What Is a Dedicated Software Development Team? A Hiring Guide

When hiring a software development team, it can be tempting to take to LinkedIn and put out a job ad right away. However, careful consideration is crucial to ensure you select the right recruitment model for your business’s needs. Choosing the wrong hiring model can ultimately lead to numerous hurdles, from a delayed development time to an unnecessary loss of funds.

Fortunately, the challenges of hiring a development team can be mitigated by learning about different development models and their unique benefits. So, to help you get started on your recruitment journey, this article explores one of the most popular approaches for businesses: the dedicated development team model. Keep reading to learn more about its ample advantages and how it compares to other models.

What Is the Structure of a Dedicated Software Development Team?

A dedicated software development team refers to when a business hires a third-party development agency to take advantage of their labor resources or organizes a team of freelancers. Unlike hiring individual freelancers for specific roles, this model provides your business with all the necessary resources it needs to build and deliver an application. In other words, a dedicated software development team acts as an extension of your existing in-house team.

For example, when building enterprise software, you need access to front-end developers, back-end developers, and QA specialists. While you could hire each of these team members individually and manage them yourself, it would be done at a great cost and time. As a result, many businesses opt to hire a dedicated software development team consisting of all the specialists needed for the project.

Typical roles found within a dedicated software development team include:

• Project Manager
• Business Analyst
• UI/UX Designers
• Software Developers (Front-End and Back-End)
• QA Specialists
• DevOps Engineers

With access to these essential roles at a fraction of the cost it would require to hire them individually, this model has become increasingly popular for businesses of all sizes. In fact, according to recent statistics, 92% of Global 2000 companies and 37% of small businesses opt to invest in dedicated development teams.

Comparison of Dedicated Development Model With Other Models

While the dedicated development model is a highly popular and recommended model, it is not the only option. In fact, there are several different development outsourcing models, each of which come with its own set of advantages and drawbacks. So, to help you determine the model that’s best suited to your needs, let’s take a look at some of the top development models and how they compare to the dedicated model.

Dedicated Development Team vs. Fixed-Price Model

The fixed-price model is one of the most common and widely used development models. It involves paying a bespoke software development agency a set price to build your application within a predefined time period to a previously outlined project scope. The benefits of the fixed-price model include:

• Fixed Budget: As you’re agreeing to a fixed fee, you know exactly how much to pay the development agency for the entire project. This means no unexpected costs, allowing you to easily stay within your planned software development budget.
• Fixed Deadlines: While some projects may overrun due to technical difficulties, fixed-price projects come with strict deadlines. As a result, you can expect your project to be delivered before a certain date.
• Defined Deliverables: Fixed-price projects require a clearly defined scope, meaning the final deliverables will be exactly as expected. In other words, no unnecessary changes will be made throughout development, as the project will be priced according to the spec. Counting on certain deliverables ultimately improves the stability of your project.

Choosing a software development partner wisely is essential when opting for a fixed-price project, as your experience with fixed-price development will vary depending on the quality of your partner. For example, if you hire a subpar development team, you will find yourself stuck with a fixed bill for a low-quality product. Conversely, if you choose the right team, you can enjoy great value for money.

Fixed-price models, however, also generally come with these burdens:

• Inflexibility: Your project scope is set in stone, meaning there’s no changing your mind about features once development begins.
• Limited Control: Again, with the fixed-price model, your project is bound by its scope, giving you limited control over the project once it’s handed off to your developers.
• Higher Cost: While in some cases fixed-price projects can work out as cost effective, this is only true for complex developments. For instance, a fixed price for a static website will likely be more expensive than paying developers an hourly rate.

Overall, compared to fixed-price development, the dedicated development team model offers a much more flexible approach, giving you the freedom to choose whether to pay your team a set price or on an hourly basis.

Dedicated Development Team vs. In-House Team

Dedicated teams, for instance, work remotely on a project-by-project basis, while in-house teams are brought on as if full-time employees with the goal of maintaining a long-term relationship. Managing a remote software development team involves different strategies compared to in-house teams, which can influence your choice depending on your management capacity and project needs.

