Main Facts You Should Know About Dedicated Team Model

Inna Coker
Talent Mapping Specialist

What Is a Dedicated Development Team Model?

A dedicated development team model is an outsourcing model for collaborating the client’s in-house specialists with a purposefully assembled remote team to achieve specified business goals. The term “dedicated” reflects the essence of this model: members of a dedicated team model are selected according to customer wishes and requirements, as they will be engaged only in this project.

If you collaborate with an offshore dedicated development team, you get a remote section of professionals with specific skills based on your requirements. In addition, you don’t have to put any effort into dealing with administrative, HR, tax, and social benefits issues with a dedicated team. That means you have more time to focus on your business goal and achieve it faster.

Such a collaboration becomes more popular every year, and there are some essential benefits.

 

How Does the Dedicated Development Team Model Works?

Let’s see how the dedicated team model typically works in different stages of its engagement:

Understanding project requirements: The client provides the project requirements and specifications to the dedicated team, outlining their goals and expectations.

Team composition: Based on the project requirements, the dedicated team model comprises professionals with the necessary skills and expertise.

Integration and communication: The dedicated development team model integrates into the client’s workflow, collaborating closely with the client’s in-house team.

Project execution: The dedicated team starts working on the project, following the client’s instructions, milestones, and deadlines. They may provide regular progress updates and seek feedback from the client to ensure alignment.

Scalability and flexibility: The dedicated team model allows for scalability, enabling the client to adjust the team size and skill set as the project evolves or new requirements arise.

Ongoing collaboration: The client and dedicated team continue cooperating throughout the project’s lifecycle. Regular online meetings, status updates, and performance evaluations help ensure transparency and accountability.

 

Benefits of the Dedicated Team Model

Getting dedicated development team services can be the best decision for your business and projects. There are some strong benefits. So, let’s have a closer look at them:

  • Flexible Cooperation

The dedicated team model provides flexibility in scaling the team size and skill set based on project requirements. Companies can easily add or remove team members, adjust workloads, and adapt to changing needs.

  • Wide Range of IT Experts 

Companies can leverage the dedicated team model to establish teams in different locations. This allows them to take advantage of time zone differences, access talent in specific regions, or expand their presence globally.

  • Cost-effectiveness

Implementing the dedicated development team model can be cost-effective compared to building and maintaining an in-house team. Companies should avoid hiring, onboarding, training, infrastructure, and employee benefits expenses. Moreover, hiring a dedicated team is much quicker and cheaper than independently searching for developers with the required skills.

  • Simple Scaling

In the initial phase of collaboration with a dedicated development team, the client decides how many specialists they need to hire for the project.  It is also easy to engage more specialists if required.

  • Quick Development Cycle

Because of cooperation with highly skilled professionals, you save relatively little time on training. In addition, dedicated developers quickly adjust to your projects and work full-time or part-time depending on your decision. These aspects help to develop your business momentum.

  • Focused Approach

Productivity is one of the advantages that helps companies gain a competitive edge in the current fast-moving software market. That is why it’s crucial to have an efficient team that will focus their effort on your project with the best results in mind. Dedicated software teams are all about productivity.

We’ve created a convenient table for you and gathered other great advantages of the dedicated team model, take a look:

What Are Benefits of Dedicated Team Model

Challenges of the Dedicated Development Team Model

Here, you can also see the most common challenges of the dedicated team engagement model, that important to consider before trying it for yourself:

  • Communication and Cultural Barriers

The dedicated team model requires your team to base in a different geographical location, there may be challenges related to language barriers, cultural differences, and time zone variations. Effective communication and coordination become crucial to mitigate these challenges.

  • Security and Confidentiality Risks

 Sharing sensitive project information and intellectual property with an external team carries inherent security and confidentiality risks. Companies must have proper legal agreements, data protection measures, and security protocols to mitigate these risks.

  • Potential Communication Gaps

Even with effective communication channels, there may still be communication gaps or misunderstandings due to language barriers, different communication styles, or a lack of face-to-face interactions. This can lead to delays, rework, or misalignment of expectations.

Hire a Dedicated Development Team – Get a Price

 

Dedicated Development Team Model Compared to Other Models 

Dedicated Development Team Model vs Fixed Price Model

The Fixed-Price model is where a client pays an agreed amount of money regardless of the hours worked or job done. This model is most favorable for the client, who has the opportunity to defer payment. It also works better for short-term small or medium-sized projects that are developed in several iterations with a fixed price and when there are clear project requirements and deadlines. 

The terms of work are clear, meaning that all the project conditions are discussed in advance between the client and developers. So the project is more likely to be finished in conformity with deadlines. There is also a lower risk of losing funds as the work cost is fixed and agreed upon in advance.

The main disadvantage of the fixed-price model is the risk of overpayment. Sometimes, the time and scope of work cannot be predicted. At any rate, you will have to pay the amount agreed in the fixed-price contract, even though the job may not have been delivered. 

