Here in this guide, we will look into when a dedicated development team is a good choice, when you should not hire a dedicated team, how it differs from other models such as Fixed-price and time and material frameworks. The entrepreneurs, CTOs, and CEOs can figure out here how they can set up, successfully persist, and manage their hired dedicated development team offshore.
We will also cover the dedicated development team rates globally, which will aid you in deciding your development partners.
Introduction: Dedicated Development Team Model
A dedicated development team is a business partnership agreement that is mostly implemented in the software development arena for remote collaboration between a client and (IT software development) service provider. To be more precise, the service provider offers software development professionals to its client for the long term.
These professionals are chosen as per the demands and requirements of the client based on their skills and expertise. The client can decide to handle the team from their end or even assign the same to the service provider’s project manager to cope with the communication process. This is known as a dedicated team. While the team generally works from the service provider’s office, this model is transparent and effective. It is ideal for well-grounded organizations and developing startups.
Dedicated Development Team VS Other Engagement Models
Once you make your decision to partner with a firm that provides software development services, the immediate bed move involves selecting an engagement model that suits your company’s needs. Selecting a suitable model is important as it determines the success and failure of your professional collaboration and relationship.
Generally, there are 3 types of engagement models
- Fixed-price model
- Time and material
- Dedicated Development Team Model
When the matter is about choosing which of the engagement models matches with the Business demands and requirements, you need to have a clear piece of knowledge about the three engagement models.
Fixed-Price Engagement Model
As the name suggests, the model is fixed. The fixed model involves having a clear vision of the project requirements, deadlines, and objectives that require to be achieved. Everything involves a thorough analysis and calculations earlier so that no unusual and inappropriate changes arise during collaborating between a vendor and a hiring company.
When comparing the dedicated development model vs fixed-price model, the latter requires a firm price that is initiated between contracting parties which cannot be exceeded. This serves as a great advantage for the hiring company as it eliminates all unforeseen expenses.
Additionally, contracting parties don’t require close supervision of the project progress as everything is planned and scheduled right from the initial stage. However, in case you wish to make modifications, you need to negotiate and include it in a document that needs to be signed by both parties. This process can be lengthy and can directly affect project duration. Eventually, any unclear instructions can cause a negative influence on the wellbeing of the project which affects both client and developers.
Time and Material Engagement Model
This engagement model is quite straightforward. Clients pay for times when hired specialists are dedicated to the project. This can vary in terms of length and complexity. However, modifications and alterations can be done at any point. Although this model provides excellent control, there are several negativities like unforeseen costs. Moreover, as changes are made while the project is ongoing, there is a delay in the deadline and they are unmet. As a result, the client-side involvement elevates.
As you are unsure to select from the dedicated development model vs time and material model, you should choose wisely looking at your expectations.
Dedicated Development Team Model
The dedicated development team engagement model suggests hiring a dedicated team of experts that will be controlled by the contracting company. These specialists are offered by the vendor who keenly chooses the IT professionals with appropriate skills as per the positions that require to be filled.
Besides offering flexibility, a dedicated development team model provides excellent Scalability. Clients can either hire or fire specialists from their remote team in case the project demands such needs. Furthermore, throughout the collaboration, every team member will be entirely committed to the delegated project of the hiring company to whom they can report directly regarding the progress and status of the project.
When it comes to price, it entirely depends on the team size. Contracting businesses need to pay the monthly salaries of the specialists which involve administrative expenses, vendor fees, etc.
Hence, before selecting an engagement model, individuals must have a clear vision regarding the budget and objectives of the company. Once executives define the requirements and analyze the advantages and disadvantages of each engagement model, businesses can engage in flourishing partnerships along with extensive growth.
When is the Dedicated Team Model the Right Choice?
The dedicated team model is excellent when you have complicated long-term projects that can expand even more in the future. Note that when your idea lacks the product-market fit and requires a discovery stage, but when you own dedicated development team, it is a win-win. Let’s look into when you should choose a dedicated development team.