Some advantages of hiring an in-house team include:

• Direct Communication: Generally, in-house teams work in the same place as you, whether in a physical or digital office, giving you direct access to developers and designers. This makes communicating and collaborating with your development team just as efficient as with other employees.
• Full Project Control: When hiring an in-house team, each member functions as your own employee, meaning you have control over what people are working on and their access to resources. This allows you to carefully oversee your project and ensure nothing is amiss through the software development life cycle.
• Scalability: In-house development teams also enable high scalability. For example, if you need new expertise, all you have to do is simply hire another team member who has the skills and experience required for the project.

While these benefits are valuable, the in-house hiring model is typically best suited for businesses that are continuously developing software. However, like any development model, hiring an in-house team also has a few distinct disadvantages. These include:

• Hiring Challenges: Finding the right talent for your in-house team is no easy task. You’ll need to carefully review each candidate for their expertise and previous experience, ensuring that they suit your project needs. Not only is this process time consuming, it tends to be costly too.
• Reduced Talent Pool: Working from home has become the norm in recent years, especially when it comes to software development. In fact, almost 40% of software developers say that they will only accept remote roles, presenting additional hurdles in the recruitment process.  By asking developers to come into your offices, you are limited in who you can hire and also lose access to international talent.
• High Long-Term Cost: With an in-house team, you commit to hiring long-term employees, which comes with ongoing costs that accumulate over time. This makes the in-house hiring model more expensive than other options.

The dedicated team model mitigates the drawbacks of the in-house model by offering wide-reaching access to global – not just local – talent while reducing hiring costs.

Dedicated Team vs. Time & Materials Model

As the name suggests, the time and materials hiring model involves paying for only the time and resources invested in your project. This typically means paying for developers or a development agency on an hourly basis, while also investing in the necessary software licenses for the duration of the project.

Like the fixed-price model, time and materials is a highly popular choice for businesses working on a project-by-project basis. This is thanks to several noteworthy advantages, such as:

• High Flexibility: Time and materials is one of the most flexible contracts available, as you typically pay per hour. This means that you can make changes and updates when needed. With fixed models, however, you may find pushback from developers if requesting updates outside of the original scope.
• Potentially Cost Saving: With a fixed-price project, no matter how long it takes to build, you pay the same price. The time and materials model, on the other hand, involves paying only for hours worked. As a result, if a project is completed before its estimated delivery date, you’ll save money.
• Rapid Response to Changes: Due to its flexible nature, your development team is able to rapidly respond to changes with the time and materials model. This ultimately allows you to easily adapt to market trends and make updates when needed.

Although the time and materials model provides your software development project with several benefits, it also comes with multiple disadvantages. This includes:

• Lower Budget Control: While time and materials can lead to a more cost effective development, it generally offers lower budget control. This is because you can’t control the advent of unexpected bumps in the road that may push you over budget.
• Uncertain Timeline: As a result of its flexibility, the time and materials model often leads to an uncertain development timeline. With features being added and changes made throughout the development process, the timeline can quickly change, making it a poor choice for time-sensitive projects.
• High Involvement Required: Due to changing parameters and uncertain scopes, your input is required more frequently when using the time and materials model. This means that if you’re looking for a hands-off development so you can continue to focus on the daily operations of your business, time and materials is likely not the best option.

When compared to the time and materials hiring approach, the dedicated development model offers many of the same benefits. For example, with a dedicated development team, you have direct control over your developers and can easily make changes to the project when required.

The only downside is that you may be unable to achieve the same level of cost savings with a dedicated team due to team members essentially acting as full-time employees. Theoretically, however, you could combine the two models by offering to pay an external dedicated team an hourly rate.

Dedicated Team vs. Team Extension Model

The team extension model is where you outsource external workers as freelancers to supplement your existing team. This is a great choice for businesses that already have existing development or project teams but need to off-load some work to another individual over an uncertain period of time.

