February 12, 2025

Software Development Team Structure: Types, Roles, and Best Practices [2025]

Elena Pashkovskaya

Technical copywriter

Technology

 Software Development Team Structure: How to Get It Right

Elena Pashkovskaya

Technical copywriter

Technology

 Software Development Team Structure: How to Get It Right

Crafting a perfectly balanced software development team structure is vital for a project's successful outcome. Profound knowledge, skills, and experience, supported by a well-thought-out strategy, will bring you from product ideation to triumphant fruition.

But how to assemble the winning team of professionals tailored to your project needs? We'll navigate you through the main team structure approaches, roles, and factors influencing your decision.

Key takeaways

  • The choice of the optimal team structure depends on the time and resources available, development methodology, and project type and complexity. 
  • Generalist, specialist, and hybrid are the main types of software engineering team structures. Hybrid teams gaining momentum for their versatility and flexibility.
  • Agile and Waterfall methodologies drive software development management strategies, directly affecting business agility and project delivery.
  • Agile teams are dynamic, flexible, and open to sudden changes. Choose such teams if your project has evolving requirements and a high level of uncertainty.
  • Need a team of seasoned professionals that perfectly meet your project goals and technical specifications? Choose NEKLO for custom product development!

Factors that influence software engineering team structure

Factors when choosing software development team structure

The factors that define your team's size and structure are encompassed in your future project's key characteristics. Consider the following when selecting your team:

Project type and complexity

Before hiring your team, carefully analyze the scope of your project — the number of specialists you need directly correlates with it. For a small prototype or MVP development, you'll need 4-5 people, while building a new application with rich functionality and integrations may require a team of 6-8 specialists.  

"In estimating software development costs, we consider time, resources, and scope. The scope encompasses the tasks required to achieve project objectives; available time dictates deadlines; and resources determine the effort you can afford".

Anastasia Kulesh, NEKLO'S Project Manager

Deadlines

The stricter the deadlines, the more resources you need to finish the project on time. Imagine you have a tough development time frame, and your project needs to come to market fast in a fiercely competitive business landscape. 

You might think that increasing the number of developers can significantly accelerate the development process: for instance, 200 hours of work can be accomplished by one developer in five weeks or by five developers in just one. However, there are some reasonable limitations to that approach — you cannot rely solely on numbers. 

Not every task, such as design, can be divided between multiple specialists for faster completion. The finishing time depends on team members’ seniority level, task complexity, third-party dependencies, and occurrence of sudden requirement changes.

Budget

The available financial resources influence the whole project planning stage, including the software development organizational structure. It impacts the number of team members, their seniority level, and a preferable outsourcing model that you can afford. 

Agile software development helps optimize costs responding fast to changing priorities, ensuring better result delivery, and minimizing risks of failure. Applying full Scrum can lead to up to a 250% quality increase.

Development methodology

Waterfall vs Agile team structure

The two main approaches to project management — traditional Waterfall and Agile (and hybrid options in between) — significantly influence the roles, responsibilities, and management style of your future team and the software development organizational structure.

What are the differences in a nutshell?

Waterfall methodology breaks down the project into sequential stages with fixed roles and responsibilities. Each stage starts after the previous one is completed: analysis — design — development — testing — implementation, making project budget and outcomes more predictable.

This methodology entails a defined project scope and requirements, a hierarchical team structure, and the project manager's complete control over the project and responsibility for pivotal decisions. 

Agile methodology represents a dynamic approach to project management. Its iterative and incremental nature allows it to accommodate changes and feedback fast, keeping all team members actively involved. Each sprint the team develops a piece of functionality, implements decisions from previous discussion, and defines errors and bottlenecks met during the cycle.

Agile makes teams self-organized and self-managed. While there are still leaders, like Scrum master or Project manager, their responsibilities are focused on creating a work environment for the team's effectiveness. Moreover, Agile team structure allows some degree of autonomy and freedom in workload prioritization.

