Businesses worldwide are embracing the technological revolution and are looking for ways to optimize their operations. Software development is the main contributor to this shift. Almost every single day new software launches on the market and takes the world by storm.

But have you ever wondered how businesses keep up with these emerging trends and manage the cost of high-quality software development? This is where outsourcing comes in, helping businesses to address their software development needs on their own terms. The IT outsourcing sector is projected to reach US$587.3 billion by 2027. This proves that outsourcing teams have become a viable cost resilience strategy in an environment where companies are looking for savings more than ever.

Dedicated development team model is one of these outsourcing models that offer a range of benefits to the businesses like flexibility, control over the development processes, specialized expertise, and much more. 

In this guide, you will find about the What is Dedicated Development Team Model?, How to Hire a Dedicated Development Team?, Benefits of Hiring Dedicated Development Team, Characteristics of Dedicated Software Development Teams, and much more about Dedicated developers team. So let’s dig in

A dedicated development team refers to the outsourcing model in software development in which the client and the service provider collaborate to work on a single project. It is a long-term partnership where the team works exclusively for the client like the in-house team and reports directly to them.

Hiring dedicated offshore developers is one of the best outsourcing models. But that doesn’t mean it’s a “one size fits all” model. There are certain situations in which hiring offshore dedicated developers can be favorable:

• Complex and large-scale projects
• Long-term projects
• Maintenance and support projects
• Projects involving emerging technologies

Businesses can also hire dedicated developers for short-term projects with a tight deadline. This outsourcing model not only provides a pool of specialized talent but also fast speed to market.

Hiring dedicated developers is very different from traditional hiring. As per this model, the client outsources the project to the service provider (the outsourcing company). The software development outsourcing company provides the client with a top-of-the-line team. Here’s how it works:

1. The RFP (Request for proposal) stage:

This is the first stage of the collaboration. The client sends RFP to the potential vendors to solicit proposals for providing a Dedicated Development Team. RFP is a document that defines the project scope and clients’ requirements. This document also aids in determining the required skill set, number of developers, and cost of hiring.

2. The team set-up stage:

Once both parties have agreed upon the requirements, it’s time to set up the team. This process starts with outlining contract terms and signing the contract. After this step the vendor assembles the team as per the clients’ requirements. The software outsourcing company chooses from the available talent pool of the company. If they don’t have enough talent available, more talent is hired from outside.

3. The team integration step:

In this step the dedicated development team relates to the client for further collaboration. The dedicated project delivery manager oversees the project and keeps both teams on the same page. He is the go-to person who keeps track of team effort, progress of the project and ensures the project is completed in time within the agreed budget.

4. The development stage:

This is the stage when the actual work on the project starts. Either the client-side project manager or the dedicated project manager assigns the task to the developers. The development process is customized by the Dedicated Development Team as per client’s specifications and needs.

5. The Quality Assurance Stage:

The project then goes through the quality assurance stage to make sure it meets the clients’ standards and requirements.

6. The Delivery and Support Stage:

Once the project is clear quality assurance engineers, it is delivered to the client. Maintenance and support are provided if needed.

The members of the dedicated development team depend on the project requirements. However, the team usually comprises:

• Dedicated Project Manager
• Developers
• Quality Assurance Specialists
• UI/UX designers
• Business Analysts

• Commitment and Professionalism:

When working with remote dedicated software development teams, professionalism is the bare minimum that clients expect. The Dedicated Developers Team member’s professional work ethic makes team collaboration a lot easier. This professional attribute of dedicated developers is very crucial for the success of the project.

But how can the professionalism of the team members be assessed? Well, professionalism doesn’t mean that the candidate has good hard skills. While assessing the professionalism of Dedicated Development Team, it should be made sure that each member possesses a perfect blend of hard and soft skills.

• Clear Communication:

One cannot emphasize enough the importance of clear communication when it comes to working with teams in an offshore setting. It is very much synonymous with the success of the project. So, while hiring a dedicated software development team, it should be made sure that the team understands the importance of clear communication and utilizes every means to make it happen.

Most of the time, both teams struggle with communication because no proper communication channels and guidelines have been set beforehand. Thus, misunderstandings arise.

• Clarity of Roles:

The main reason for inefficiency among the dedicated development team is the lack of clear roles. Defining clear roles in the team setup stage is very important to avoid confusion and conflicts. You cannot expect a team member with a specialized skillset to perform multiple tasks outside his niche. Therefore, the best dedicated software development teams have clear roles.

• Cross-Functional:

Diversity among the teams is one of the striking characteristics of a good, dedicated development team. Members with various complementary skills and backgrounds ensure that the project is approached from multiple perspectives and the solution is well rounded and comprehensive.

• Emotional Intelligence:

Emotional intelligence is very important in a dedicated development to cope with the tension and stress that is experienced at certain points of the project. Individuals with this quality are not only able to manage stress effectively but also communicate effectively and work collaboratively.