The advantages of the team extension model include:

• Cut Overheads: Hiring an external team member as a freelancer enables you to cut your labor overheads, as you’re not obligated to offer the perks of being a full-time employee, such as sick pay and vacation time. This allows you to enjoy the benefits of an additional team member without the high costs associated with full-time employment.
• Reduce Workload: By introducing new team members, you can reduce the workload of your existing team, ensuring a greater focus on more important duties. This will also result in increased efficiency and productivity.
• Autonomous Work: As self-employed individuals, freelancers are used to managing themselves and their workload. This means they can be left to work autonomously without the need for micromanagement, freeing you and your managers up for more essential tasks.

Some disadvantages of the team extension model include:

• Coordination Challenges: When hiring external members to supplement your team, it’s likely that they will be working remotely. Consequently, coordinating between your remote workers and in-house developers may prove challenging, as additional communication effort is needed.
• Lack of Team Integration: As your extended team is not part of the core team and may only be working for you on a short-term basis, they may struggle to integrate into your workplace. For instance, they will not have enough time to learn your workplace culture, potentially causing friction among existing employees. This can also cause inefficiencies in development.
• Knowledge Transfer: Transferring essential knowledge to your extended team may also present difficulties. For example, because each development team approaches the development process differently, your new team members must learn your conventions for a successful project.

The team extension model does not offer a like-for-like comparison with the dedicated team model, as it’s focused on businesses with existing teams. However, if you don’t already have your own team of developers, then the dedicated team model is generally the best approach for your business. This is because integrating external members with your existing team will likely prove more hassle than necessary.

Who Should Hire a Dedicated Development Team?

Now that you have a better understanding of some of the most popular development models, let’s zero-in on the dedicated team model, exploring what types of businesses can benefit most from this approach. This will help you determine if the dedicated model will suit your needs and ensure you hire the right software development company for your business.

• Startups: Startup companies that lack the resources to build an application in-house should consider hiring a dedicated development team. With a dedicated development team, startups do not need to focus on project management or worry about how they distribute and access resources.
• Small to Medium Enterprises (SMEs): SMEs benefit from dedicated developments for many of the same reasons as startups. The hands-off approach that a dedicated team provides means that businesses can focus more intently on essential daily operations.
• Companies With Specialized Needs: While your business may have access to some development resources, you might find yourself lacking certain expertise as your software needs change. Hiring a dedicated development team, however, will allow you to access additional short-term resources to build your specialized software.
• Companies Needing Fast Time to Market: If your business needs to deliver its new software as soon as possible, hiring a dedicated team is an excellent way to do so. This is because, with a dedicated team, you do not need to worry about time spent on recruitment or developing your team’s skills.

As you can see, the dedicated development model is suited to several types of businesses and their needs. It also provides numerous benefits, such as faster time to market, cost efficiency, and high productivity, making it an ideal approach for most businesses.

Who Shouldn’t Hire a Dedicated Development Team?

While the dedicated development team model suits several businesses, it isn’t for everyone. In fact, there are a number of reasons you might choose to opt for a different development model.

• Limited Budget: Although you can choose between a fixed price and hourly rates, hiring a dedicated development team is not the best option for business with a limited budget. While you’re spending less on recruitment, you’re still hiring an entire development team, meaning you’ll need to cover the cost of each team member’s wages for your project.
• Existing In-House Team: If your business already boasts a strong in-house development team, then there’s little point in hiring a dedicated team. If you need to supplement your resources, you’d be better off with the extended team model.
• Unclear Project Scope: Without a clear project scope, the cost of hiring a dedicated team will quickly add up as they try to navigate your project expectations.

Generally speaking, most businesses can benefit from the dedicated development team model, but it’s always a good idea to fully explore all models before making a final decision.

Benefits of Hiring Dedicated Development Team

Throughout this article we’ve touched on several benefits of the dedicated development team. Now, let’s take a deeper dive and explore the model’s core advantages.

