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A Deep Dive into Software Product Development Team Structure

A Deep Dive into Software Product Development Team Structure

Team Organization

Do you think about building a strong and flexible foundation for your project? It all starts with the team. How you organize your team can make a big difference in how well your ideas turn into successful solutions. 


To make informed decisions about your team structure, we'll discuss critical factors that define it, such as project complexity, conditions of team collaboration, project deadlines, and your project's budget. Understanding these aspects will assist you in tailoring your team to meet the specific needs of your development endeavor.


We'll consider key software development positions, including business analysts, project managers, UX/UI designers, frontend and backend developers, quality assurance engineers, and DevOps professionals. Each role contributes uniquely to the team's success, and we'll highlight their significance in creating a well-rounded development squad.


Finally, we'll wrap up with best practices for crafting an effective and modern software development team structure, offering insights into what works best in different scenarios. 


Let's dive into the subject!

Traditional team vs. agile team

There are two ways to structure the team - traditional and agile. Below, we will consider both of them. 


While traditional teams often follow a sequential phase-based approach (e.g., analysis, design, coding, testing), agile teams operate in sprints, concurrently engaging in all stages within each sprint. This iterative methodology enables agile teams to deliver functional products swiftly and adeptly respond to evolving requirements.

Also, in contrast to the traditional structure and distinct command lines observed in traditional teams, agile teams thrive on collaboration and self software development management. Decisions within an agile team are a collective effort, fostering a culture of mutual learning and skill expansion among team members.

In essence, the agile software engineering team composition prioritizes flexible collaboration over rigid roles, dismantling silos and championing adaptability to change. Embracing this approach establishes an environment conducive to innovation, accelerates delivery speed, and ultimately results in heightened levels of customer satisfaction.

Let’s compare traditional and agile team structures in more detail.
Traditional teamAgile team
Leadership styleThe project manager calls the shots and manages the projectThe team is self-organized
Project focusThe team must juggle multiple processes simultaneouslyThe team works on each project at a time for certain results
Evaluation of performanceEmphasis on individual performance and contributionsThe team’s collective performance holds significant value
The size of the teamNo strict limits on team sizeUsually, team size ranges from 3 to 9 members
Role definitionA clear focus on determined rolesEmphasizes team abilities and skills over formal job titles

Three approaches to the agile product team structure

In the realm of software engineering team structures, a myriad of models exist, each presenting its distinctive advantages and potential pitfalls. Traditional models, characterized by hierarchical structures, offer clear accountability but might sacrifice adaptability. 


On the flip side, agile models embrace flat structures and cross-functional teams, demanding a potential shift in organizational culture. Hovering between these extremes, hybrid models strike a balance, marrying the stability of tradition with the flexibility of agile methodologies.


However, the effectiveness of a software development organizational structure isn't solely dependent on its design. Other critical factors, such as team size, the diversity of skill sets, project nature, and organizational culture, come into play.


There are the primary frameworks - generalist, specialist, and hybrid - each offering a unique set of advantages tailored to specific project and organizational demands.


The generalist approach champions versatility, with team members adept at various responsibilities. This approach promotes flexibility, a holistic project understanding, and reduced dependency on individual software development team roles. Yet, it may encounter limitations in specialization, potentially impacting highly specialized tasks.


Advantages of the generalist approach:


  • The comprehensive understanding of the product across the entire software creation team facilitates efficient collaboration on various aspects of a single project. This approach enhances teamwork speed, minimizing potential obstacles.
  • The team's collective brainstorming capacity allows for diverse perspectives when addressing challenges, fostering collaborative problem-solving and effective solution discovery.

Drawbacks of the generalist approach:


  • Encountering unfamiliar tasks during project work may extend the time required for completion as team members adapt to new challenges.
  • The necessity to onboard a new team member midway through a project may arise, especially if the generalist software creation team lacks the specific knowledge required for certain tasks. This potential knowledge gap could impact project continuity.


In stark contrast, specialist teams assemble experts dedicated to specific domains, ensuring top-tier quality, efficiency, and a reduced need for extensive training. However, drawbacks include potential inflexibility, dependencies on specific skills, and elevated costs.


Advantages of the specialist approach:


  • Specialists boast a profound understanding of their specific domain, enabling the software creation team to meticulously refine individual project components.
  • Roles and responsibilities are well-defined within the team, promoting clarity and precision.
  • Parallel work on distinct elements by each specialist accelerates the development process.
  • Specialists operate with minimal supervision, showcasing independence and self-sufficiency within the software development team.