• Clarity of Goals:

Great teams understand the importance of their ultimate goals and requirements provided by the client. As a result, their actions are aligned with the objectives that you are trying to achieve.

Here a some of the benefits of hiring dedicated developers:

• Economically Viable and Practical Option:

It is one of the most economically viable and practical option when it comes to software development. There are no extra expenses attached with hiring dedicated developers as compared to hiring in-house teams. Also, companies must pay only for the resources working on the project

• Dedicated Resources:

There is an entire team at your disposal that solely focuses on the project. This way it gets the needed attention to get completed in time.

• Adaptable and Focused Approach:

Dedicated Developers Teams are highly adaptable and can be tailored to meet the specific needs of each project. They can quickly adjust to changing project requirements, ensuring that the project stays on track and meets its objectives. Additionally, DDTs can be highly focused on a specific set of tasks, ensuring that they deliver high-quality work with greater efficiency and speed.

• Specialized Skills :

DDTs often comprise a team of highly specialized professionals with expertise in specific technologies and tools. This can include experience in software development frameworks, programming languages, cloud platforms, DevOps tools, and other critical areas. By leveraging the specialized skills of a Dedicated Developers Team, businesses can ensure that their project is in good hands and that they are getting the best possible results.

• Control:

Businesses have greater control over the project and its resources when working with a DDT. They can communicate directly with the team, monitor their progress, and make changes as needed to ensure that the project stays on track.

• Fast time to Market:

Dedicated Development Teams are often more efficient and effective in delivering quality software products on time and within budget. This can help businesses to gain a competitive advantage and get their products to market before their competitors.

• Flexibility:

Hiring dedicated offshore development teams businesses with the flexibility of scaling the team up or down as needed, depending on the project’s requirements.

1. Dedicated Development Team vs Fixed Price Model:

The fixed price model works best for small projects with defined goals and budget. For example, in projects like web and mobile app development, website redesign and new software implementation, the deliverables are clear from the outset.

In the fixed price model arrangement, the software development company and the client agree upon a fixed budget for project completion. The outsourcing company is solely responsible for the completion of the project and the client has little to no involvement. One of the major advantages of this model is that it is a very straightforward approach to software development.

This model is very risky when it comes to long-term projects with changing requirements. As adjusting budget and timeline becomes challenging which can cause scoop creep and cost overrun.

Here are some of the advantages of fixed price model:

• No unexpected expenses and control over budget
• Clear deliverables
• All risks are handled by the outsourcing company
• Straight-forward approach

In the dedicated development team model, a team of developers with specialized skillset is provided that exclusively works for the client. It is a cost-effective option that provides flexibility of scaling the team up or down as per the project requirements. It is best suited for large, complex and long-term projects with changing requirements.

In this model, the client is almost fully involved throughout the project and the dedicated development team works as an extension of the in-house team. Also the team members are paid on a monthly basis as per pre-decided monthly rate.

2. Dedicated Development Teams vs Time and Material Model:

The time and material is a model in which the software development team is paid for the time and material utilized for the project. As in the hourly rate of each team member is determined and the client is billed as per the actual hours worked and the materials used to complete the project.

This model is ideal in a situation where the client wants more control over the project and adjusts the scope and requirements. It is because certain projects cannot be scoped accurately e.g. the research and development project where the requirements are evolved with new findings.

The main difference between the dedicated development team model and T&M is control and flexibility. In the time and material model, the client is more in control than the DDT. However, this is an expensive option as the client has to pay for the hours worked no matter what the progress is.

3. Dedicated Teams vs IT staff augmentation:

IT staff augmentation is an outsourcing model that is focused on filling the skill gap in the clients’ team. As per this model, external IT professionals are hired on a temporary basis as an extension of the in-house team. Such professionals are either hired individually or in a team to provide additional expertise to complete a project. The team is usually paid on an hourly or daily basis depending on the contract and level of expertise provided.

On the other hand, DDT is an outsourcing model for companies looking to hire a team exclusively working on a specific projec

Hire a dedicated development team can be a great option for startups or businesses that are expanding. It is also a cost-saving opportunity for established companies with specific project needs. Here are some of the factors that might help you determine when the right time is to hire dedicated developers.

• Projects requiring broad range of expertise:

There are certain projects that are resource intensive. In such cases hiring in-house talent can be daunting and expensive. Dedicated development teams provide you with a diverse talent pool to complete the project within time and budget.

• Companies looking to develop projects involving new technologies:

Projects involving technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Blockchain, Machine Learning (ML), Virtual Reality and Augmented Reality (VR/AR), and more require profound expertise to be completed. Hiring dedicated developers can be a good choice because these individuals are current with the latest trends. Also, they might help you with the research and development required to navigate the complexities of new technologies.