The fixed price model will work for: 

  • Projects with clear deadlines; 
  • Determined specification;
  • Short – term projects; 
  • When there are no changes planned;
  • MVP development. 

Unlike fixed-price models, the dedicated development team model allows as much freedom and space for development as you need without overpayment.

 

Dedicated Development Team Model vs Time and Materials Model

The time and materials model involves payment for the time and effort spent on development — that is, for the actual time spent implementing planned project functionality, which is considered convenient, relatively flexible, and capable of adapting to any changes. 

Unlike the dedicated team model, the time and material model doesn’t have a predictable budget you would spend. And  it doesn’t guarantee you’ll work with the same team throughout the project. If some specialists don’t have enough tasks on your project, they can be appointed to some other project. 

The main advantage of a dedicated team model among the others is in its dedication. You can be sure that you get a professional dedicated team for your project that does not need to take up other assignments. 

But it will perfectly work for:

  • Projects with not fixed requirements.
  • If the clients would like to coordinate and get involved in the process of the developers.
  • Flexible projects and changes during the work are acceptable

 

Dedicated Development Team Model vs Team Augmentation 

Both models are pretty common when you need to outsource tasks to a remote team and cover the skill gap quickly and cost-effectively. However, they have some crucial differences: 

Dedicated Team Model  Team Augmentation 
Focus Cross-functional team assembly for specific projects, support with project planning, management, and development process optimization  Focus on sourcing, hiring onboarding IT professionals with administrative backing like payrolls, retention, etc
Benefits 
  • Cost-Efficiency 
  • Faster Time-to-Market
  • High Team Management 
  • Flexibility 
  • Lower Workforce Overheads 
  • Integration with in-house Team 
Better For 
  • Long-term project 
  • Startup projects 
  • Expanding in-house team 

 

What is the Dedicated Team Engagement Model 

The dedicated team model is a project outsourcing approach where a company hires a dedicated team of professionals to work exclusively on their project. This team usually consists of different profiles of specialists like:

  • Front-end engineers choose, install, and test a website or application’s user interface components. The front-end developer focuses on the components’ look and feel and functionality.
  • Back-end engineers – are responsible for business rule implementation logic, focus on web services and the data store, and work on the server components of multi-tier applications.
  • QA engineers – check the quality of technical design documents and specifications to ensure timely, relevant, and meaningful feedback.
  • DevOps engineers – collaborate with other developers to improve operations, development, and testing coordination.
  • Business analysts – provide executives and stakeholders with data-driven recommendations and reports by bridging the IT-business divide by evaluating processes, determining requirements, and so on.
  • Project managers – successful beginning, planning, design, execution, monitoring, control, and conclusion are the responsibility of project managers.

They are fully dedicated to the client’s project and work as an extension of the client’s in-house team.

In the dedicated team model, the client maintains full control and responsibility for the project while the dedicated team provides the required skills and resources to execute the project’s tasks and goals. The team members work closely with the client, following their guidelines, processes, and methodologies.

 

How to Calculate the Cost of Dedicated Development Team Model?

The pricing model for a dedicated team is quite simple. First, you should consider the salaries of your dedicated developers. Then you plus your vendor’s worth, and that’s pretty much it. The big advantage is that you don’t have extra expenses on renting an office for an offshore dedicated development team, equipment, taxes, etc.

Also, it is much cheaper to hire a dedicated team, than to look for each professional independently with the HR team.

 

Why Outsourcing Software Development to Dedicated Team is in Demand?

According to Technavio, a market research and advisory company, the IT outsourcing market size has grown to $98 billion from 2020 to 2024. As a result, the need for qualified software developers is increasing momentum. However, it is pretty challenging to find enough software developers with specific skills and reasonable salary expectations to meet the demands of your project. As a result, many companies focus on IT staff augmentation services and hire offshore dedicated development teams.

The main character trait is that outsourcing vendors are responsible for building a team following your requirements. This team works solely on your project with both parties (client and vendor), is deeply involved in the operational workflow, and considers all critical issues. It’s a pool of outsourced specialists who are part of a client’s company for a certain period.

Moreover, a dedicated software development team completes the development of the product itself. Still, the section also addresses other aspects of the software development lifecycle (SDLC), including QA testing, project management, and user experience (UX) design, depending on the specific product they’re creating.

This is one of the significant outsourcing models in the marketplace.  In this case, the dedicated team works independently until the project’s completion, which works perfectly for long-term projects. However, the client can still provide oversight and receive frequent communication on the project’s status from their outsourcing partner.

 

When Does Your Company Need a Dedicated Development Team Model?

Hiring an offshore dedicated development team is a great option for those who like to have their focus on core business and prefer to pass responsibility for their IT projects into the hands of software development professionals.

Ultimately, if you’re looking for a flexible, fully integrated, predictable engagement with an outsourced partner, a dedicated development contract with a vendor could be the right choice.