Drawbacks of the specialist approach:


  • Limited knowledge of software development team roles outside their specialization may pose communication challenges within the team. This stems from a general unfamiliarity with certain tasks.
  • When developers need to transition to different tasks, there might be a learning curve as they acquaint themselves with specific project components anew.


The hybrid approach emerges as a dynamic blend of generalists' adaptability and specialists' depth. This strategy promises a harmonious synergy, offering balanced expertise, heightened adaptability, and an environment conducive to creative problem-solving. Nevertheless, it's not without its challenges, including potential conflicts in team dynamics, role ambiguity, and added complexity in team management.


Advantages of the hybrid approach:


  • Enhanced efficiency and performance compared to other models due to the flexibility of a hybrid team software development composition.
  • Mitigation of drawbacks associated with both the generalist and specialist approaches.

Drawbacks of the hybrid approach:


  • The varied nature of the hybrid approach demands diverse supervision techniques, making coordination more challenging.
  • Relatively higher expenses and time consumption are associated with the implementation of a hybrid approach.
Navigating these approaches provides a spectrum of choices, allowing for a thoughtful alignment with the nuanced demands of a given project context.

Factors that determine the team structure

Adding another layer of intricacy to the team structuring process is the recognition that not every project should adhere to a uniform staffing model. The considerations for structuring a team can vary significantly, especially when initiating a new project. Here are key factors to contemplate in determining the most suitable structure for your project:


Project complexity

In the labyrinth of team structuring, one must decode the intricate tapestry of project complexity. You should recognize that not all endeavors fit into a one-size-fits-all staffing mold. The considerations for shaping a typical software product development team structure can be diverse, especially when embarking on a new project. 


Here, we delve into the critical factors that shape the most fitting structure for your project, with a spotlight on project complexity:


Standardized vs. complexity spectrum

Gauge whether your project aligns with standardized procedures or ventures into the realm of complexity. Routine projects, like conventional website development, may flourish within a simple team structure. However, projects of complexity involving cutting-edge software with intricate functionalities necessitate a team endowed with nuanced skill sets.


Craving specialized expertise

Delve into the requirement for specialized skills within the project. Complex endeavors often call for experts in specific domains, demanding individuals with a profound grasp of particular technologies or industries. Crafting an agile software development team structure to accommodate these experts ensures a comprehensive approach to intricate project aspects.


Harmonizing diverse components

Projects juggling multifaceted functionalities and the integration of diverse components pose a puzzle in team structuring. A complex project may entail intricate interdependencies, urging a team composition that fosters seamless collaboration among specialists handling different facets of the project.


Innovative problem-solving

Projects at the vanguard of innovation or those tackling intricate problems beckon a team geared for creative problem-solving. The team composition must act as an enabler, encouraging collaboration, brainstorming, and the free flow of ideas to surmount challenges encountered during the project's developmental odyssey.


Adapting to the evolving requirements

Complex projects often pirouette through dynamic changes in requirements. A team structure capable of adapting to evolving project needs, seamlessly integrating new functionalities, or recalibrating strategies in response to challenges stands as the linchpin for successful project completion.


Conditions of team collaboration

Efficient collaboration stands as a linchpin for successful project execution. The conditions under which team members collaborate significantly impact the team's structural design. Projects fostering high levels of collaboration might benefit from a flat structure, encouraging open communication and swift decision-making. 


On the other hand, projects where autonomy and individual expertise are paramount might find a hierarchical structure more fitting. Aligning the agile software development team structure with collaboration needs optimizes overall team efficacy.


Project deadlines

Due dates of the project wield substantial influence in shaping the team structure. Tight timelines necessitate a robust and efficient team composition featuring experienced professionals capable of meeting time-sensitive goals. 


Larger teams, augmented with specialists, can expedite the completion of complex projects within stringent timelines. Conversely, for less time-critical projects, a more streamlined, generalist team might prove to be a cost-effective and flexible choice.


Budget of your project

The budget allocated for a project acts as a pivotal determinant in shaping the team structure. It guides decisions regarding the seniority of team members, the inclusion of specialists, and the overall team size. 