• Companies looking to rapidly scale the teams:

If a company wants to save itself from longer requirement processes and rapidly scale the team, Dedicated Development Team is the only option. The on demand dedicated development teams have pre-screened developers ready to be onboarded.

• To gain more control over the project:

The dedicated development model provides the client with the control to determine the scope and requirements of the projects and adjust them accordingly.

• Long-term projects with consistent development and requirements:

If the project’s timeline is more than six months and needs consistent development, you definitely need to hire a dedicated development team.

Hiring dedicated development teams can prove to be a beneficial strategy for businesses aiming to build high quality software products. But there are certain challenges that companies face while hiring these teams. Here we have enlisted some of those challenges:

• Managing the offshore team:

The dedicated offshore development teams are working beyond the borders. So, managing a Dedicated Developers Team is going to be a challenge as compared to managing an in-house teams. There are instances when communication and collaboration are disrupted. Hence it becomes difficult to track the progress of the project.

• Dealing with cultural conflicts:

Your dedicated software development belongs to a different country with a different cultural background. This can result in a difference between the work ethics and principles of the main team and the dedicated development team.

• Problem finding the right fit:

It is not possible to find the right talent straight away. You will have to go through a considerable number of candidates to finally select the right fit for the project.

• High cost of experts with specialized skills:

If you are hiring a team of dedicated developers, you should have a big budget since the rates are very high sometimes.

• Coordination and Integration Issues:

Both teams can have coordination issues at times and can deviate from their goals and objectives.

These are some of the challenges that companies might face while hiring a dedicated development team. Although effective management and being prepared for the risks beforehand can save them from a lot of hassle.

Related Blog: Cultural Aspects to be Consider While Onboarding Offshore Teams

Founders tend to make several mistakes while hiring offshore developers which can adversely affect the quality of the product. Here are some of the mistakes that need to be avoided while hiring dedicated developers:

• Focusing on the cost solely rather than the skills and expertise of the team
• Not doing thorough research about the outsourcing company like background checks, reviewing portfolios, and checking references
• Failing to define the scope and requirements of the project
• Ignoring the soft skills of the candidates and hiring only based on hard skills
• Setting unreal expectations

Not providing the team with the right tools and support.

Managing offshore dedicated developers effectively is very crucial for the success of the project. It can become challenging sometimes, but certain strategies and best practices can ensure that the team is productive and in good spirits:

• Foster a culture of empathy and collaboration:

Fostering a positive team culture can go a long way in managing dedicated offshore development teams. Since these teams are working remotely, it is important for the team members to be empathetic towards each other to boost productivity and collaboration. Also, a supportive and fulfilling environment helps in retaining the team members.

• Clear communication:

By clear communication we mean that the team members feel free to communicate their ideas and concerns. It plays the main role in the success of any software development project as it sets a base for innovation in the dedicated development team and leaves no room for ambiguity.

• Setting clear goals and expectations:

Defining the scope of the project, identifying key milestones and setting deadlines at the start of the project is very important in managing a dedicated development team.

• Make the right tools and technologies accessible:

Identify the team needs and provide them with the right tools and technologies that can aid them in the development process. Also provide training and support for using these tools.

• Risk management:

Risk management means identifying the potential risks to the project, their effects and assessing the ways to mitigate them. Effective risk management ensures that high-quality software products are delivered on time and on budget.

• Invest in training and professional growth of the team:

Offering training and professional growth opportunities to the dedicated development team helps managers to build a skilled, motivated, and adaptable team.

Related Blog: Offshore Software Development Risks and How to Mitigate Them?

1. South America – Brazil, Argentina, Chile, Colombia, and Mexico

One of the biggest challenges of offshoring is the cultural differences between the offshore team and the in-house team. Different cultures may have different work ethics, communication styles, and business practices that can cause misunderstandings and delays.

2. Asia – India, China, Vietnam, and Pakistan

A well-known and reasonable outsourcing spot for hiring dedicated developers. The region has at least 4 million professionals, even more for all sorts of projects. In fact, an average salary of an Indian developer is a fraction compared to US-based developers.

3. Eastern Europe – Ukraine, Poland, Belarus, and Romania

The region again has hit the sweet cost-effective spot when compared to US developers as the region has talent, lower cultural and language barriers, and manageable time zones. However, Asian countries may stay ahead as top locations to hire dedicated offshore developers in terms of cost where they compensate with good quality work, consistency, and on-time delivery. Ukraine leads this region with more than 1600 development agencies.

Here are some of the best practices to follow while choosing an software development outsourcing company for dedicated development team:

• Prepare a comprehensive list of the requirements of the project:

Provide detailed descriptions and specifications requirements on your list. This will help the service provider understand exactly what you are looking for.

Include any relevant information or constraints, such as budget, timeline, or technical requirements. This will help the vendors understand the context of your project and determine whether they can meet your needs within the constraints of your project.