Traditional (waterfall) team vs agile team

Category Agile Waterfall
Implementation flow Iterative and incremental Sequential and linear
Project phases Sprints Defined phases
Project requirements Evolving Well-defined
Team structure Collaborative and cross-functional Hierarchical and unchangeable
Team size Up to 10 people Unlimited
Decision making Decentralized Centralized
Scalability Highly adaptable teams Rigid teams resistant to changes
Client’s involvement High Limited
Best for Complex, dynamic projects with changing requirements Stable projects with clear requirements

P.S. Hybrid development models are also gaining popularity, bridging the gap between Waterfall and Agile constraints. According to the 17th State of Agile Report, 42% of respondents revealed that their organization uses hybrid models.

Roles in development team structure

Roles in development team structure

An average software development team includes five different roles, but their overall number exceeds 10. You may not need all listed specialists for your project, but knowing them leads to more well-informed software team structure planning and better resource allocation.

Business analyst

Business analysts transform business goals and requirements into tangible technical specifications. They bridge the gap between company executives, stakeholders, and the development team.

Business analysts examine corporate procedures, identify potential for development, collect and analyze data, and provide reports and recommendations to the client. This role ensures that technical solutions align with corporate goals and keep the business processes efficient. 

System analyst

In software team structure, system analysts determine the client’s needs and transfer them into specifications. Their job is to make system evaluations (hardware and software) and handle testing, system configuration, and instructions. Additionally, they find ways to add new functionality to the system and troubleshoot issues that arise.

Sometimes, business analyst positions also include some system analysis. This requires more training, deep technical knowledge, and a comprehensive understanding of software systems.

Software architect

At the pre-development step, software architects examine the requirements, constraints, and risks of the future project. Later, they determine how the software will look and function and outline its core modules, connections, and integrations. Such professionals coordinate technical teams, enforce coding standards, and perform regular code inspections, engaging with the development team at every step of the project. 

Compared to tech leads, software architects concentrate on strategy, communicating their decisions to stakeholders and developers. The role requires deep technical knowledge and robust communication skills for software engineering supervision.

Project manager 

Project managers plan and organize the development process. They orchestrate the team, ensuring the project moves in the right direction and the work gets done. Project managers assign tasks to the team, control task fulfillment, and keep the project on track. Another important aspect of this role is adhering to the project schedule.

The project manager is responsible for project delivery. They identify the project scope and are the first to know if some extra scope of work or issues emerge. This role is crucial in the development team structure and requires great problem-solving and communication skills, as well as work structuring capabilities.

Product manager

Product manager takes ownership of the product and prioritizes its features and functionality. Working closely with the development team, they monitor how the product meets the target audience's needs and aligns with business goals.

Product managers think more strategically and see a bigger project picture behind day-to-day operations than a product owner does. It is the duty of the product manager to ensure the software achieves both success and profitability.

UI/UX designer

UI/UX designers are responsible for user-friendly interfaces. They also create graphic prototypes and mockups of future products, focusing on ease of use and aesthetics. Designers provide web and mobile apps’ responsiveness and modern look.

Why does great design matter for business? Well, nearly 40% of users will leave an app if they find it visually unappealing, and 94% of respondents say that the first product impression is design-related.

Software developer

These are the ones who write code that later becomes a functional, feature-rich product. Software developers should be skilled in various programming languages, frameworks, and development tools. There are many clusters inside the role depending on skillsets and expertise.

The software development organizational structure often includes front-end and back-end developers, mobile developers for iOS and Android platforms, who connect development and operations teams.

Quality assurance engineer

Quality assurance engineers ensure that product features and functionality are consistent with requirements and that no severe bugs can disrupt user experience. They write and run tests and check different pieces of code for defects and documentation compliance.

In the ideal case, a quality assurance engineer would be part of the team. They would be involved at every stage of the development process and responsible for bug-free product performance. In reality, some small projects and startups place the task of code testing in the hands of their software engineers.

Team lead/tech lead

As the name suggests, tech lead is a technically experienced person who has worked on various projects and systems. They help guide tech teams through technical matters and assist them with any difficulties they may face. Sometimes, tech leads take team lead responsibilities, but handling both can be very time-consuming.