1. Early-Stage Startups
Generally, early-stage Startups can expect to grow. In such a case, hiring a dedicated team right from the very beginning is best. This approach enables you to build a team quickly, build the product faster, and save funds on the hiring procedure. Furthermore, while your in-house team works on the business tasks, the augmented team can accept and manage additional work.
2. Projects With Unclear Requirements
When your idea lacks the market fit product and requires a discovery phase, selecting the Dedicated Team will be excellent. Because the discovery stage sets the backbone for the entire development mechanism of your project, it might need months of interviews and tests to settle down with it. The dedicated development team model offers all the required resources and time for you to focus right on the discovery stage with zero fear of overspending.
3. Long-term Projects
To be very precise, the dedicated team model is perfect for long-term projects that have chances to expand in the long run. Hence, to reveal the potential of your project, you require a robust team of developers that supports you throughout. With a proper dedicated team, you can be fully assured that the developers you start working with will stay by you till the end of your project.
4. Short of Resources in your existing project
When you have few developers in-house but looking at the project priority and timeline, you might want to extend your development team by outsourcing it to a remote offshore software development company. Here the offshore company provides yours own dedicated development team for your project development.
Dedicated Development Model Vs Team Augmentation Model
|Dedicated Development Team Model
||Team Augmentation Model
|A dedicated team that works independently and solely for your long-term project.
||A remote development team that adds up to your existing team that’s working on a project.
|Provides wholesome end-to-end services from development to support and maintenance.
||Provides the necessary support and development services that the in-house team lacks or is looking for.
However, we can combine the above two models as per your customization needs.
In case you have an in-house team working on your project, and still, if you want to hire a dedicated development team, you can
Partner with Bacancy
When not to hire dedicated development team?
You should totally eliminate hiring a dedicated development team when you have,
1. Strict and Rigid Budget and Deadline
Ideally, the Dedicated team grows as your business grows. At times, you are required to put in more functionality to the project. Consequently, you realize that a mobile app can perfectly complement the solution you are developing. As a result, the team expands and then you need to find another project manager. Later, you realize that having a full-time designer is not necessary. That said, each of these changes can be done effortlessly when you work with a dedicated team. However, when you have a fixed budget, you can not expect this flexibility.
2. Tiny Project
When you have a small-scale or a short-term project, it becomes easy to connect with a Software Development company that guides and builds it for you. However, a dedicated development team is your go-to model in case you have a huge project that requires two back-end developers, two front-end developers, a QA engineer, a technical writer, a designer, and a business analyst. Choose a dedicated team when there are no deadlines.
3. Finalized Project Scope
In case you have put an enormous amount of time, effort, and work into making a detailed plan of your project, you are sure of what technologies you want to use. When you are not ready to compromise any feature and technology, a dedicated team might not be the ideal choice. When you have a settled scope, choosing the fixed-price model is a better option.
4. Do Not Trust The Software Development Vendor
Trust is the vitality of any cooperation. However, when it comes to a dedicated team, trust plays an important role. With a fixed-price model, you can give your team clear and explicit instructions. The time and material model demands you to trust the team even more. However, you can always stop cooperating the moment you feel that you and the team are not getting along well. Unfortunately, hiring a dedicated team is a promising gesture. You invest your effort and time into it, and hence you cannot have a committed relationship if you lack trust.
Many businesses make hiring mistakes which you should not make and rather learn from them when hiring dedicated development team.
How dedicated Development Team Works
After selecting your vendor successfully, the next step involves setting up the team. This is how a hire dedicated software development team works.
1. Gather The Essentials
It starts with considering the requirements. These involve the project description, job description, size of the team, and the expected workflow to gather appropriate and legit professionals for your project.
2. Setting-up The Team
In case the vendor has unoccupied tech pros, you can hire them instantly. In case they don’t have the required experts, they start with the recruiting procedure that usually takes around a month. However, if you need to kick start with your project ASAP, vendors can access the talent pools of their partners and you can get the tech specialist within a week.
3. Talent Selection
Here, HR goes through the tech skills, background, English level, and soft skills to select the ones that are the perfect fit for their project. These are the shortlisted candidates that can have interviews with clients later.