A more substantial budget may permit the engagement of highly skilled specialists, contributing to a more intricate team structure. Conversely, a more constrained budget might lead to a leaner team comprising generalists, balancing project requirements with financial considerations. Harmonizing the team composition with the project's budget ensures cost-effectiveness and optimal resource utilization.


Key roles in a software development team

The realm of software development boasts a multitude of proficient specialists. Projections from Statista anticipate the global software development community to grow to 28.7 million individuals in the year 2024.


Yet, in the intricate landscape of software development teams, diversity reigns. Beyond engineers, the crucial ensemble comprises project managers steering toward timely deadlines, UI/UX designers crafting aesthetically pleasing and user-friendly products, and an array of other experts contributing their distinct expertise.


Let’s consider the main roles in a software development team in detail. 


Business analyst (BA)

A business analyst serves as the bridge between client expectations and the technical team. They meticulously analyze business processes, elicit and document requirements, and ensure that the delivered solution aligns with client objectives. Through effective communication, BAs play a crucial role in translating complex business needs into actionable insights for the development team.


Project manager (PM)

The project managers are adept at orchestrating seamless project execution. They take charge of planning, coordinating, and monitoring project timelines and resources. PMs act as the primary point of contact, enabling transparent communication between the client and the development team. Their leadership ensures projects stay on course, meet deadlines, and exceed client expectations.


UX/UI designer

These experts are the creative minds behind user-centric interfaces. They meticulously craft visually appealing and intuitive designs, considering user experience at every step. Through prototyping and collaboration with the development team, UX/UI designers bring concepts to life, enhancing the overall aesthetic and usability of the final product.

Developers (frontend/backend)

Developers, both on the frontend and backend, are the backbone of our technical team. Frontend developers focus on user interfaces, ensuring responsive and visually engaging designs. Backend developers are responsible for managing server-side logic, databases, and application integration, guaranteeing the overall functionality and performance of the entire system.


Quality assurance engineer (QA)

These specialists play a pivotal role in upholding the quality and reliability of our software solutions. Their meticulous testing spans every facet of the application, where they identify and rectify potential issues with precision. By conducting thorough testing, QA engineers contribute to the delivery of robust, bug-free, and user-friendly software.

DevOps specialist

DevOps experts are integral to the development process, focusing on collaboration and efficiency. They streamline the integration and deployment of software, allowing a smooth transition from software development to production. DevOps specialists implement automation, monitor system performance, and enhance overall project delivery through continuous integration and delivery practices.


While these roles in a software development team represent common positions, they are by no means exhaustive. Certain teams may incorporate additional specialist roles or may operate without one of these primary roles, contingent upon the specific requirements of the project at hand. The software development team composition can be tailored to suit the unique needs and intricacies of each individual project.

Not correct team composition can lead to project fail

Ensuring the right team composition is paramount for project success, as it's the project team that bears the responsibility of delivering value throughout the project lifecycle. A mismatched team lacking the right skills and dynamics can pave the way for project failure. 


Now, let’s consider the impact of incorrect team composition:



Skill misalignment

The skills required for each project are diverse. They range from tech expertise to soft skills like communication and collaboration. If a team lacks the necessary skills or has an imbalance, it can lead to inefficiencies, delays, and compromised quality. 


For instance, neglecting the need for a DevOps engineer may hinder opportunities for enhanced efficiency. In a specific project, the introduction of DevOps led to a significant reduction in release cycles, rapid implementation of over 30 features, and an 80% code coverage.


Errors may also occur in the selection of developers. Opting for less experienced staff to save costs can be counterproductive. Balancing the team with both expert-level developers for technical guidance and less experienced members for fresh perspectives is recommended to ensure a blend of expertise and innovation.


Communication breakdowns

Clear and efficient communication forms the foundation of successful project execution. When team members cannot communicate seamlessly due to differences in work styles, backgrounds, or roles, it can result in misunderstandings, errors, and a lack of cohesion.


Poor decision-making

In projects, decisions need to be made accurately and swiftly. If the team composition does not foster collaboration and open communication, decision-making can become slow, leading to missed opportunities and project setbacks.


Decreased morale and motivation

A team that does not synergize well or lacks a sense of shared purpose can experience lower morale and motivation levels. This can impact productivity, creativity, and the overall atmosphere within the team.


Missed deadlines and budget overruns

Inadequate team composition can result in missed deadlines and budget overruns. For instance, a team without effective project management may struggle to stay on schedule, leading to financial implications for the project.


