The dedicated team (DTM) software development business model is no unicorn, but it does have some myths surrounding it. We will look at this model in detail to see what is true and what is a myth.
Defining the dedicated team model
Before we go further, let's define a dedicated team model.
A dedicated development team is a business model in software development that refers to the long-term collaboration between a client (an outsourcing company) and a service provider (a dedicated development team). All dedicated team members are working exclusively for you, the same as your in-house teams. However, the dedicated team usually works remotely, full-time, reporting directly to the client. This collaboration model works best for projects without strictly defined scopes or requirements.
Whether you need software engineers, designers, project and product managers, QA specialists, or business analysts, you can hire specialists using the DT model.
Who can benefit from the DTM?
The dedicated team model works well for both startups and established businesses. Let's review the following scenarios to help guide our discussion and see where your needs fit.
- A startup wanting to quickly build a development team from scratch? Hiring a local software development team is usually much more expensive than hiring a remote DT. When hiring a development team, you won't need to rent a workspace, which helps you save financially. You will also save time by not having to look for local talent.
- A tech company struggling to find the right specialists?
Hiring a dedicated team can be the solution.
- A tech company working on a big project (or several projects) and needing to extend your engineering team?
Choosing a dedicated team can provide a fast and cost-efficient solution.
- A tech company wanting to broaden the field you work in by tapping into new technology expertise?
With a dedicated team model, you can hire a team of experts that have profound knowledge in a particular field.
How does a dedicated team work?
A dedicated team operates similarly to your in-house team. The cooperation generally includes four phases: the discovery phase, the team setup phase, the development phase, and a buyout phase (optional). Let's explore each stage in more detail.
The discovery phase
This is the beginning stage of your potential collaboration with a dedicated team. During the discovery phase, a client and a development company:
- assess the project's scope
- identify a required number of team members
- understand the team's skillset and expertise in a particular field
- negotiate the development costs
When all stakeholders agree upon the scope of the work, as well as the other conditions and requirements, they proceed to the next phase– team set up.
The team set up phase
During the team set up phase, both sides decide on the contract terms and form a partnership. After signing the contract, the development company assembles a dedicated team for the project. The client is then connected to the dedicated delivery manager, the "go-to" team member who oversees the project timeline while keeping the client and the DT unified.
The dedicated team will then assign one or two temporary principal engineers (from the core team) to hire the persistent team. Qualified candidates will be chosen from the company's pool of available employees. If other specialists are required, the service provider will recruit them within two or three months of signing the contract.
When additional recruiting is needed, the client will be assigned a dedicated recruiter to help identify candidates and send weekly updates on their results. Each potential candidate will go through three rounds of hard and soft skill interviews. If a candidate meets all the desired criteria, they will move on to a final interview with the client.
The development phase
Once the first team member is assigned to the project, the development process begins. The client's team starts assigning tasks to the dedicated team members, just as they would with their in-house development team. The development company usually facilitates all operational tasks, taxes, and establishing a proper work environment. To sustain a high level of employee motivation and retention, each team member will have regular face-to-face meetings with an HR manager.
Buyout is also possible with dedicated teams. Clients usually feel uncertain when investing their time and money into the growth of dedicated teams. If a client prefers the dedicated team not use their acquired knowledge for other companies or other projects, Altigee can propose a DT buyout. In this case, a client can buy the entire team and hire them directly or set up a remote development center. We can help out in both scenarios.
The benefits of working with a dedicated team
Now that we know who can best benefit from this model and how it works, let's discuss what advantages it can bring to your project and why a dedicated team is worth working with.
DTM saves you time and money
Hiring a dedicated team is usually cheaper than hiring local specialists. For example, if an American client hires a dedicated team from Eastern Europe, it will cost them less money for the same top-quality talent and expertise. According to Statista, the average hourly rate of a US software developer begins at $35, while the average hourly rate of a Ukrainian developer begins at $25.
Also, if you hire a dedicated team, the whole scope of work is clear to you so that no budget overruns will happen.
DTM offers a global talent pool
Competition among the tech market can cause hiring challenges when looking for a local specialist. This is not true with dedicated teams. If you struggle to find a local development team with the required skill sets you need, the dedicated team business model is your solution. You will have access to a global talent pool, allowing you to choose the perfect team to meet your business needs.
Hiring a dedicated team doesn't have to mean the loss of quality work or poor communication. There are plenty of skilled developers, worldwide, who excel in writing quality code. And with the advantages of living in a tech-savvy world, impeccable communication among teams is no longer a problem.
DTM is flexible
When choosing a dedicated team, all processes are under your control. You can decide what approaches or tools to use, how many team members you need, and what deadlines to set. The most considerable benefit of the DT model is its constant flexibility when adapting to changes in the project's scope or duration. Dedicated teams allow virtually unlimited scalability for the project or team.
The dedicated team model provides businesses with extraordinary benefits. By choosing this business model, not only will you save time and money when recruiting, but you can hire the best specialists available while being unlimited in the size of your team or scope of your project.