Cost-Effectiveness

Hiring a dedicated development team is a cost-effective option because it eliminates the need for recruitment, training, and managing full-time employees. You can also avoid overhead costs like office space, equipment, and other costs associated with in-house teams. Additionally, dedicated teams often operate on a fixed or flexible pricing model, allowing for better budget predictability and control.

Focus and Productivity

Dedicated development teams are focused solely on your project, which enhances productivity and efficiency. On the other hand, when using your own team or another development model, you may find your team stretching their time across multiple projects, leading to reduced productivity and focus.

What’s more, as dedicated teams come as one unit, team members are experienced in their respective roles and accustomed to working together. With fewer distractions and more efficient collaboration compared to in-house teams, dedicated teams can deliver high-quality work in a timely fashion.

Specialized Expertise

Dedicated development teams also typically consist of skilled professionals with expertise in specific technologies or domains. So, by leveraging a dedicated team, organizations gain access to specialized knowledge and experience that may not be available in-house, enhancing the quality and efficiency of project execution. This is why, as mentioned earlier, dedicated teams are an excellent choice for businesses who have specialized software requirements.

Faster Time to Market

Dedicated development teams are experienced at delivering projects promptly due to their specialized skills and streamlined workflows. They can start working on your project quickly, leveraging existing expertise and resources, to ensure your product swiftly reaches the market. By minimizing project delays, the focused approach of dedicated teams ultimately provides businesses with a competitive edge.

Challenges and Solutions

As with any software development hiring model, the dedicated team model does come with several challenges. However, by implementing a few basic practices, you can avoid these hurdles and take full advantage of the model’s immense benefits.

Cultural and Language Barriers

When working with a dedicated development team from a different geographical location, cultural differences and language barriers can impact communication, collaboration, and understanding of project requirements.

Solution

• Cultural Sensitivity and Training: By encouraging cultural sensitivity among team members through training and awareness programs, you can foster a culture of respect and inclusivity.
• Effective Communication Practices: It’s best to use clear and concise communication methods that accommodate language differences. You should also encourage team members to ask questions and seek clarification when needed.
• Language Proficiency: Ensuring team members have sufficient language proficiency in common business languages (e.g., English) can help facilitate effective communication.

Time Zone Differences

Time zone disparities can lead to scheduling conflicts, delayed responses to queries, and reduced real-time collaboration between onshore and offshore teams.

Solution

• Overlap Hours: Identifying overlapping work hours between teams will facilitate synchronous communication and collaboration. You can then schedule meetings and discussions during these overlap hours to maximize team engagement.
• Flexible Work Hours: Allowing team members to have flexible work hours will help accommodate any time zone differences. It’s also important to encourage asynchronous communication for tasks that do not require real-time interaction.
• Shared Calendar and Time Management Tools: Leveraging shared calendars and time management tools will enable you to smoothly coordinate meetings, track availability, and manage project timelines across different time zones.

Quality Control

Ensuring consistent quality standards across distributed teams can be challenging due to varying skill levels, processes, and work environments.

Solution

• Establish Clear Quality Guidelines: It’s crucial to define and communicate clear quality standards and expectations to the dedicated development team upfront. You will also need to provide training and resources to ensure understanding.
• Regular Code Reviews: Implementing regular code reviews and quality assurance processes will help you identify and address potential issues early in the development life cycle.
• Continuous Feedback Loop: Providing constructive feedback and encouraging open communication between stakeholders and development teams will enable you to foster a culture of continuous improvement.
• Quality Assurance and Testing: It’s imperative to allocate sufficient time and resources for comprehensive testing and quality assurance activities. This will allow you to detect and rectify defects before software deployment.

Why You Should Consider Idea Maker When Hiring a Dedicated Software Development Team?

If you need a dedicated software development team, then look no further than Idea Maker. Our team of experts has experience working with companies in nearly every industry to deliver high-quality software projects aimed at enhancing business operations. We also have a proven track record of success, with an average rating of five stars on both Google and Clutch.co.

As your dedicated team, we provide your business with the access to resources and specialized skills required to get ahead of the competition. Schedule a free consultation with us today to learn more.