How to Hire a Dedicated Software Development Team: Everything You Need to Know
The pandemic has caused a lot of chaos since its outbreak in 2019. However, one good that came out of it is that outsourcing has become an even more viable and attractive option for businesses. Many businesses, including big players like Microsoft, Facebook, Skype, and Google, realized the benefits of hiring dedicated software development teams to maintain their business processes and took the course in leveraging remote talent.
Even if your company isn’t as well-known as Google, hiring a dedicated development team can benefit you. Not only can you cut down overhead costs, but you can also tap into the diverse tech not available locally and take your business to the next level under the guidance of an experienced team.
In this article, we’ll tell you how the dedicated development team model works, what benefits it brings to the table, and how it differs from the other cooperation models. We will also give you some practical advice on how to hire a dedicated software development team that suits your project needs best. Let’s jump right into it!
What Is a Dedicated Development Team?
A dedicated team derives its name from the fact that it dedicates all of its time and effort solely to one client and one specific project it is hired to work on. Typically, a company approaches a software development partner with a request to bring in a team of software developers, project managers, designers, QA engineers, or other IT specialists to collaborate on a specific project.
Based on the requested tech stack, skill levels, and experience in a certain domain, the outsourcing company forms and provides a dedicated development team that meets the specified requirements best. Working with dedicated teams feels pretty much like working with in-house employers. The difference is that you don’t have to worry about administrative work, taxes, sick leaves, vacations, social benefits, and other issues, but instead can focus on high-priority business tasks that require your attention.
The Composition of a Dedicated Software Team
The composition of your team may vary greatly depending on the project objectives and technical requirements. For example, if you have an in-house development team, but you don’t have resources for testing and there’s not much sense in new hires, you can opt for a dedicated team of QA engineers to do testing. Another example is if your internal team is busy with critical stuff and you need to speed up development, you can hire an augmented team of software developers to work alongside your existing team.
In general, the typical dedicated team structure that handles a project from start to finish includes the following roles and responsibilities:
- Business analyst — creates technical requirements and specifications for the future product;
- Product manager — coordinates the team and communicates with the client, ensuring that the project is accomplished in accordance with Agile practices;
- Project manager — defines user’s needs and makes sure the product features address these requirements;
- UX/UI designer — creates user interfaces that meet both business and technical requirements of the product;
- Tech lead — manages a team of front-end and back-end developers and oversees the development process;
- Frontend developer — implements UX/UI designs;
- Back-end developer — creates and maintains back-end development on the server side to support the functioning of user-facing applications;
- Mobile developer — creates UX/UI designs for mobile applications;
- QA engineer — checks the product for compliance with established quality requirements, identifies bugs and defects, and eliminates logical errors to ensure uninterrupted user experience;
- DevOps engineer — streamlines the development process, handles deployment, and ensures the software is efficient, scalable, and secure.
You don’t necessarily have to hire all of these roles for every project, though. Here at QArea, we carefully estimate the project requirements before suggesting the ideal team size. In our experience, many projects can be efficiently and affordably handled with just a select few key roles. In addition, we can offer a combination of two or more collaboration models to help our clients save even more.
So, before you dive headfirst into a contract, be sure to sit down with the outsourcing company and talk through the requirements of your project. This way, you can avoid overpaying for roles that might not be necessary for your particular project.
We can help you estimate the team size perfect for the needs of your project. Don’t hesitate to arrange a short call!
How the Dedicated Development Team Model Works
Now, let’s take a look at how the dedicated development team model works in detail and what needs to be done to build a team. Here are the key steps:
- The client outlines their key goals, the required technologies, skills, and experience in the project’s domain, as well as the preferred development methodology and team size.
- The outsourcing company conducts a thorough analysis of the request, maps the expertise, and provides the client with a list of candidates and engagement options that accurately meet the project specification.
- After the candidates have been interviewed and the parties have reached an agreement on the management processes (environment, schedule, accounting, communication, etc.), the dedicated development team is all set up and ready to get started.
- Now, the client has full control over the dedicated development team, their time, and work, while the outsourcing company handles administrative support and ensures that the project’s needs are met in full.
How the Dedicated Team Model Is Different From Other Engagement Models
Above we looked at the basic algorithms of actions. However, there are a few peculiarities typical of the dedicated model, including:
- High level of control. Unlike other business models, this one gives the client complete freedom in assembling the team and choosing team members. You yourself conduct interviews, conduct candidates’ evaluations, and decide on task assignments.
- Enhanced project clarity. When the team works exclusively on one project, there’s less of a risk of misunderstanding the requirements of the project. As a result, the development process tends to be more streamlined, and the end product aligns closely with your expectations.