4. The Team
The best organizations will integrate the Dedicated team into your ongoing project without any hassle or effort. You can however feel free to pick the preferred management tools and approach you to want your team to use. It will be an excellent plan if you can pay an in-person visit to the Dedicated team. It is important as face-to-face cooperation is vital for relationship development.
Benefits of Dedicated Development Team
Suppose you have a long-term project that has a flexible scope. Now, you prefer managing it yourself and select a dedicated team model to execute. In such a case, you can rest assured that you have made the correct choice. Below are a few advantages that a dedicated team offers.
1. Cost-effective Alternative
While the numbers may vary, the average in-house rate of a Dedicated team is $70 per hour while the average outsourcing rate is $35 per hour. You can easily find an outsourcing vendor that is not way cheaper to work with, however, they make sure they offer efficient service that you could never achieve with your in-house team. Learn how you can Reduce Software Development Cost by Hiring Dedicated Developers.
2. No-fuss hiring
Generally, the vendor has a vast team of experts from which you can select. This enables you to know about the skills and talents of professionals that are hard to find. While a dedicated team needs your involvement in the hiring procedure, your job involves selecting individuals that fit your organizational principles.
3. Communication and Transparent Management
A dedicated team is similar to an in-house team that runs in an individual office. While you manage them directly, you would know that it involves tons of daily and effective communication. When the intermediaries are eliminated in the working process, there are fewer chances of you missing something. Additionally, you will know the dos and progress of your team.
4. Flexible scope at considerable cost
All in one! When you use a dedicated team, you achieve the flexibility of time and materials projects and the predictability of the fixed-price model.
5. Committed Team
When your team is committed, it adopts your culture. Know that it is significant for a new employee to perceive your goals and assist the company in reaching the goal. With a dedicated team, you can expect them to adopt your company culture easily.
How to Set Up and Run Successful dedicated Team
To do your part the best, here are some proven tricks and tips that will help you in setting up your dedicated development team successfully:
- Regularly schedule one-to-one meetings with each team member
- Empower the dedicated team to make decisions
- Convey the management decisions and choices to the team conveniently
- Set useful goals for the dedicated software development team
- Set clear goals for individual team members
- Convey your team insides way back to the management
- Do not micromanage & have an open-door policy
- Give maximum context to the dedicated development team
Here’s a Quick Guide for you to learn how to hire developers for your startup with this dedicated development model.
How to Effectively Manage Dedicated Teams
This is an important part. How can you even manage a team that you cannot see? Well, it is not as hard as it seems. All you need is trust and a few other elements. These include:
- Gathering the entire team through a video conference or call
- Set scheduled standups
- Ask questions in the conference like, ‘What is the update so far, ‘what did you do yesterday, ‘what will you cover tomorrow’, ‘what are the problems that you are facing’, etc.
When you hold daily meetings, it keeps everyone in the team updated and enables employees to structure information on their progress and future task plan. Make sure these stand-ups are moderate and short and apt.
1. Leverage Tools
Today, there is a pool of tools you can implement to keep a thorough track of your dedicated team and their activities. Here are some of the popular project management and communication tools are Jira, GitHub, Slack, Skype, etc.
2. Initiate Work Procedures
Try thinking ahead. Clear doubts and answer questions that the Dedicated team members might have at the back of their heads. Ensure informing them about your work procedures and how they are meant to be followed. Let them know about how to create tasks, how to share files, whom to connect if they face any access issues. All in all, your dedicated team must know the answers to these questions.
3. Offer Continuous Feedback
Being responsive is vital when it comes to managing a dedicated team. Software engineers might have several queries that you should answer to meet your expectations of the end product. Here, feedback plays a vital role. It guides the remote tech professionals in building it according to your requirements at every stage. When you don’t keep a check and offer continuous feedback, the development pace slows down and the workers start feeling unengaged and frustrated.
4. Bear In Mind: They Are Professionals
Many times, you might consider your dedicated team as a younger sibling of your in-house. Make sure you don’t do that. Both teams must be equal in your eyes and none should feel you are based. They are both high-profile tech experts you picked yourself. In case a dedicated team has ideas, consider them. Know that you have hired them for your tech expertise. Hence, treat them like professionals, consider their opinions, and praise them for their work.