Team lead focuses on team dynamics, encouraging collaboration and open communication. They need to have strong interpersonal skills to connect with team members, good organizational skills to manage workflows effectively, and the ability to mediate when competing opinions or priorities emerge in the team.

Aspect Tech Lead Team Lead
Focus
  • Technical excellence
  • Architecture
  • Code quality
  • Team management
  • Coordination
  • Project execution
Responsibilities
  • Oversees technical decisions
  • Conducts code reviews
  • Creates system design
  • Managing team members
  • Ensuring deadlines
  • Resolving conflicts

Product owner

Product owner is a member of the Agile team structure. They help the team focus on the customer and their needs. In this role, the individual works closely with team members, needs to be detail-oriented and organized, and must have excellent communication skills.

Compared to a product manager, a product owner has a more narrow scope of responsibility and makes less strategic and more tactical decisions. They aim to bring maximum value to end users. 

The role is rising in popularity and is expected to reach 10% demand growth by 2028. A remarkable fact: In startups, the product manager often takes on the role of a product owner, handling both strategic vision and execution.

Scrum master

Scrum master is another typical Agile development role. They establish and maintain a project management framework by delivering iterative development, collaboration, and continuous feedback. The Scrum master is responsible for ensuring that the team follows development principles and is effective and productive. As Scrum remains one of the most popular Agile frameworks, this role is hard to underestimate.

DevOps engineer

The DevOps role bridges development and operations teams, making development cycles shorter and deployment more efficient. Such engineers manage the CI/CD pipeline, alerting systems, and cloud resources and deployments. They ensure the product’s enhanced security, quality, and seamless functionality through constant monitoring, automation, and testing.

Main approaches to software development team structure

There are three main methods  of assembling winning teams: generalist, specialist, and hybrid. Every option is tied to your project objectives, complexity, and available resources. Let’s take a closer look at them. 

Approach Description Skill Set Drawbacks Suits Best For Example
Generalist Professionals with experience in different domains and technologies Broad skillset May lack niche expertise Small teams, low budget projects, Low to mid complexity projects Fitness app MVP development for a startup
Specialist Experts with specific knowledge of the particular technology Highly skilled in single niche May experience communication gaps, high dependency between team members Niche products, mid to high complexity projects Blockchain-powered decentralized finance platform development
Hybrid Team consisting of generalists and specialists Mixed expertise May have communication issues Complex projects, companies with large budgets Building SaaS tool for project management with real-time collaboration

Generalist

A generalist approach implies hiring professionals with a wide range of skill sets. Such do-all team members take various responsibilities without shrinking them to one specific area, contributing to the project's flexibility and adaptability. The team's versatility allows its members to contribute to different parts of the project, while strong analytical thinking and multi-domain knowledge help tackle a variety of challenges. 

The advantages of generalist approach include:

  • Comprehensive understanding of the project: the whole team deeply understands the project, improving decision-making and work efficiency. Team members complete tasks faster and face fewer blockers during the process. 
  • Different perspectives: the entire team can highlight different aspects of a problem and work out an effective solution.
  • Versatility with tools: team members are familiar with various tools across domains, use them for the right tasks, and quickly learn new ones when a project needs to evolve. 
  • Reduced dependency: as each team member can perform various tasks, there is less reliance on a specific role or skill.

The disadvantages of the generalist approach include:

  • No deep expertise: team members may lack deep knowledge of highly specialized tasks, leading to lower efficiency and quality losses.
  • Complex time management: as each professional tackles several tasks, prioritizing tasks and managing time effectively can become hard.
  • Workload issues: multiple responsibilities can negatively impact team member's focus and productivity.
  • New responsibilities: some tasks may be new to your generalist team member, requiring more time to learn and complete.

Generalist software team structure works well for small Agile teams that develop MVPs that will evolve over time, low-budget projects where the business cannot afford costly experts, and small—to medium-sized projects.

