mobile application, with frequent feedback loops and adjustments to the app’s features based on user testing.
This methodology offers several advantages, including access to a wider talent pool, potential cost savings, and accelerated development cycles. Historically, companies have used this model to address skill gaps or to increase capacity during peak demand. Its benefits extend to improved project transparency, enhanced product quality due to continuous integration and testing, and increased responsiveness to market changes.