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The dedicated teams model: When and how to use it, and is it the best outsourcing alternative?

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The Dedicated Teams Model: When and How to Use it, and is it the Best Outsourcing Alternative?

Outsourcing has been a long-standing trend in the IT industry. Many IT firms have recognized it and see it as a highly useful strategy for completing their software projects by distributing the work to outsourced organizations or remote teams.

After all, dealing with a long-term project is never easy unless you closely examine many of the critical factors beforehand. Finding the right qualified guys to get your project started is a key challenge.

Entrepreneurs and organizations prefer to hire dedicated teams to speed up the development of their software projects, save their money and attract new talents faster. You can hire whenever you need one.

Let’s explore why the dedicated development teams’ model is a one-fix-expert solution in terms of outsourcing.

What is a dedicated team model?

A dedicated team model is a kind of outsourcing in which a client organization hires a team of developers for their projects with the aid of an outsourcing partner. Typically, the client manages the entire team; however, the outsourcing partner may offer to hire project managers to support.

A dedicated team model is a solution for your skill demands within your organization, as it opens a cooperation model between the client and the outsourcing vendor. The vendor recruits a team of professionals from his talent pool who fit the clients’ needs and assigns them to complete their projects on schedule.

Aside from that, a dedicated team model offers a lot. We will examine why it is a model of choice for most businesses, how does a dedicated team model work, and what you should consider before hiring a team of professionals for your project.

What Is the process of creating a dedicated team?

When a client organization, such as yours, gives the goals, timetable, and scope of the project to your outsourcing vendor, the process of hiring a dedicated development team begins.

Depending on the complexity of your software project, you may be looking at different timelines and specific kinds of talents that you want in your team, which is why you may require consulting services to comprehend the full scope of your project.

The good news is that your organization can use IT consulting services provided by these vendor companies to assess the full scope of your software development project and eventually hire their services for gathering the dedicated team for your software projects.

Dedicated team engagement model, how should you proceed?

The process of this engagement model involves many steps. A client firm need not worry about a thing, as the IT services vendor will take on most of the responsibilities and will consult the client organization through all the steps. The following are the steps in the dedicated team engagement process.

1. The client outlines their requirements.

A client usually outlines their requirements for their project like what kind of product they want, and expectations from their product, what end-user purposes it will serve, and what other ideas they have regarding its specs and features.

2. The vendor evaluates the client’s needs:

Before beginning work, the vendor must review and assess the client’s requirements. A vendor can begin work on a project right away if they have a basic idea of how the product should look like.

3. The consulting step:

A professional team examines the project scope and develops a plan of action. This will include the project timeframe, dedicated team structure, and specifications, such as size and skill set.

4. The vendor assembles the team:

A vendor with a good talent pool can put together a team of top professionals who match the specifications of the project. A proficient vendor can assemble a large team of engineers in less than four weeks.

5. Handing over the control of the team:

Once the dedicated development team has been formed, the vendor hands over authority to the client firm. The client is now in charge of the team, they can define the roles, duties, and work schedules of each member of the team. Each worker is now an indispensable part of the client organization, and they must work and comply with the company’s internal policies throughout the project’s duration.

6. The management:

A vendor can implement several variations in the administration of a dedicated team model. This could include payroll management, corporate parties, or back-office paperwork. The ultimate purpose of such an agreement is to minimize the client organization’s stress as effectively as possible.

When to hire and when not to hire a dedicated teams model – the checklist

A dedicated team model is the most dynamic idea for dealing with the various software development-related difficulties that organizations face. However, there have been various instances where the need to adopt other outsourcing methods has proven to be more useful.

Let’s look at the scenarios in which employing a dedicated development team is the best option.

When is a dedicated development team needed

1. Large projects:

If you are working on large, multi-faceted projects with a wide range of tasks, your in-house team will be unable to handle it on their own. It is obvious that you need a dedicated team of specialists to fill these talent gaps and take part in the development process. It will boost the productivity of your developers and help you finish the project on time. For this, you need to determine the scope of your project, where the outsourcing partners’ consulting services will come in handy.

2. Long-term project:

Whether you are a well-established company or a startup, you will surely undertake new projects to achieve new goals or overcome obstacles. Short-term projects can be completed within a matter of months, whereas long-term projects will take more than six months or longer to complete. If you are willing to take on long-term projects, then hiring a dedicated team is the best option.

3. Requirement for greater agility:

Long-term projects must shift over time, as your goals and the market change, you will need a flexible development team to adapt to such events. A dedicated team model structure calculates shifting demands and goals at the proper time.

Unlike your in-house team, you may reorganize the composition of your dedicated IT staff, add new skills, and increase the tech stack as business needs change.

4. When you require greater control or to be in command of the project:

A dedicated team is a team that you can control. You manage them just like your in-house employees. You are the boss here, and you can control the whole team, project, and the resources at your will.

Being in charge of the project and the dedicated team structure, you could track the progress, have daily updates, and assess the performance of each developer, and therefore know what exactly every individual is doing.

5. Budget limitations:

The project’s primary motivator is money. Dedicated teams are considerably more cost-effective than in-house developers. If you’re on a tight budget, you must determine whether to save costs by limiting the number of features or by hiring fewer developers. Because of the reduced cost, a dedicated team model can help you in maintaining the balance. As a result, you get a project that fits the initial objectives without having to compromise on functionality.

When starting a new project, it’s important to know exactly what you’re getting into, so if you know you’ll be working on a complex long-term project, a dedicated development workforce is an ideal option. This could be a good option if you want more flexibility and control. In a word, these are the most important things to think about before employing a dedicated workforce.