- Scalability. What’s also important is that the team size can be easily scaled up and down during the development process as you see best fit. For example, with dedicated teams, you won’t pay for QA until a team of testers is involved in the project, nor will you need to worry about finding a job for UX/UI designers once their work in your project is done, which gives a lot of flexibility.
Reasons to Hire a Dedicated Team
Outsourcing has become increasingly popular, and the numbers prove it:
- 64% of services outsourced are related to software development;
- 37% of SMBs outsource at least one of their business processes to remote teams;
- 92% of G2000 companies rely on outsourcing for their day-to-day operations.
As we look into the future, we can definitely see these numbers grow as more businesses recognize the benefits of outsourcing. It’s already been predicted that the total market size will hit a staggering $587.3 trillion by 2027, which is a huge increase from $430.53 trillion in 2023.
Aside from the fact that outsourcing will soon become a core business strategy for many, there are several compelling reasons why you should consider hiring a dedicated team for your project. Let’s look at them more closely.
Focused Approach and High Team Engagement
One of the most remarkable advantages of a dedicated development team is its focused approach. Basically, the team becomes part of your organization and shares your company’s objectives, values, culture, and policies. Team members work according to your preferred management practices and methodologies and are focused solely on your project and business goals. This high level of commitment allows the team to gain a deeper understanding of your business needs, making them very efficient in achieving your goals.
Cost Efficiency and Instant Access to Talent
Assembling a team for a project can be very time-consuming and quite taxing on your budget. You need to spend a lot of time and resources looking for candidates, evaluating their hard and soft skills, and checking their experience. In addition, you have administrative expenses, such as office space, management, equipment, training, HR, and IT support, which can be quite strenuous for startups and SMBs.
When hiring a dedicated development team, however, you don’t have that headache. The team is formed for you, and everyone has everything necessary for work, eliminating the need to buy expensive laptops, hardware, communications equipment, testing devices, and so on. This way, you won’t need to spend nearly as much as hiring in-house and still get the same, if not better, results.
Direct Control Over the Project
As a client, you can get direct control over the selection, motivation, and management of the dedicated development team, including everyone — from coders and designers to project managers and business analysts. Basically, this means you’ll be in charge of determining the schedule and workload for each member of the team as well as setting up workflows, communication, task management, progress tracking, performance evaluation, etc.
No wonder many people compare working with dedicated teams to working with in-house developers since the level of control over the development process is pretty much the same. At the same time, you don’t necessarily have to be in charge of all the processes if it’s not something you want. You can always leave the micromanagement to your dedicated project manager to have time to focus on the bigger picture.
Increased Productivity and Adaptability
In today’s fast-paced software market, productivity and speed of development are significant competitive advantages. However, these two things don’t just come up like that. It’s important to start by building a high-performing team and focusing on one project (multitasking is a productivity killer), good teamwork, and flexibility.
That’s where the dedicated team model ticks every box. The dedicated development team members are fully committed to your project and their assignments. They tend to get along well because they’ve spent a good share of time working together on different projects. Plus, they are usually more motivated and productive because they know that if things go awry, they can rely on each other.
No less important is the fact that team composition can be tailored to the unique needs or scale of your project, so you can get the most out of your resources and maximize the project’s efficiency.
Ongoing Support for a Long-Term Project
One of the most remarkable advantages of hiring a dedicated software development team is that they can provide you with ongoing support, which is particularly important for long-term projects with the potential to expand. This way, when the time comes to introduce new features or updates to the project, you’ll be able to do it quickly without waiting for a new team to ramp up. Moreover, it’ll be much easier to ensure the consistency and quality of the project when the team that initially developed it is still on board.
Access to a Wide Pool of Talent
Recruiting isn’t easy. It takes lots of time, effort, and resources. However, the biggest challenge lies in finding the right people with the right expertise, especially in narrowly focused knowledge domains, like, for example, AI, blockchain, and quantum computing. Quite often, these people are simply not available locally, making it impossible for companies to innovate.
To overcome this hurdle, companies can look into hiring an offshore dedicated team. The strength of outsourcing companies is that they have extensive teams of developers well-versed in cutting-edge technologies, allowing you to swiftly assemble a team that meets your project’s requirements.
Accelerated Time to Market
Last but not least, with a dedicated team, you get a competitive advantage in terms of speed. Because these teams are already formed, it typically takes significantly less time to take a product from evaluation to completion, making this model an attractive choice for those who prioritize speed.
By entrusting your software development in the hands of professionals, you can leverage these benefits and position your business for success in an increasingly competitive and dynamic marketplace.
Dedicated Development Team vs Fixed Price Model
Quite often, the dedicated model is confused with the fixed price outsourcing model. However, these two forms are not the same. The fixed price model, unlike the dedicated model, implies paying a fixed amount of money for the entire project, no matter how many hours it will take. Payments are typically tied to project milestones or a lump sum upon project completion, and the timeline is established right from the outset. If anything goes wrong and the work is not executed on time, it will be the responsibility of an outsourced team to work longer hours to finish the project.
