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What Is a Dedicated Software Development Team

Károly Fodor

Dec 8, 2022

A dedicated software development team is a business model offered by many software development companies. With this model, a client company hires a team of software developers who work exclusively on their project rather than being divided among multiple projects or clients.

The dedicated team works remotely and full-time and reports directly to the client. This model allows the client to have a higher level of control over the development process and can be a good option for companies with large, complex software development projects.

A dedicated software development team typically comprises a range of IT specialists with the skills and expertise needed to work on a specific software development project. The team's makeup will depend on the project's particular requirements.

A dedicated software development team may include the following roles:

  • Front-end developers: These professionals are responsible for creating the customer-facing side of a software product, including the user interface and design.

  • Back-end developers: These professionals are responsible for ensuring that the code for a software product runs smoothly behind the scenes.

  • Full-stack developers: These professionals combine front-end and back-end developer roles and have expertise in both areas.

  • UX/UI designers: These professionals are responsible for designing a software product's user experience and user interface to make it user-friendly.

  • Project and product managers: These professionals are responsible for making the development process run smoothly. Product managers focus on product development and releases, while project managers focus on coordinating, managing, and overseeing projects.

  • Business analysts: These professionals investigate business situations and the market environment, analyze problems, and identify improvements.

  • QA engineers: These professionals focus on improving software development processes and identifying and eliminating defects in a product.

When to Hire a Dedicated Development Team?

Choosing the right software development team for your project can be challenging. It's essential to consider your project goals, deadlines, and desired features when deciding on the best team structure. As you define your project requirements, you can determine the best collaboration model to meet your needs. There are several different models to choose from, including hourly or project-based pricing, a dedicated development team, or a hybrid model that combines elements of different approaches. Each model has its benefits and drawbacks, and the best option will depend on your project's specific needs and goals. It can be helpful to consult with software development experts or professionals with experience in different collaboration models to help determine the best fit for your project.

Common cases for hiring a dedicated development team

1. Projects with changing requirements

There are many reasons why requirements change along with the development process. They can include shifts in user requirements, adjustments to suit stakeholders' needs, business processes, restructuring within a company, implementation of emerging technologies, and more.

Change of requirements is a frequently occurring process. Therefore, it's helpful to have a capable team of specialists with a clear vision of all the processes happening in the project and company. A dedicated development team can quickly reorganize the development process and adjust to the new requirements without spending too much time exploring the ins and outs of the process. Backed by technical experience, the team can dive into the details of the client's project using business analysis tools to get to grips with the challenges and intentions of the project and ensure the development team is on task with the right solution.

2. Long-term projects

If you're considering launching an extended-term project, it's essential to ensure that you have a stable team of professionals ready and available to do the job. A dedicated software development team aims to deliver long-term collaboration with their software development partners by working closely with their specific needs and going into the nitty-gritty of the project. Additionally, if a particular set of skills is required, dedicated teams can often draw from their talent base to include this individual in the project faster than a regular hiring process.

3. When a project requires specialists with a specific profile

The software development market is experiencing a significant shortage of talent. Companies outsource IT projects due to the lack of skills found in an in-house team. Therefore, it's quite challenging for many companies to quickly find the needed tech expertise for their projects at the time when they need it. A dedicated software development team model allows businesses to find outstanding IT specialists worldwide within several days and start the process much faster.

IT outsourcing companies provide IT experts with various tech stacks and loads of experience stemming from the various software development projects they completed. When hiring a dedicated development team, you can be as hands-on or hands-off as you want. This can mean anything from handpicking the specialists included in the team and assigning test assignments before working together and diving into the work with the team; to allowing the team to work their magic and create everything from roadmaps to timeline and produce results.

4. Projects with tight deadlines

When a project has a tight deadline, it can be challenging to get the right team on board quickly and bring them up-to-speed with the requirements of the role and project. In fact, it takes more than two months to hire a new tech employee and let's imagine multiplying that for the whole team. This is precisely why working with an already established dedicated team can get results quicker than searching for an in-house team.

Why Choose Dedicated Development Team Services

A dedicated development team model allows businesses to cut down development costs substantially. In a survey by Deloitte, over 70% of businesses stated that cost was a significant factor when deciding to outsource. Clients can spend their budget on something other than office space and equipment or pay for employee benefits. Meanwhile, they have complete control over the team and the project, remaining in charge of the development process.

Nevertheless, a dedicated software development team model can offer companies much more than just a cost reduction. If you are thinking about IT staff augmentation or have decided to hire a dedicated software development team, then there are multiple advantages that your business can harness.

