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Dedicated Development Team: When should you hire them?

Dedicated Development Team: When should you hire them?

Global corporate digitization and growing client needs urge enterprises to develop their own digital solutions. However, many of them face a variety of difficulties during the software development process. Web development is a difficult process with numerous variables. Projects vary in length, scope, and requirements. Quite often, a company’s in-house development staff lacks the skills and resources needed to add new features or test current ones. This is when bringing in a dedicated development team from outside becomes a lifeline. 

What is a Dedicated Team Model?

A dedicated development team is a long-term partnership arrangement between a client and an outsourcing software development team of professionals. This is one of the most used partnership types, along with fixed price (FP) and time and material (T&M).

When you engage dedicated teams, you receive a group of individuals that have been hand-picked to work on your unique company goals. This team is similar to an in-house team, as they are technically your workers.

However, unlike employees, you do not have to deal with administrative, HR, tax, and social benefits difficulties with a specialized team. On the contrary, you may concentrate on higher-level business challenges while your development partners handle the rest.

To summarize, a dedicated team model gives you a hand-picked expert team focused on completing a single project. Furthermore, all administrative costs are on their side.

What Is A Dedicated Team Model?

How much does it cost to hire a Dedicated Development Team?

According to Deloitte’s 2020 Global Outsourcing Survey, the primary reason to outsource (70%) is to save money. Hiring a dedicated development staff can also help you save money, and here’s how.

A dedicated development team model‘s pricing strategy is straightforward. Since you hired a team, each person has a set hourly fee, and you only pay for the hours performed. This is the only item you have to pay for. There is no additional cost for renting an office for a team, purchasing equipment, paying taxes, paying electrical bills, and so forth. Furthermore, hiring a dedicated software development team is significantly cheaper and faster than searching for each individual independently with the HR team.

How much does it cost to hire a Dedicated Development Team?

Dedicated Team Members

The composition of your team is determined by your company’s needs. As a result, your development team may include: front-end and back-end engineers, full-stack engineers, mobile developers; UX/UI designers; DevOps engineers; quality assurance specialists; business analysts; product managers; and project managers.

The benefits of dedicated software development team

1. You can avoid the costly recruitment process.

The cost of hiring a specialized team is transparent because you won’t have to worry about unexpected costs associated with recruiting, vetting, and assembling IT specialists in a team because the software development team will handle that for you.

2. You gain from a rapid and simple ramp-up.

The team can swiftly integrate into your development process, no matter how particular it is, as the IT specialists already have a shared understanding from previously working together on related engagements. The members of the software development team are also amicable and helpful, which facilitates easy integration with other teams.

3. You don’t need to modify your processes on your own to allow for remote cooperation.

Software development teams are adaptable enough to fit into your current communication model and assist in fine-tuning all the required tools and environments for your team to easily communicate with the team.

4. You retain complete technical control over the project and have access to knowledge.

Software development teams will impart to your in-house team all the project assets and knowledge amassed during the project, as well as their company’s best practices.

5. You manage the outcomes without investing effort in daily administration.

A dedicated project manager is provided by the software development team who oversees daily operations and workflows and communicates with your project manager (or product owner) as often as required to guarantee process transparency and goal alignment. You will have more time to concentrate on the important aspects of the project as a result.

Development Team vs Fixed Price Model vs Time&Material Model?

Fixed Price Model Time&Material Model Development Team

In a framework known as the fixed price cooperation model, a client pays a set sum of money regardless of the number of hours or quality of the work completed. Short-term projects with well defined requirements and a limited area of work are best suited for this method.

The risk of overpaying is the fixed price model’s primary drawback. The length of time and nature of the work are sometimes difficult to predict. In any case, even if the job hasn’t been delivered, you still have to pay the sum specified in the fixed price contract.

The fixed price model will work for: 

  • Projects with clear deadlines; 
  • Predetermined specifications
  • Short-term projects
  • No changes anticipated
  • MVP development.
When using the Time&Material approach, the client only pays for the actual time and labor the team expended creating a certain feature.

This collaboration model is thus suitable for: 

  • Projects whose needs are flexible
  • Markets that have not yet been fully explored
  • Projects where product-market fit has not yet been established.

Contrary to fixed-price models, the dedicated team structure gives you as much independence and room for growth as you require without costing too much. Despite the fact that the Time&Material model also provides you with the room required for in-depth research and development, it cannot ensure that you will collaborate with the same team throughout the entire project. Specialists may be assigned to other projects if they don’t have enough work on your project.

The benefit of a team approach lies in its commitment, meanwhile. When you employ a development team, you receive a staff that is solely focused on your project and is not required to take on other tasks.

Development Team vs Fixed Price Model vs Time&Material Model?

When do you need a Dedicated Development Team?

The dedicated team model is appropriate for challenging long-term projects with potential for growth. The specialized development team is the best option when your idea needs a discovery stage and lacks product-market fit.

1. When your start-up is in early-stage

Consider hiring a specialized development team if your startup is in its early stages and growth is anticipated. You can create a team more rapidly, spend less on the hiring procedures, and create the product more swiftly. The augmented staff completes the extra work while your in-house team concentrates on business-related duties.

2. When your projects have many vague requirements

The dedicated team is the best option when your idea needs a discovery phase because the product-market fit isn’t there yet. It may take months of testing and interviews before things ultimately settle down because the discovery stage forms the foundation for the project’s entire development mechanism. The dedicated team model gives you the time and resources you need to concentrate on the discovery stage without worrying about going over budget.

3. When you have long-term projects

The committed team model is appropriate for challenging, long-term projects with growth potential. You need a capable group of developers to help you along the road if you want to realize the full potential of your project. In a committed team, you can be confident that the individuals you begin working with will see the project through to completion.

When you SHOULD NOT use a dedicated team model?

Dedicated team models are not a one-size-fits-all solution, despite their obvious advantages. Here is a list of circumstances in which, given the choice between hiring or not hiring a dedicated development team. 

1. Short-Term And Intermediate-Term Projects

Small projects with clearly defined requirements do not require a devoted and involved team. When the work scope is clearly defined, a team of individuals is required to complete the duties. In this situation, a fixed-price model is ideal for short-term projects, but the Time&Material method is appropriate for medium-term projects.

2. Time and money constraints

Choosing a dedicated team model is not the greatest choice when your project’s budget is firmly fixed. Sometimes you just don’t need a full-time project manager or designer. In this situation, a fixed-price model is more than adequate to produce the desired outcome.

3. The project’s scope is completely definable

You should avoid hiring a professional development team if your project has a precise execution plan, all features are planned, and there is no room for compromise. You should choose between fixed-price and time-and-material models depending on the size of the project.

When do you need a Dedicated Development Team?

As a result, hiring specialized software development teams has grown to be a common corporate solution. Dedicated software development teams can be a great addition to or replacement for in-house employees and freelancers. Consider employing a dedicated software development team if you’re a startup, SME, or even a major corporation because it not only enables businesses to significantly reduce development expenses while maintaining control over all current processes in their projects but also about having the consistency, dependability, and knowledge, and making sure you have the right people on board when you need them most.

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