Without a doubt, this model is the safest of all, as there’s no risk of hidden costs and overpayment. On the other hand, it’s not without its own share of challenges and limitations. Here are some key considerations when comparing the dedicated development team and the fixed price model:
| Dedicated team | Fixed price model | |
| Budgeting | Offers flexibility, as you pay for the actual hours worked and resources used | Provides budget predictability as you know the total cost upfront |
| Scope management | Easily accommodate scope changes and adjustments | Scope changes can be difficult and often require renegotiating the contract |
| Risk sharing | Shares project risks with the outsourcing partner | The client typically carries more risk, as any unforeseen issues may result in additional costs. |
| Flexibility | Offers high flexibility | Offers limited flexibility |
| Control and oversight | Provides more direct control and involvement | Typically involves less direct control over day-to-day project activities |
| Best suited for | Projects with evolving requirements where priorities and requirements may change throughout the project’s lifecycle | Short-term projects with a fixed scope and a clear understanding of deliverables; MVP development |
As you can see, the fixed price model, despite its numerous benefits, doesn’t allow the flexibility of a dedicated team model, making it less suited for long-term projects that may require adaptability down the line. What’s more, it also carries the risk of potential cost overruns if the project encounters unexpected challenges or scope changes, while the dedicated team model offers a more dynamic and adaptable approach.
Dedicated Team vs Time and Material Model
Along with a fixed price, there’s a time and material business model that is often compared to the dedicated development team model. Similarly to the dedicated model, it suits projects where requirements may change, but it’s distinct in several ways. Let’s compare these two models side-by-side:
| Dedicated team | Time and Material | |
| Budgeting | Payment on a pre-agreed monthly or hourly rate | Payment for the actual hours worked and the resources used |
| Scope management | Easily accommodate scope changes and adjustments | Suited for projects with evolving requirements, where scope changes are expected |
| Risk sharing | Shares project risks with the outsourcing partner | The client carries a larger share of the risk as costs can fluctuate based on the project’s progress and changes |
| Control and oversight | Direct control over product development | High engagement in the process |
| Best suited for | Long-term projects with evolving requirements | Projects where requirements may change quite often |
Although it may seem that these models have a lot in common, this isn’t entirely true. The main pitfall of the time and material form is that it doesn’t guarantee that the team you start working with will stay on the project until the end. If some specialists have completed their tasks and have no other work, they may be involved in a new project with a different client.
A dedicated model, on the other hand, means exactly what it says on the tin. You get a team of specialists who work exclusively with you and skip all other assignments. For businesses with large-scope software development projects and a need for control, this model proves to be the best choice.
When to Hire a Dedicated Software Development Team
As we’ve mentioned before, each model has its own pros and cons, and what may work for one business may not work for another. So, before making a decision, let’s look at the most common scenarios in which companies benefit the most from hiring dedicated development teams.
If You Are a Startup
If you’re a startup looking to grow and launch your product fast, you can greatly benefit from a dedicated developers’ team. Startups often have limited resources and need to move quickly to gain a competitive edge. That’s where a dedicated team comes to the rescue. As the team is already formed and has the specialized skills and expertise needed for the project, it can help expedite the development process and bring your product faster to market. On top of that, it rids you of the recruitment costs, allowing you to save some money.
When You Lack In-House Expertise
If your internal team lacks specific expertise or skills required for your project, a dedicated development team can bridge that gap. The distinguishing feature of these teams is that they are composed of professionals with diverse skill sets, ensuring that your project has the necessary technical knowledge to succeed.
The Project Doesn’t Have Clear Requirements
For projects with unclear or evolving requirements, a dedicated team offers the flexibility to adapt and refine the project scope as it progresses. Moreover, their expertise and experience can guide you in clarifying the project’s requirements and making the necessary adjustments to ensure the final product meets your expectations.
Long-Term Projects
Companies that plan to work on a project for a long time would find it much more beneficial to work with the same team from start to finish rather than go through the recruitment process every time there’s a need to implement new features. First things first, they wouldn’t waste any time waiting for the team to learn the project documentation before they can get down to work, which will significantly speed up the project’s pace and progress.
Additionally, when a company commits to a long-term project, it fosters a sense of ownership and accountability within a dedicated team. Plus, working with a dedicated team for the duration of a long-term project results in cost savings due to the reduction of recruitment and onboarding expenses. Many companies, including Amazon, WhatsApp, Buffer, etc., use dedicated project teams as a key strategy, which shows the efficacy of this approach.
Aren’t sure if a dedicated software development team model is suitable for your project? Share with us your details, and we’ll help you choose the best solution!