  • Perfect for startups

Is a startup looking to establish a development team quickly? A dedicated team engagement model is typically less expensive than hiring local developers and expanding the in-house team. When hiring a development team, you can save money by not renting a workspace. Not having to look for local talent will also save you time.

  • Your requirements are not fixed 

The dedicated team model provides time and resources for you to focus on the discovery stage with no fear of overspending. The dedicated team will focus on business idea market-fit. 

  • You are a long-term project 

To unleash the full product potential, you need a strength of dedicated development team throughout the project completion. You must stay sure that the specialists you work with will stick with you to the end. This is exactly what this model guarantees.

 

Who Doesn’t Need a Dedicated Development Team?

Despite having many benefits, hiring a dedicated development team isn’t a lifesaver for all businesses. Here are some reasons why you don’t need a dedicated team:

  • Short-term projects

If you have a small or short-term project with clear conditions you probably don’t need to hire a dedicated team. Dedicated teams are for long-term, flexible and ever-evolving projects, so it is unreasonable to work with them occasionally both in terms of expenses and human resources use.

  • The solution is not universal

Teams are created for long-term collaboration, which requires signing a contract. If you do so before estimating your project’s exact needs, this decision may turn out to be rushed and unwise.

  • Limited time and budget 

If your budget does not really allow you to hire developers full-time, maybe hiring a dedicated development team won’t be the best idea for your project. It doesn’t break your budget like if you were hiring each developer separately and it is definitely quicker.

 

What Countries are Best for Setting Up Your Dedicated Development Team Model?

Now when you have decided to hire a dedicated web development team it is time to choose a destination. The range of software engineers is comprehensive, and in your interest to find professionals who will fit your requirements and a budget. Suppose you would like to hire a team with attractive salaries, a perfect time zone, outstanding skills, and education. In that case, you won’t have any problems with communication as the developers from there are familiar with English. We would recommend having a look at a dedicated software development team in Eastern Europe and Caucasus Region. There are some tangible benefits why those regions have the best developers for your business: 

  • Wide Range of Highly-skilled Professionals

Eastern Europe and the Caucasus region are a huge talent pool of software engineers with diverse skills. Be it Java, Python, or Ruby, and you’ll find the needed talent from one of the many Eastern European countries. The region’s performance confirms the quality of education. A study  found Poland, Ukraine, Romania, Hungary, and the Czech Republic to be in the top 10 countries for programmers worldwide. In addition, Eastern Europe is a hotbed for IT outsourcing among Western European and American businesses. Eastern Europe is a high-growth region with excellent digital infrastructure, innovation, and, most importantly, talent.

  • Affordable Rates 

One of the critical aspects is the financial affordability of this region. The average hourly rates of professional software developers are lower in Eastern Europe than in the US, the UK, and the majority of Western Europe. In addition, the competition for tech talent in Eastern Europe is much lower than in Western Europe or the USA.

  • Convenient Time Zone

The difference in time zones between Eastern and Western European countries is approximately from 2 to 3 hours. This enables IT vendors to visit their clients within a few hours. There are also direct connections with major US cities. Although travel time obviously takes longer, the maximum time difference of ten hours still makes it possible to set up efficient cooperation with the help of daily sync-ups and flexible working hours.

  • Cultural Similarity

A cultural affinity, shared language, and direct style of communication make it easier to reach an initial understanding and drive results. This alignment helps to streamline the workflow, improve vendor management, and reduce costly misunderstandings. Moreover, Eastern European providers usually follow international business codes of conduct, which makes it easier to set up transparent and efficient cooperation.

 

FAQ

What Is a Dedicated Team Model?

A dedicated development team model is an outsourcing model for collaborating the client’s in-house specialists with a purposefully assembled remote team to achieve specified business goals. Members of a dedicated team model are selected according to customer wishes and requirements, as they will be engaged only in this project.

What Does A Development Team Do?

A dedicated development team finds the product-market fit, builds the UX and UI design, writes the code, and provides quality assurance and product maintenance.

What is the Development Team Model Structure?

A typical software development team is structured by specialists with broad skill sets and expertise: 

  • Project managers (PMs)
  • Business analysts
  • Frontend and backend software developers
  • UI/UX designers
  • Quality assurance (QA) engineers
  • DevOps engineers

 

Final Thoughts

As you can see, a dedicated development team can be your business’s best idea and help you boost your projects. You will be able to meet great people who focus on your projects from day one. The model of dedicated teams are convenient for most tasks and budgets. You will get a team of professionals that will develop your business faster, and it’s all remote, with no extra expenses like renting working spaces. Moreover, you can decide how many developers will work on your projects, and you can hire more or reduce if needed.

If you still have questions about hiring a dedicated development team for your business, don’t hesitate to message Qubit Labs. We will provide you with any information you need to make a decision.

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Inna Coker
Talent Mapping Specialist

I believe that the IT sector is one of the most promising fields in the world.
That’s why I have been researching for skilled IT professional and analyzing different IT markets and tech hubs worldwide for more than 3 years. I enjoy analyzing information and creating it into sapid articles.