Specialist

Relying on a specialist approach, you hire a development team of highly skilled individuals with narrow expertise. Each team member is an expert in a single niche and is responsible for their part of the development process. Together, a specialist team can build a high-quality product of any complexity. 

The advantages of the specialist approach include:

  • High expertise level: each team member is a seasoned professional with a deep understanding of their language such as Java, framework like Angular, or technology like eCommerce platforms.
  • Defined responsibilities: the individuals focus only on the specific tasks they are proficient in. 
  • Independent work: experts don't need much supervision in their daily tasks, which makes the development team highly self-sufficient.
  • Fast development: as each team member concentrates on a particular task, simultaneous development accelerates the progress.

The disadvantages of the specialist approach include:

  • High cost: hiring specialists will cost a bundle. Vetted professionals are hard to find and recruit due to the high demand on the market.
  • Lack of communication: specialists may have little knowledge of the other tasks and roles, creating communication gaps.
  • Increased dependency: heavy reliance on one skill or task may result in bottlenecks, slowing down the development.
  • Little flexibility: potential difficulties may arise if professionals handle tasks outside of their expertise.

This software development team structure is suitable for projects with highly specialized requirements which call for narrow knowledge and skills, such as complex projects like cloud migration or enterprise-level app development. 

Hybrid

A hybrid development team structure encapsulates the best features of a generalist and specialist approach: flexibility, profound knowledge, efficiency, and performance. Its adaptable nature allows it to tackle any project with skill and expertise, from legacy app modernization to messaging platform development.

The advantages of hybrid approach include:

  • Great communication
  • Versatility balanced with technical proficiency
  • Reasonable workload
  • Fewer dependencies
  • Enhanced problem solving

The disadvantages of hybrid approach include:

  • Tricky coordination
  • TIme-consuming implementation
  • Potential role confusion

A hybrid software development team structure suits large, complex, cross-functional projects; it is often applied in large organizations with multiple projects and enables better resource allocation.

Generalist, specialist, and hybrid team structure approaches work well both for Agile and Waterfall development methodologies

Steps to assemble the team

Actionable steps for assembling a development team

  1. Analyze the project's requirements and determine its size and complexity. Ensure that your objectives are aligned with the project scope. 
  2. Create a project plan and outline your resources, tasks, and deadlines. Consider the project's budget, specific objectives, and possible risks.
  3. Referring to the plan, select a suitable development methodology, choose a software development team structure, and identify key roles and responsibilities in it. 
  4. Hire professionals with relevant expertise. You can opt for an in-house or outsourced development team — the latter is more cost-efficient and flexible.
  5. Ensure you've filled all necessary team roles. Remember to balance soft and technical skills within the team.
  6. Start onboarding — introduce the team to the project goals, workflows, and schedules. Provide tool access and documentation and clarify roles and responsibilities.
  7. Set effective communication, workflow and task tracking. Develop meeting schedules and set communication tools for chatting, video conferencing, and project management.

When to use an Agile software development team structure

Features of a winning Agile team

Agile is considered a modern software development team structure, although it was implemented for a dozen of years and has already proved effective. It still prevails among other approaches to the development process, making the projects thrive.

However, Agile is not a one-size-fits-all methodology. Some projects may require a more linear approach, like Waterfall, while others will work best with hybrid methodologies, like Water/Scrum/Fall. Let’s outline distinct criteria for choosing an Agile software development team structure. 

Choose Agile, if you prefer:

  • Flexible and dynamic environment
  • High adaptability to change 
  • Collaborative culture
  • Customer-centric vision
  • Continuous improvement
  • Management support

Agile teams suit complex projects, those with evolving requirements and a high uncertainty level. Agile shifts change management, enabling cross-functional work and the use of diverse skills, resulting in better operational and commercial performance.

Benefits of Agile software development team structure

At the end of the day, what is the value that the Agile teams provide? 