• Do extensive research and shortlist potential Dedicated Software Development vendors:

You can try searching for the software development company’s name online to see if there is any information available on their website or on other business directories. This can provide you with a general overview of the company, including its mission and values, products and services, and team members.

Also, try reaching out to the company’s clients to ask for recommendations or feedback on their experience working with the company. This can provide valuable insights into the company’s strengths and weaknesses and can help you gauge the level of satisfaction among their clients.

• Run background checks: company profile, client recommendations, past projects:

Research the company’s past projects to see what they have worked on in the past. This can give you a sense of the types of projects the company has experience with and can help you evaluate their capabilities and expertise.

• Don’t settle immediately, take your time in hiring an offshore development company:
• A well-thought-out hiring process can help you identify the top-of-the-line dedicated development services providers which can lead to better outcomes for the company and for the individual you hire,
• Prepare assessment tests and setup multiple interview stages for hiring dedicated developers:

Although it’s the vendor’s job to provide you with the best team, it is always better to double-check.

Assessment tests can help you evaluate a candidate’s skills and abilities, and multiple interview stages can help you get to know the candidate better and determine if they are a good fit for the project.

• Finalize the contract:

Once you have decided on the company and team members, it’s the right time to finalize the contract.

• Onboard and Manage:

After the contract is signed, it is better to onboard and integrate with the team immediately.

Outsourcing a dedicated development team from CodeNinja means partnering for reliable relationship building. Our clients are our reputation, that is we never leave them in testing waters, unlike other software service providing companies. Code Ninja has 7+ years of experience in software development and IT consulting. Keep in-house control and cut hiring and infrastructure costs by 50%.

Benefits of hiring dedicated development teams from Code Ninja:

• Transparent process and price quoting
• Rapid development
• Topnotch Talent
• Versatile teams

Hiring a dedicated development team is the new black of outsourcing. Businesses around the world are reaping numerous benefits of this hiring model. If you are a business looking for specialized skills for your project that too in budget, hiring Dedicated Developers Team is the best option you will ever find in the market.

What is the principle of the work of a dedicated software development team?

The work principle of a dedicated software development team is pretty focused and collaborative. It is a bunch of people allocated solely to a project where they work closely with the client to deliver high-quality software. Since the team is hired for projects that have changing requirements, the team works as per agile methodology along with others to adapt to the changing circumstances. The team is usually cross-functional usually consisting of the following members:

• Project Manager
• Software engineers
• Designers
• QA professionals
• Other professionals as per the requirement of the project

What is a typical dedicated development team structure?

The team structure of a dedicated offshore development team may vary as per the scope and size of the project. Here is a typical structure of a Dedicated Development Team:

• Project Manager:

The manager oversees and manages all aspects of the project and ensures everything is on track.

• Software Engineers:

These are the main drivers of the software development process. They write codes for the software and work in collaboration with other professionals to develop other aspects of the product as well.

• Designers:

They deal with the user experience part and are responsible for designing interfaces.

• Technical Writers:

They are needed to draft the documentation of the software.

• QA specialists:

The QA specialist tests the software product and check if they are up to the quality standard

Why is a dedicated development team crucial for agile development process?

Agile software development is a process where software is delivered in small and manageable increments also known as sprints. This approach is solely focused on collaboration and responsiveness and emphasis on customer satisfaction throughout the development process. The software is delivered in incremental cycles so that it can be tested easily, and high-quality products are delivered.

Dedicated development teams are crucial for the agile development process because they have all the qualities required for delivering a high-quality product that satisfies the customer and works efficiently. These qualities are:

• Efficient Collaboration since they are dedicatedly working on a single project
• Specialized skills and area of expertise allowing them to perform well in their particular roles.
• The team is designed to be responsive to cater to the changing requirements of the projects
• Committed and taking ownership of their work
• Continuous improvement in the product

Why do CTOs and CEOs prefer to hire dedicated development teams?

There are times when the CTOs or CEOs must focus on a core business requirement and are not able to multitask. Therefore, they prefer to hire dedicated development teams which are allocated to a project and have specialists working on it. So, they don’t have to worry about managing and supervising the team. Other reasons why they prefer to hire dedicated develops are:

• They want to maintain that control over the project to some extent and make sure the most critical tasks are done the right way.
• Finding and working with the top-notch resources to develop a high-quality product
• Eliminate the cost of maintaining an in-house team and optimize the budget

How expensive is it to hire dedicated development teams?

Hiring a dedicated development team is a cost-effective option but still, the prices are subject to change. The cost of hiring depends on these factors:

• Location of the team
• Size of the team
• Expertise Level
• Complexity of the project

Businesses should carefully consider the cost of hiring and should not always go for cheaper options. If you want to work with hi-end resources than obviously there is a fair price to pay.