When is a dedicated team model ineffective?

As with any engagement model, there are some limitations to its effectiveness that must be considered. Depending on your objectives, you may wish to consider other types of outsourcing and cooperation models. The dedicated team model is ineffective for the situations listed below.

1. Small projects:

It’s pointless to assemble a specialized team for too short projects. If you have a concept for a small project, you can engage numerous freelancers or stand-alone developers. You won’t notice a pricing difference when compared to software outsourcing, but you will save a lot of time searching for a business that can help you.

2. For running side projects:

If you have side projects in addition to the one you want to outsource, a committed team model will not work for you. A remote workforce needs frequent feedback and management from the client. If committed developers do not receive responses from an in-house team, they feel isolated and leave the project. It is critical to remember that software development is a collaborative process. As a result, you must ensure that nothing prevents you or your management from communicating with remote staff.

3. When your internal staff is unwilling to cooperate properly:

In-house developers usually feel superior to offshore developers in situations like these. They were involved in the project’s conception and consider themselves more privileged than hired developers. However, it is essential to inform your employees that even if a dedicated team is located many time zones away from the office, they are still considered part of the company for the duration of the contract. As a result, they must be treated with the same respect as everyone else in the organization.

If you realize that your staff is dissatisfied with this proposal, it is best to consider other solutions to avoid future misunderstandings and resentments.

Dedicated team model vs. other outsourcing models

Outsourcing is more than just dedicated teams; many other outsourcing models are available for different situations and project types. When comparing dedicated team models to other outsourcing models, the time and material model and fixed price model are two of the most popular ones. Let us discuss some advantages and pitfalls compared with the dedicated team model.   

Fixed price model vs. dedicated team

You will know the project cost from the start with the Fixed Price model. Once business analysts establish project specifications, they cannot be changed during the development process. Your tech partner takes all the risks in this system. If the estimations were incorrect and the project requires more production time, then the software development firm bears all the costs. To avoid risky situations, you must accurately describe your requirements and project goals. With a dedicated team model, you pay a team member salary as well as a company fee for the duration of the contract. Even if the project was completed ahead of the contract’s expiry date, you must continue to pay salaries to committed developers.

When is a fixed-price model an ideal option?

A fixed price model is the best option if: 

  • You are working on short-term projects. 
  • You have specific deadlines. 
  • Your specifications are precise. 
  • You have no intention of changing the specifications. 

It is important to recognize that this approach is best suited for short-term collaboration when there are so few unknown factors in the project. This model is considered the least flexible of all because changes cannot be made during development.

However, if you have a short project and a small budget, this model is the ideal option. You can understand all of the expenses straight away and then dedicate the remaining resources to marketing or sales activities.

Time and material model vs. dedicated team 

A Time & Material model implies that the dev team is compensated for the hours spent on project development. The project’s cost is computed using the following formula:  

Project cost = number of hours worked on the project multiplied by the hourly rate of the developers ($/hour). 

For example, if you signed a deal with a company that charges $40 per hour and the project took 1,000 hours, the overall project cost will be $40,000.
Depending on your budget, you can add or subtract specialists. As a result, Time & Material is a versatile model for projects with varying needs. 

When is a T&M approach useful? 

  • When the project is on the “raw concept” stage. 
  • When the client has no intention of managing the project. 
  • When the project is large. 
  • When the project has shifting requirements. 

T&M works best when it is hard to predict the total amount of work or the timing of its execution. The Time and Material model does not imply that you must only pay for a developer’s time or the resources he or she uses. 

The project is divided into tasks. Each work is estimated independently, and you can make any necessary adjustments or additions during the development process. The Time and Materials contract expects that you will pay when the task is completed totally or partially

Where to find and hire dedicated teams?

Outsourcing in IT has been popular for a long time owing to the abundance of resources for choosing a trustworthy partner. 

Clutch and other related services help you in gaining the basic information about various outsourcing organizations and client feedback. Potential clients can use them to evaluate the company’s dependability and experience. Here are some of the most popular services where you can find information on several specialized teams

IT Firms: – This platform generates lists of the greatest software developers in various geographic areas. You can utilize IT firms to screen out unsuitable candidates and keep just the best. 

Good Firms: – Good Firms is another platform that helps businesses in choosing a software development vendor. It features built-in filters that categorize professionals based on their expertise. The platform also generates data in many disciplines and industries that may be valuable when looking for a technology partner. 

Clutch: – Clutch is one of the most well-known platforms that gives information about various software development vendors. Here you can learn information about the size of the company, the minimum project cost, the location of the company, etc. 

All businesses have included the services that they provide in the description, such as AR development, DevOps services, and dedicated teams. Furthermore, you can check client reviews and the company’s rank in the global rating

Where can you find the top outsourcing destinations?

You should be conscious of software development rates in different areas when choosing a dedicated team. American vendors, for example, demand much more than peer firms in Eastern Europe, Asian, and Latin American regions. The price difference is due to the cost of living in each country as well as the salary of developers. 

Top destinations known for outsourcing are: 

  • Ukraine 
  • Poland 
  • Brazil 
  • India 
  • United Kingdom 

Dedicated teams at Nuvento

Nuvento’s dedicated development team has extensive experience in establishing and managing successful dedicated teams for organizations, ranging from corporations to startups. 

We have a well-organized system in place for getting the specific needs from the client and forming a dedicated team based on their requirements. We can simply expand our dedicated workforce if the need arises.