There are several benefits to using a dedicated software development team for your project:

  • Cost transparency—with a dedicated development team, you'll pay only for the services provided by the team, excluding any extra expenses related to in-house team hiring and management unless

  • Quickly tap into the best IT talent and vast talent pool—dedicated development teams generally have extensive experience working at diverse software development projects of international level; you can quickly find the needed talents, build an entire team, selecting various specialists provided by the outsourcing vendor;

  • Top-notch tech expertise—IT outsourcing vendors will help you select the software development specialists with suitable tech stacks or profound knowledge in working with the latest tech innovations such as Internet of Things, Artificial Intelligence, Big Data, and others;

  • Team availability and direct communication—when hiring a dedicated development team, you get a standalone team of professionals aimed at developing your project alone and solving any issues related to it; dedicated development teams allow you to take absolute control over the team management; you can address your team with any concerns or issues arising during the development process and get the answers you need when you need them;

  • Focusing the in-house team on core business tasks—with a dedicated software development team, you can effectively enhance your business development. Just hand over all the technical tasks to your outsourced team and help your in-house employees focus more on the core business tasks;

  • Fast adaptability—high market competition and the increasing rate of digital transformation mean speed is of the essence when it comes to your business goals. Hiring a dedicated development team, means you gain access to the specialists you need when you need them for just as long as you need their skills and not a moment longer. What does this mean in practice? Say, for example, you want to release a new feature on your application that initially has one set of requirements, then your close competitor releases an update, and you need to change specifications. Your dedicated team can adapt quickly, finding you the right specialist to get your project on track as fast as possible.

Who Needs a Dedicated Software Development Team?

Deciding between hiring an in-house team, following a hybrid model, or finding a dedicated development team, can be a challenging decision for any business. Let's take a look at companies for whom hiring a dedicated software development team can prove beneficial:

  1. Startups

At the beginning of their development, startups usually undergo the riskiest stage. They require many multidisciplinary specialists who will perform development and market research while developing the startup product. Many startups fail at this stage despite an outstanding business idea. One of the reasons is that they can't find the right specialists at the right time for sustainable project development.

To maximize project success and limit the risks associated with long-term contracts, many startups choose to hire dedicated software development teams to take care of their development needs. For example, your dedicated development team is quickly able to replace team members in cases of extended illness or other circumstances. In addition, your provider will be able to take care of project security by having secure NDAs in place with each team member in advance, so you only have to focus on one point of contact.

2. Businesses with a small budget

Only some businesses can afford to launch a full-scale in-house IT department. Therefore, instead, they turn to a more attractive option—dedicated development teams. This allows them to eliminate any extra costs, such as hiring, employee benefits, and more while having more transparency and accuracy in their spending.

Another reason for dedicated software development teams' popularity is the possibility of hiring IT specialists globally. There is a wide range of popular IT hubs around the globe that provide IT talent for much lower costs than local IT outsourcing companies. Therefore, many businesses from the US and EU search for software development specialists in other regions, such as Eastern Europe, Asia, and Latin America. According to Accelerance 2022 Global Software Outsourcing Trends and Rates Guide report, the hourly rate in these and other regions looks like: Central and Eastern Europe $21-$118, Southeast Asia $21-$61, South Asia $21-$81, Latin America $28-$105, and North America $49-$210.

3. Expanding companies

A fast-growing business requires intensive management and a lot of work power that allows companies to keep their service quality high while expanding to new markets or increasing the number of orders.

With a dedicated software development team, businesses can quickly hire the necessary specialists and better divide and allocate their tasks among teams. Moreover, they usually don't require much extra training and are ready to work immediately.

4. Established companies with specific projects

Hiring a dedicated team is an excellent opportunity to compensate for the lack of niche experts. Client companies can find appropriate software developers who specialize in innovative technologies or have specific tech stacks for their projects.

For example, IT outsourcing vendors can offer software developers with profound expertise in Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Machine Learning (ML), Virtual and Augmented Realities (VR/AR), and others.

This way, SMEs and large-scale businesses can swiftly launch their projects and fully realize their goals by having highly skilled specialists on their hands.

How Much Does Hiring a Dedicated Development Team Cost?

The pricing model for a dedicated software development team is usually based on hourly rates, which means that you pay for the number of hours each developer works on your project. The main benefit of this way of working is that the only cost you need to pay when you hire a dedicated team, as there are no additional expenses for office rent, equipment purchases, vacation or sick leave pay, taxes, or other overhead costs.

Using a dedicated development team can be more cost-effective and efficient than trying to hire individual developers or using an in-house team, as you don't have to worry about the time and resources required to find and onboard new team members. In addition, you can choose between hourly rates or a fixed price model to find the pricing structure that works best for your project and budget.

The cost of hiring a dedicated development team can vary based on several factors, including the team size, the technical expertise required, and the region where the team is located. It's essential to carefully consider these factors and work with a reputable software development company to ensure you get the best value for your money.

Dedicated Software Team Wrap-up

Here are some key points to consider when deciding whether hiring a dedicated software development team is the right choice for your business:

  • Dedicated teams can help reduce development costs and manage project processes effectively.

  • They can serve as a reliable partner who is able to fulfill their obligations.

  • A dedicated team is able to take a consistent approach to work and be available when needed.

  • They bring knowledge and expertise to the table or can find the right specialists to meet specific needs.

  • They are adaptable to fit your business needs, whether it's due to expansion, acquisitions and mergers, digital transformation, or something else.

  • They offer budget-friendly options, as your project budget can be adjusted to fit your needs.

Would you like to know more? Please let us know!

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