Can the Dedicated Team Model Benefit Your Business? Definitely!

What is the first thing that crosses your mind when you hear the words “dedicated team”. This is probably a group of people working to their fullest potential maybe even under one roof. If so, you accurately understand the role that dedicated teams have in software development.
This dedicated teams model represents a strategic partnership in the outsourcing arena, where a client collaborates with a service provider to form a team of remote IT experts. These experts are carefully selected to meet the client's specific needs in terms of skill and experience, fully committing themselves to the success of the project.

It's important to recognize that setting up a perfectly matching dedicated team involves initial time investment. Yet it may seem like investing in recruiting rather than software development is not the smartest solution, take your time to understand. Jumping into a project without proper groundwork can lead to unanticipated costs and delays. That's why initiating any significant IT project should begin with a well-planned discovery phase, an approach central to the benefits of the Dedicated Team Model. One of the benefits of dedicated team model here is that you don't need to handle this phase internally. Leverage the expertise of a dedicated external team to ensure a solid foundation for your project.

Why hire a dedicated team?

A dedicated development team has become a popular choice for companies looking for faster development, reasonable costs, and extensive expertise. Dedicated engineers, QAs, designers, and project managers will perfectly suit a dynamic project where tasks and requirements can change during the SDLC.

This team can operate both independently or serve as an extension to the client’s in-house one. But that’s not all; the dedicated team model offers many more advantages.

Costs reduction

Partnering with an outsourcing provider that offers dedicated team services is a more budget-friendly option compared to building a full tech team in-house. One more advantage of dedicated teams model is that it typically features clear and fair pricing, where clients pay monthly fees based on the team's size.

Flexibility and scalability

The dedicated team model is dynamic and scalable. If you need to finish your project sooner or add functions mid-development, just add extra specialists to the team. You can always reduce the staff when you don’t need so many team members anymore.

No infrastructure headaches

Dedicated teams model takes the burden of organizing workplace from your shoulders. Outsourcing vendor handles responsibility for all work arrangements – from organizing work space to training, onboarding, and even the management of vacations and sick days. After all, the thing you want to think of in a busy software development process is administrative burdens.

Focus on your goals

A dedicated team, true to its name, focuses solely on your business goals and the objectives of the project. Team members are carefully chosen to ensure alignment with your vision, working collaboratively towards the realization of your project.

As much control as you want

You have the option to oversee the dedicated team directly, including participating in meetings and selecting team members. Alternatively, if time constraints exist, a dedicated project manager can handle these responsibilities, allowing you to concentrate on business growth.

Dedicated Teams Model: Pros and Cons to Consider

The Dedicated Teams Model stands out with its own spectrum of compelling benefits and notable challenges. This makes it a particularly intriguing choice for specific kinds of projects and makes others seek better hiring solutions. Let’s overview some of the advantages and pitfalls of the dedicated teams model to help you make an informed decision.

Pros of Dedicated Team

Access to Specialized Skills: dedicated teams open horizons to a global talent pool, offering skills that might be scarce or expensive in your local market. For instance, companies often outsource to Eastern European countries, especially Ukraine, due to its rich talent in software development at budget-friendly rates.

Cost-Effectiveness: Compared to the expense of hiring full-time employees which includes salaries, benefits, and workspace costs with dedicated teams you don’t have to splurge. In fact, hiring external teams can lead to savings of up to 60% on labor costs.

Flexibility and Scalability: This is particularly beneficial in industries like tech, where project demands can fluctuate rapidly. Enhance your team with lacking talent when there’s such or scale down if you no longer need the resources engaged.

Focus on Core Business: A dedicated team takes control of the entire process of software development. It enables companies to redirect their attention and resources toward innovation and strategic growth areas,

Enhanced Project Control: Unlike traditional outsourcing, where you may have limited oversight, the dedicated teams model offers more control over the project, similar to managing in-house teams.

Long-Term Collaboration: The dedicated team becomes deeply familiar with the company's culture and processes over time. One of the most notable examples is Google's long-term collaboration with some of its outsourced development teams.

Let’s Discuss the Drawbacks

Higher Initial Investment: Setting up a dedicated team involves initial costs like recruitment, training, and setting up communication channels. This upfront investment can be significant, especially for small businesses.

Management and Coordination Effort: Because dedicated teams often work offshore, controlling the development process requires effective project management skills. Business owners used to gathering the team under one roof may find it challenging to set up a smooth coordination.

Cultural and Communication Challenges: Time zone differences can negatively affect productivity. For example, a company in the U.S. working with a dedicated team located in Ukraine might face an average 7-8 hour time difference, complicating real-time communication.

Confidentiality and Security Risks: Data security can still be an issue with an outsourced development team. Passing sensitive information to external specialists may result in data breaches – either unintentional or deliberate ignorance of security protocols. A basic advice when engaging dedicated teams, is to sign an NDA (non-disclosure agreement) where you’ll set out a set of rules related to the protection of private or sensitive data.

The bottom line

Is an in-house tech team preferable to a dedicated team? There's no one-size-fits-all answer. However, it's certain that your business can reap significant benefits of dedicated team model provided partnering with the right outsourcing vendor.

If you’re on the lookout for a development team for a complex project and are uncertain about how to proceed, contact Perfsol. We're here to assist you in assembling a team that will develop your ground-breaking software!