How to Hire a Dedicated Development Software Team
If hiring a team of dedicated developers is your first rodeo, don’t fret. Further down, we’ll walk you through the essential steps required to build a dream team that will deliver to your expectations.
- Define Project Requirements
Before you set on a journey searching for development companies, start by analyzing the needs and requirements of your project. Dig deep into the heart of it, define basic necessities and try to predict upcoming issues. A good idea is to organize meetings and QA sessions with the product owner to gather as much information about the product as you can.
- Assess the Potential Amount of Work
Once you have all the information about the project at your fingertips, try to assess the potential amount of work. By doing this, you’ll be able to estimate the available workforce and professional capacity. This step is important because it helps reveal gaps that may have been overlooked in the initial planning stages.
- Outline Your Team Structure
Now that you know your strengths and weaknesses, you can make necessary adjustments to your strategy. Again, don’t run headlong into hiring. Gather your top specialists and team leads first to discuss the current professional demand with them. Tell them exactly what kind of specialists you want, from their professional skills to their personal qualities. This will help outline your potential software development team structure. After this, you can finally set up a meeting with HR specialists and share your requirements with them so that they can start the search.
- Conduct Interviews
Finding the right dedicated team isn’t easy. In fact, if you completely shift the responsibility for selecting a team to the HR department, the process can easily take months, which will benefit neither you nor the candidates, who may simply get tired of such a long recruiting journey. Therefore, it’s best to conduct interviews together with your technical partner to choose a dedicated team with the skills you need and speed up the process.
- Pick Your Management Style
When you are ready to hire a dedicated team, think about the management style that best meets the needs of the project and your business objectives. How much control do you want to have? Are you going to have a project manager to share responsibilities? Or you’d rather manage the whole team yourself? The answers to these questions will help you choose the right development project management style.
- Launch a Team
Finally, you can pay the experts who’ve helped you find a dedicated software team and sign a contract. Also, you may want to sign an NDA with each specialist on the team to ensure the security of your project and sensitive information. This step marks the official launch of your team.
In the end, let’s summarize the key criteria for successful hiring. Essentially, they come down to three main factors, such as:
- Defining clear requirements (both professional skills and personal qualities);
- Performing fast middle-level technical tests;
- Arranging face-to-face or online meetings with an HR specialist, a team lead, and team members.
Communication and Relationship in a Dedicated Software Development Team
When the team is assembled, it’s important to invest some time in strengthening the bond between team members because although they may know each other, they may not necessarily have interacted before. Here are a few practical tips that can help simplify and speed up the “stormy period” in the team’s development:
- Establish clear roles. Specify each member’s role in detail and explain what exactly you expect from them. This will bring confidence and clarity.
- Foster open communication. Encourage them to ask questions and be sure to answer them. Whenever employees have any doubts, they should be able to voice their concerns. It’s much better and more efficient to solve a potential problem at the very beginning rather than let it grow into a big bug.
- Boost inside-team communication. Even though each person has their own responsibilities and assignments, it’s crucial to encourage inner communication among the members of a software development team. Most likely, more experienced professionals have already dealt with difficulties that arose during the work of novice developers. Providing colleagues with expert advice assures friendly relationships and family-like bonds.
- Encourage active participation. Hold meetings that discuss progress, mistakes, and feedback. Do not underestimate the importance of these meetings: if you delay them, your chances of facing bugs, misunderstanding, tech debt, and re-work increase automatically.
- Be inspiring. Inspire workers to look for creative solutions and pick up challenges together. No doubt, overly creative solutions lead to system complexity sometimes. But at the same time, this helps the team learn from their own mistakes. So they will easily avoid them in the future.
- Acknowledge and celebrate successful steps. It is incredibly important to demonstrate appreciation for the work your employees do. This will help them feel useful and valued and motivate them to work even better.
- Empower your team. All the previous actions lead to this one. Team empowerment guarantees that its members share and follow the same goals and ambitions as the whole organization. They do not work in isolation but operate pursuing the company’s interests that equal their own, as far as they feel like part of a big family that works, improves, and thrives together.
Transparency and clarity are best friends when it comes to setting goals for a software development team. When employees know what they’re expected to do and feel support and trust, good results won’t take long to arrive. Empowering is vital here. Team members shouldn’t be afraid to propose their ideas and have the right to take responsibility for their decisions after getting the team’s approval.
This approach assures mutual profit for all the parties. The company delivers an amazing product that satisfies clients’ needs, and the employees increase the pace of their professional development.
Average Dedicated Team Cost
The cost to hire a software development team can vary significantly depending on factors such as the location of the team, the experience and expertise of the team members, the team size, and the complexity of the project. Whether you decide to offer any additional perks and benefits like healthcare insurance and training will impact the cost, too.
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