Growing popularity of outsourced software development services leads to appearing of new business models. A dedicated team model was established by IT companies not long ago but immediately became popular in the world of outsourcing. In this article, we are going to analyze all aspects connected with this business model, especially pros and cons of dedicated teams and other.
If you have already dealt with outsourcing companies, employees or services, then you are probably well aware of what a dedicated team is. But if you just think about outsourcing of some services as an option for your business, this term may sound weird to you. Simply put, dedicated team business model is a kind of business approaches in software development. A dedicated team (DT) is a team of software experts assigned to a certain customer’s project development. The outsourcing company chooses the right squad of employees that will manage to complete client’s project timely and meet the requirements. Further on, a client can manage this team by him- or herself or get a project manager of the services provider company assigned to coordinate the work of the team. Now, when you got a concept, let’s take a closer look at dedicated team business model.
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Money, money, money… Isn’t it the first thing everyone who wants to hire a dedicated team should worry about? Not in this case. First of all, you already save money on HR stuff because it is your outsourcing firm partner who has to gather a team for you. Secondly, the pricing here is simple and transparent: you will pay every teammate from the dedicated team his/her monthly salary and will cover service provider’s expenses that already include administrative and infrastructure overheads. Thus, there’s no chance you will overpay or get deceived.
To what projects it can be applied
Usually, this kind of cooperation works the best for long-term cooperation and when the requirements to the project and the scope of work are not clearly defined. It means that a client can submit any changes to the project development at any stage while the price for the outsourcing services will remain the same.
How does it actually work?
1. Customer explains to service provider company the main idea and concept of the project and has to determine the number of employees he/she wants to hire and what skillset the employees should possess.
2. Next, when the team is ready to work, they discuss the workload and all project requirements together with the customer.
3. When the project’s outline is discussed and asserted, the team set about their work during regular hours.
4. The client monitors and controls the project development process while the dedicated project team fulfill their tasks and assignments providing the required results.
As you can see, the model is a no-brainer and anybody can use it. So let’s find out what the advantages and disadvantages of the DT model.
Advantages of the dedicated team model:
• affordable, predictable and defined budget (as was mentioned above, there’s no chance you will overpay);
• reducing of HR costs and administrative overheads;
absolute and complete control over product elaboration via weekly reports from a project manager;
• absolute flexibility: you can provide any changes and adjustments to the project at any stage;
• a reliable team of professional developers that do know their trade and completely engaged in your software development;
• usually, one team is assigned to one project and each individual is assigned to a certain bunch of tasks, so that your teammates will be always available for the requests;
• the focus always lies on the assigned project so the team will be always concentrated on fulfilling their assignments;
• experienced project managers that will control timeliness of the completed tasks and the quality of the team members’ work;
• great collaboration between the outsourcing team and internal staff;
• excellent team cohesion;
• no need to spend time and money on educating your internal personnel.
Disadvantages of the dedicated team model:
• certainly, this model will not be effective for short-term cooperation;
• depending on the company service provider the costs can vary;
• if you manage the project development and the DT staff by yourself, then it can take some time and some nerves;
• gathering a team can be time-consuming;
• moral problems of the team members and as a result low quality of their work;
• the staff of the dedicated team have less opportunities and time for development of their skills and learn something new;
• client must always actively participate in communication, monitoring and management.
Depending on a customer’s company specialty, project requirements, team members and so on there may occur some more advantages and disadvantages. For instance, if you hire a dedicated team to develop a web application of your company, these developers can suggest for you a plan on developing a mobile application, too. And here it’s up to you whether your business needs a mobile app or it does not. Also, there can be a disadvantage of this model in terms of budget. Some outsourcing companies may charge you more for the Dedicated Team business model than for Time & Material business model. So you should thoroughly think what kind of a business model is better for your project and which outsourcing company you would like to work with.
Read also: How to outsource app development
Evidently, there are much more fantastic advantages of the DT model rather than disadvantages. While choosing the right model for your very project you should keep in mind a lot of important factors like:
• the scope of the project;
• available budget;
• the level of your management skills;
• how fast you need a project to be completed;
• how your team will cooperate with the outsourcing one.
It has been noted that everything in the software development is extremely individual. In terms of the dedicated team model you get a chance to choose the employees you want and need to have and assign tasks to them. What is really awesome about this model is that although this team will work with temporarily, they will become a part of your company and your personnel. Therefore, these employees will share your business vision, provide relevant ideas, got interested in achieving your business targets and developing the domain knowledge. Your dedicated development team will be fully customized to you and you can always change, customize and adjust new functionality and features based on the actual feedback. Also, if you especially consider Agile approach, the dedicated team model will perfectly match your needs in project development.
Read also: What type of outsourcing is better
Ultimately, you are the one who gets to choose. Take your time on making such an important decision which business model will suit you and whether the dedicated team model is right for your case.