  1. Better efficiency: simultaneous work, in contrast to Waterfall's sequential approach, leads to finer project coordination and efficient task fulfillment.
  2. Enhanced communication: Daily meetings, sprint reviews, and backlog refinement enhance transparency and collaboration and help avoid misunderstandings.
  3. Drive for innovation: Agile teams are ready to embrace change, test and validate ideas, and find creative and outside-of-the-box solutions to problems.
  4. Adaptability to change: this software development team structure is flexible and responsive to shits in project requirements and business needs.
  5. Higher quality: well-adjusted teams can bring better results due to more frequent and thorough testing procedures at every stage of development.

Overall, the Agile methodology promotes flexibility, responsiveness, and efficiency. The Agile team structure helps deliver high-quality, customer-centric software solutions quickly.

Best practices for crafting Agile software development team

Agile team management tips

How can the most efficient software development team structure bring the most value? While many aspects depend on project type, complexity, and methodology, some common advice for team management exists.

  • Promote collaboration: Agile teams thrive in healthy work environments where every team member can be heard and their opinion counted.
  • Use tools and technologies: improve team efficiency using project management tools, version control systems, CI/CD pipelines, and performance monitoring tools.
  • Align with business goals: when choosing an Agile team structure, choose the one that fits your business requirements, operations, collaboration needs, and corporate culture.
  • Define clear roles and responsibilities: while it can be hard for generalist teams, such practice decreases the risk of burnout, low productivity, and high workloads.
  • Establish accountability: by ensuring task visibility for each team member, conducting routine meetings, and leveraging project management platforms and tools.
  • Foster communication: set specialized tools like Slack or Asana to maintain seamless communication. The frequency of meetings depends on team size, project complexity, etc.
  • Empower team ownership: teams that can make decisions and take ownership of their work are more creative and innovative. Don't micromanage!
  • Find the balance: the right proportion of skills and experience ensures that your team is equipped with the right expertise for your project's success.

Remember that there is no single solution to an ideal development team structure. Your project is unique, and so are your team's roles and responsibilities. 

Common mistakes in assembling a development team

Many things can go wrong when creating a software development organizational structure. We suggest not blundering into things on your own but learning from others' mistakes instead.

1. Don't ignore how well the team aligns with company culture

The structure of your team stems from your business values and work style. If your company values self-direction, choose a flat team structure that promotes collaboration and innovation — opt for cross-functional teams. To make it short, if you prioritize transparency and open communication, set proper channels and procedures for sharing thoughts, progress, feedback, and more.

2. Don't rely solely on hierarchical decision-making 

Rigid management structures limit creativity and innovation. By contrast, collaborative decision-making promotes engagement and leads to better, well-informed choices. While removing hierarchy from the equation is impossible and unnecessary, at some level, there should be independent thinking and ideation; as a rule, it leads to more successful project outcomes.

3. Don't isolate your team

Team isolation can result in a product that deviates entirely from its original vision. Without comprehensive project insights, internal and external alignment, and proper guidance, the risk of failure increases. To mitigate this, break down data silos, participate in project reviews and cross-team collaboration sessions, and gather feedback from stakeholders and other teams.

4. Don't ignore team dynamics

The dynamics of software engineering team structure can change over time. It depends on project size and complexity, and neglecting such changes may lead to misalignment, low morale, and motivation loss. This is especially true for hybrid teams, where the mix of generalists and professionals has a greater dynamic impact. 

Monitor team dynamics and make adjustments to ensure everyone remains engaged and motivated. 

5. Don't neglect documentation and knowledge sharing

Conduct regular peer code reviews and create accessible knowledge repositories to promote team efficiency. Maintain thorough project documentation so that each team member can address it and clarify their concerns. Sufficient documentation is a must for every project, but specialist teams rely on it more than professionals from any other development team structure.

Conclusion

The nature of your project defines your software development team structure. The first steps to building a well-suited team include refining key project parameters and selecting the right development methodology. You can adopt a generalist, specialist, or hybrid approach, ensuring a balanced mix of expertise and skill sets.

Looking for an Agile development team for your project? Contact NEKLO to discuss your vision and provide initial estimates. We take a meticulous approach, fostering a true partnership and treating your project as our own.