Around 300,000 US companies hire a dedicated team every year. The dedicated team is the most common outsourcing model. It is widely used in remote collaboration with vendor software development on a long-term basis.
All dedicated team members work just like your internal developers, but you will not deal with administrative, personnel, tax, and social issues. It is the responsibility of your service provider. So, a dedicated team is a cost-effective alternative to an in-house development approach.
The lack of local technology talent is the most common reason for setting up a dedicated development team. According to ITWorld, companies need 8-12 weeks to build an onsite engineering team. Also, local employees are sometimes more expensive than a team hired from another part of the world, such as Eastern Europe or Asia.
When It Is Worth Working With a Dedicated Team
- Project development requirements and technical tasks may change over time.
- IT specialists are required to develop several projects, one after another.
- You need to reduce the cost of development services without fundamentally changing the team management style.
- You need to bring the project up to speed in order to meet the timeline requirements.
Hiring a dedicated development team is the best choice for mature companies and new startups.
How to Interview Candidates For Your Dedicated Team
The interview with the potential players of your team takes place first from the vendor’s side. Your service provider is responsible for the hiring process. The vendor has general and tech interviews with candidates. IT specialists have a staffing interview in your company after passing the stage of selection by the vendor. It is a final technical interview conducted by a client’s company specialist.
Your service provider selects those IT specialists who meet your expectation from a global talent pool. You decide whether any of the proposed candidates will work on your project. During the interview, you should check the candidate’s technical skills, communication style, understanding of your company’s culture, and other aspects that you believe are important to a successful team.
How to Build a Dedicated Team
The composition of the dedicated software development team always depends on the project’s needs.
A dedicated software development team may include the following:
- Software Engineers. Choose developers based on the skills needed for your project. Pay attention to the programming language and experience writing code in a similar software product.
- UI/UX Designers. Designers are mandatory players of your dedicated team. They make your product interface simple and user-friendly.
- QA Specialists. QAs check the quality of the written code and the created interface and also ensure your software product from constant software failures and edits.
- Project Manager. This employee is your primary communicator. The PM supports the team’s work, plans the workflow, assigns tasks, monitors performance, motivates team members, and helps correct their mistakes.
- Business Analyst. This specialist analyzes the market’s needs and forms them into technical requirements for a dedicated team. BAs help implement your business needs most beneficially.
How Much to Pay for a Dedicated Team
Hiring a dedicated software development team is much cheaper and faster than searching for each professional independently with the Recruitment team. Typically, hiring a new employee takes 20-25% of the monthly compensation. The price is as transparent as possible.
Working with a dedicated development team, you pay each team member a salary plus the vendor’s fee. Each employee has a specific hourly rate, and you pay for the number of hours worked. You will understand the entire scope of work, so the budget will not be overspent.
Cooperation is easily stopped if you want to reduce the team or replace a player.
How to Manage a Dedicated Development Team
This outsourced model is flexible and transparent. There are two most common options for managing a dedicated team. You can independently control or delegate the development process to the appointed project manager.
The first option is when you are fully responsible for communicating with the team. The provider provides only the remote office’s technical functioning and everything necessary for efficient work. It is an ideal option to reduce costs using geographic factor. If you want to manage your dedicated team independently, read the article about organizing work with people who work for you remotely.
The second option is to delegate communication to the provider and deal only with the project manager and account manager. This approach suits a company where processes are established and can be easily outsourced. In this way, you also reduce operational costs for admin staff.
How to Set Up a Dedicated Development Team
Most staffing issues are the responsibility of the provider. However, any replacement, introduction of a new employee, or team player change slows down the work on your project. That is why it is important to determine which developers you need and which tasks they will perform at the start.
- Don’t look for a universal employee
The possibility of hiring a developer who will know several technologies is tempting. However, such an IT specialist usually costs more than three less skilled ones.
Layoffs in 2022 changed the situation in the labor market. Highly qualified developers have not become cheaper. And the salaries of many mono-developers who operate with 1-2 technologies have changed down. They are motivated to work better because their competition is very high.
- Don’t give up PM unless you are 100% sure
The administrating is exhausting. If your processes are not designed perfectly, you can lose more money than you plan to save. PM may seem excessive, but it is often a cost-saving measure.
- Involve the BA and Product Owner at the beginning of the project.
The timely involvement of specialists allows the reduction of the final team without damage to the development. It is also a way to avoid overpaying.
- Hire by calendar
Two important questions when planning dedicated teams are who and when to involve. Developing a calendar will allow you to keep the pace of work and simultaneously not overpay for several additional months.
A dedicated team is a good solution for scaling your internal team fast and cutting extra costs. At JetSoftPro, we go through all stages of the staffing process step by step so that you can make an informed decision. You pay only after the approval of IT specialists and the specified terms and scope of work.
Let’s meet for a free 30-minute consultation to discuss the details: https://jetsoftpro.com/contact-us/.