Signs of the effective software development team

When assembling a software development team, confirming its effectiveness is crucial. To assess if you've made the right choice, consider the following indicators:


Seamless communication: A proficient team communicates effortlessly, ensuring clarity in understanding and timely updates on project progress.


Minimal supervision requirement: While team management remains essential for tracking deadlines and facilitating client-team communication, an efficient team can operate well with minimal constant monitoring. This autonomy often develops naturally among team members with established rapport.


Clearly defined responsibilities: A well-functioning team boasts members who understand their roles, tasks, and deadlines. When uncertainties arise, team members proactively seek guidance from the project manager, fostering a proactive approach to problem-solving.


Unified goal pursuit: An effective team is characterized by a shared vision and collaborative effort. Internal competition is minimized as each member embraces shared responsibility and mutual support, recognizing that project success is a collective triumph.


Peiko’s software creation team

As previously mentioned, achieving success often requires a collaborative effort from a dedicated team, a principle well-acknowledged at Peiko through our extensive experience. Despite variations in team sizes and responsibilities across different projects, the ultimate outcomes have consistently been remarkable.


The optimal software product development team structure is contingent on the unique requirements of your project. Essential roles encompass software developers responsible for both frontend and backend construction, a project manager overseeing the development lifecycle, and UI/UX designers dedicated to enhancing user experience. Also, the roles include QA engineers ensuring software quality and DevOps professionals guaranteeing development aligns with continuous integration and delivery principles.


Let's consider a notable example of one of our projects: crypto currency exchange development. It is a Quan2um, created by Peiko according to European standards, where users can shop and trade well-known listing coins. This intricate project involved a team of 6 individuals, each contributing to its successful completion.


The project, designed to be scalable, adaptable to both web and mobile platforms, and enriched with various features, required about two years for delivery. The result was undoubtedly rewarding, offering top-tier security and valuable features like automatic subtitles with multilingual support.


Our wealth of experience positions us to provide steadfast support in the realm of software development. Whether you're venturing into project realization for the first time or have a seasoned presence in the market, we stand ready to assist you. So, feel free to reach out to us for custom software development services.


By collaborating with us, you will enjoy the following advantages:


  • A dedicated team & adaptive scalability
  • Deep expertise in blockchain development services
  • Product stability assurance
  • Ensuring product-market fit
  • Accelerating time-to-market


Bonus: tips for building the best software development team structure

Creating an agile software development team structure tailored to each project is a uniquely nuanced process that requires a specialized approach and careful considerations. While the intricacies vary, some agile team structuring and management techniques have proven universally effective. Here are insights drawn from Peiko's practical experience:


Embrace flexibility

An agile team thrives on flexibility, adapting to changes seamlessly. Treating team members as individuals rather than mere resources is paramount. Address each challenge with a bespoke solution, recognizing the unique dynamics of your team.


Prioritize interpersonal skills

Teams are comprised of individuals with diverse behaviors and communication styles. Recognize these differences and leverage them to build a cohesive and collaborative team. As a project manager, understanding each team member's motivations, comfort levels, and current state of mind is crucial.


Utilize personal skills for team formation

Tailor your team composition based on a deep understanding of individuals' strengths, weaknesses, and aspirations. Gather insights into their preferences for professional growth and collaboration. By aligning these factors, you can form a team that complements each other effectively.


Communicate clear goals

Keep your team well-informed about the project's business needs, goals, challenges, and client-side developments. This transparency ensures that every team member understands the value of their work, fostering a sense of importance and motivation to deliver their best.


In essence, the success of agile team structuring lies in recognizing and embracing the unique qualities of each team member, fostering effective communication, and aligning individual aspirations with collective goals.



Designing an optimal software development team structure is a quite nuanced challenge that demands a customized strategy. The composition of your team is influenced by various factors, including project complexity, budget constraints, and deadlines.


Now, with a comprehensive understanding of diverse software creation team structures, you have gained the ability to select the most fitting one for your business. 


An agile team structure, renowned for its flexibility and adaptability, is particularly effective for startups, aligning seamlessly with the dynamic needs of the startup environment.


If you're in search of adept and seasoned software developers to complement your agile team, Peiko stands ready to assist. Our approach involves meticulously assembling a team that precisely aligns with your business goals and requirements. Feel free to contact us to initiate a discussion about your project idea.


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Max Privalov
Product Manager and Senior BDM at Peiko
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