A dedicated development team is an outsourcing model used in software development involving a client and a service provider. The work is mainly done remotely, with the client having full control over the team. Being highly cost-effective and efficient, this model works well for both established companies and startups.
Producing a high-quality software product demands a high level of input and resources. In addition, post-launch support for monitoring and troubleshooting is crucial to maintain functionality. Outsourcing to a dedicated development team can prove beneficial for businesses lacking expertise. Moreso, not in a position to hire an in-house development team.
This article will discuss the different outsourcing pricing models when it’s right to hire a dedicated team and its advantages over other pricing models.
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Members of a dedicated development team
Hiring a dedicated development team with experience is essential to business success. You’re able to work with skilled engineers who can seamlessly integrate into your organization. Not to mention, having the right team behind you saves resources, provides a competitive advantage, and allows you to develop a successful software product.
Here’s a list of specialists responsible for bringing your software product ideas to life.
- Project managers
- Product managers
- Front-end and back-end developers
- UX/UI designers
- DevOps engineers
- Full-stack engineers and mobile developers
- Quality assurance specialists
Outsourcing pricing models
Fixed price (FP) model
In a fixed price model, a service provider normally sets a standard rate for their services. This model is most suitable for short-term projects with a clearly defined scope and requirements.
The main problem with the fixed price model is that you can’t accurately predict the scope of work or the time taken to complete the project. This means you may end up paying even though the quality of work is low or the project was delivered late.
Time and materials (T&M) model
In the time and materials model, a client only pays for the time and resources spent on a project. This is beneficial if they don’t have clearly defined requirements or the scope of the project is still unclear. The pricing model is negotiable and low risk for both parties with the ability to employ hourly, weekly, or monthly rates for resources spent on a project.
The main disadvantage with this model is the risk of a client running out of money. This is because adjustments made in the project may result in a rise in costs that may not have been accounted for. Additionally, monitoring the time and resources spent on the project can be time-consuming, and there can be an oversight.
Dedicated development team model
In this model, a client outsources software development to a service provider with in-house professionals on a long-term basis. The beauty of having dedicated team development is that, unlike in-house employees, you don’t worry about administrative overheads, employee perks, IT infrastructure, office space, tax, and recruitment.
Clients can manage the hand-picked group or instruct the service provider to assign a project manager. The model is suitable for projects that are not clearly defined and where requirements can change during the development process. The main benefit is that you get a team solely dedicated to fulfilling your project on a long-term basis at a cost-effective rate.
When is it right to hire a dedicated development team?
When you have a long-term project
Projects that require a longer timeframe to complete are perfect to hire dedicated development team. They can manage any complexities that arise and changes in project specifications. In summary, they can effectively handle any expansion the project will require. In addition, the hand-picked group is in it for the long haul meaning they’ll see your project through to the end.
If you’re an early-stage startup
At this stage, outsourcing is crucial for a startup’s success as the main focus is on growth. It can save on expenses and resources required to hire and manage an in-house development team. The dedicated team can produce products quickly and lower overhead costs, which can be redirected to other areas of the business.
When you’re project is still in the discovery phase
The discovery phase is the early stage of a project where it is fully mapped out and tested before a viable product goes into development. At this point, goals and requirements are set, there is an assessment of product-market fit, a prototype is developed, and testing occurs.
Having a dedicated team for this stage alleviates pressure as it can take months to have a viable product, but they will stay with the client for the duration it takes.
Advantages over other pricing models
Save time and money
Although it costs more to hire a dedicated development team, overall, it is more cost-effective. The initial investment made in hiring a dedicated team will rarely change unless there’s a significant shift in the project. The service provider handles costs related to recruitment, administration, taxes, infrastructure, utilities, and employee benefits.
In regards to time, you’ll have less to worry about knowing there’s a group of experts that are fully committed to the project. This frees you up to focus on other areas of your business and periodically receive a status report.
Transparency and control
When pricing is calculated, there’s complete transparency on tasks and time allocated for their completion. Additionally, a client is able to view salary allocations and other costs related to the project. Clients can also communicate directly with their team and receive updates on milestones or challenges whenever they choose to.
Access to high-quality talent
Working with a dedicated team ensures you gain access to the expertise your business is lacking. You get specialists with experience in different verticals that can help bring your idea to life. In turn, the development process is streamlined for the most favorable output. Basically, with high-quality talent comes improved efficiency, which in turn leads to outstanding results.
Managing the development process is easy
With a dedicated team, the client has free reign to be hands-on or hands-off during the development process. They have complete control over the team and the recruitment process. They can choose to manage the entire project or leave it up to the service provider’s project manager. In any case, the client has the final say.
However, having already set goals and requirements, the team is capable of working with minimal supervision. This makes it easier for a client to communicate and manage the dedicated group remotely.
Conclusion
Companies are constantly seeking out IT specialists to help them stay relevant in the digital era. Unfortunately, they may be unaffordable in their region or hard to come by. This leaves gaps in fulfilling business objectives and leads to underperformance. In this regard, IT outsourcing is continually proving to be a crucial part of business strategy and driving growth.
The ability to work remotely means an IT company from anywhere in the world can have a dedicated development team for hire. As long as they display the expertise needed to handle a task and provide a reasonable rate, they can work with other businesses worldwide. This significantly improves the success rate for companies looking to fill software development gaps.