3 Surprising Benefits of an Embedded Teams Managed Service Model

Australian organisations are focusing their digital investments on compliance, risk reduction, and improving operating margins. And increasingly, they’re turning to Managed Service Providers to help them progress these goals. 

We’re seeing an appetite for the embedded team model to bridge gaps in expertise and capacity. The model offers a tailored and efficient approach for companies using platforms like Adobe Experience Manager (AEM).

This article explores the trends in Managed Services, the embedded teams model, and three surprising benefits of this approach.

The Embedded Teams Managed Service Model

An embedded teams-managed service model directly integrates highly skilled external professionals into an organisation's structure. These specialists tend to work as seamless extensions of internal teams, participating in daily operations, sprint planning, and strategic initiatives while bringing specific program or platform expertise.

Managed Services Shift to Hybrid and Embedded Models

The Australian managed services market is shifting toward hybrid and embedded models. Companies are moving away from purely transactional outsourcing arrangements to long-term partnerships with managed services tailored to a specific niche.  

Current trends include:

• Hybrid service models that leverage embedded teams with traditional outsourcing for flexibility.

• Preferences for cloud, AI, and SaaS platform specialisation

• Blended teams that combine offshore skills with a local presence.

These trends align with the embedded team model’s ability to deliver specialised skills while fostering collaboration within enterprise environments.

While cost efficiency, access to specialised skills, and knowledge transfer and upskilling are well-known advantages, several unexpected benefits emerge when organisations embrace this delivery model. At Vervio, our embedded team approach delivers impactful results for some of Australia’s leading brands.

3 Surprising Benefits

1. Cultural alignment fosters team cohesion

While traditional outsourcing can create cultural divides, the embedded teams model drives collaboration as resources are immersed in an organisation’s culture, adopting its values, workflows, and communication styles.  

This deep integration builds trust quickly and brings advantages, including:

• New ideas and fresh perspectives that respect existing company values

• Greater collaboration as team members act as bridges between different departments

• Organic knowledge sharing and upskilling 

• Innovation spreads naturally through daily interactions

At Breville, Vervio’s embedded AEM specialists have become integral to supporting critical business operations and helping to steer the direction and outcomes of digital initiatives.

"It’s of great benefit having highly skilled Vervio embedded team members who are top quality and key leads in trusted senior roles, who are listened to, and who are valued for their work and how they’re able to lead."

— Sarah Robinson, General Manager of Global Software Products, Breville

2. Relationships and knowledge enable accelerated velocity 

Beyond technical expertise, embedded team members develop valuable relationships and knowledge of the nuances of an organisation. Unlike traditional managed services, embedded specialists have a deep understanding of the following:

• Internal approval processes

• Key stakeholder preferences

• Historical context of decisions

• Organisational dynamics

The ability to pay close attention to a client’s needs and a focus on contributing to shared goals reduces friction and drives faster outcomes. With speed being a critical factor for most IT projects, combining highly specialised resources with internal knowledge ensures smooth collaboration with internal teams. They can navigate complex organisational structures more effectively and identify and engage key decision-makers quicker—facilitating faster buy-in and accelerating decision-making. 

Familiarity with an enterprise’s environment also enables them to navigate internal workflows smoothly and anticipate and address potential roadblocks, helping teams to meet tight deadlines and exceed expectations.

3. Deep integration increases project success 

Perhaps the most surprising benefit is how embedded teams increase a project’s success by reducing risk. A BCG survey of global business and technical-side C-suite executives showed that 30% of the technology development projects in their organisations suffer from delays or budget overruns. 

That same survey showed a close connection between the type of talent a company had and its IT project success rate. Well-staffed teams had a 76% increase in project performance versus organisations with multiple and key vacant positions. The presence of specialised engineers improved outcomes by 14%.

Risk mitigation occurs through:

• Continuous alignment with business objectives

• Early identification of potential issues

• Real-time adjustment to changing requirements

• Seamless knowledge transfer

• Reduced dependency risks

With skilled technical staff in short supply, organisations can use an embedded teams model to increase their capacity, enhance capability, and improve the likelihood of successful project delivery. 

Take the Next Step

At Vervio, we’ve spent years perfecting our embedded service model to meet the unique needs of Australian enterprises. Whether you need a full cross-functional Scrum team or specialised developers embedded within your squads, our approach ensures you achieve a seamless blend of external expertise and internal culture that drives outcomes.

Why Vervio?

Vervio is an Australian-owned digital engineering agency that delivers sustainable solutions to some of Australia's most iconic brands through technical leadership and engineering excellence. With a reputation for speed, precision, and accountability, they partner with customers for the long haul, ensuring digital success now and into the future.