Dedicated Development rates across the globe VS Bacancy
Well, if you are a business owner belonging from rich and developed countries like the USA or the Netherlands, where will you approach to develop your software product? In such a case, you will approach a dedicated development team. While approaching, you can hire your team from different countries as well. Below is a dedicated development team rates across the globe. Let’s look into it.
The average cost of the professionals of Latin America is quite low: $30 per hour. On the other hand, the cost of a Software engineer from any American development company can reach beyond $100-150 (US Dollar).
The country is home to a vast pool of talented software engineers charging an average hourly rate ranging from $25-50.
With a profitable IT industry, the average salary of a developer in Brazil ranges from $30-50.
A middle-level software developer in North America charges an average rate of around $132 per hour.
A middle-level developer of Asia charges an average cost of $24 per hour.
A lower middle-income country, Vietnam has software developers who charge a rate of $30-40 hourly.
This country has enormous developers who charge an average rate of $15-25 per hour.
Chinese developers who are in the middle-level charge an average rate of $30-60.
A middle-level software engineer belonging from Eastern Europe charges around $35 per hour.
An average rate that a middle-level Polish software engineer charges are around $30-50 per hour.
In Ukraine, any average software development specialists charge an hourly rate of $20-40 on an average basis.
Generally, Canadian development service charges are cheaper than the US development charge. An average developer in Canada earns around $150-195 per hour.
In India, the average rate that a Software developer charges ranges from $25-50 per hour.
At Bacancy, We follow Simple and Transparent Pricing so that you can easily rely on us and trust us. On average, the rates for hiring our dedicated development model range from $3120 to $3500 monthly.
Bacancy’s approach towards providing dedicated developers
Our approach for providing a Dedicated development team that matches your requirements is an altogether Giver-story! Read how we stand apart from other development partners.
★ N number of client interviews
We give you- not one, not two, but n number of times to connect with our best developers so that you can know them and then decide if they are a matrimonial match for your project. Do not hesitate to try out because we’re sure you won’t be disappointed.
Once you have partnered with us and are working with a dedicated development team, the team is all yours. Literally, you can reach out to them directly without any mediator or even without a Project Manager. We understand how close you are to your project, so sure you want to be specific and discreet.
★ No pseudo names
Stay connected and stay true- is our policy. Transparency, as discussed in the above point is a clear connection with the developer. Not fearing the shadow development or using any pseudo names for your development partners is what makes us the favorite of our clients.
Companies that have benefitted working as our preferred dedicated software development team
It gives us immense pleasure to share some of your partners who have benefitted from our dedicated software development team model:
Coming to a closure, you and we know that all you need to reach your project goals is to find the bridge- the right software development company; from that, you can hire dedicated developers to work. Bacancy technology is the top leading offshore dedicated development company in India that will aid you to achieve your goals in a cost and time-effective manner.
Frequently Asked Questions (FAQs)
Some of the prominent benefits of hiring a dedicated team are flexibility, fast turnaround, cost-effectiveness, time-saving, high-quality solutions, effective management, and more.
The vital difference between dedicated and any other dedicated development model is that in a dedicated team, developers can work from any distant location. Also, the developers can be replaced whenever the client feels the need.
The following aspects you should consider when choosing dedicated development team from an outsource location:
- Language proficiency
- Culture and compatibility
- Tech stack
- Talent pool
- Business regulations, taxes, and sanctions
If you are sure about the task that you need to get done, then you should go ahead with the hourly rate model. Whereas, if you are unsure about how long the project will need more work and modification then you can go with the monthly or project-based rate model. In any case, you are free to change your plan in the later stages as well.
Indeed, yes your dedicated development team at Bacancy works only for you- one client at a time.
Your hired dedicated team comprises of all the resources that are customarily required in your project. However, in general a dedicated development team consist of all the following members: frontend developers, backend developers, full-stack developers, UX/UI designers, QA, BA, mobile developers, project manager, product manager.