Outsourcing dedicated development teams is becoming increasingly popular among businesses, with the market value exceeding $92.5 billion. More than two-thirds of companies in the USA prefer to outsource their tech professionals. A dedicated software development team collaborates remotely with clients worldwide to achieve multiple goals, from completing milestone-based projects to committing to long-term tasks.
A-listware has been at the forefront of IT outsourcing solutions for software development, web development, mobile app development, testing and QA, web design, digital transformation, and many others. Our dedicated development teams work in over a dozen industries, including finance, healthcare, retail, manufacturing, and logistics.
The main reasons companies resort to outsourcing include cost-saving and improving efficiency, with almost a quarter of small businesses using outsourcing for this exact purpose. In this article, we will dwell on the benefits and possible risks of working with a dedicated IT development team and discuss the existing team models, costs, and the outsourcing process for your customized dedicated team of developers with A-listware.
What Does a Dedicated Team Model Look Like?
A dedicated development team is a perfect synergy of your company’s resources and the talents provided to you by the outsourcing firm. Businesses assign a dedicated project manager or tech lead to govern all the technical and organizational processes to comprise an effective team of developers for a certain purpose or project. The graph below perfectly demonstrates the structure of a dedicated software development team model.
A vendor of the dedicated team, in turn, gathers several experienced specialists according to the requirements and expectations of the company. The main difference between an outsourced team and your in-house employees is that in the case of a software development dedicated team, all the management responsibilities are entirely undertaken by your outsourcing partner. Each professional is hand-picked based on your criteria, and the firm takes care of the hiring process, interviewing, and naturally integrating every talent into your working environment. Therefore, you can concentrate on more urgent issues and fully dedicate yourself to the critical processes of your company.
Who is a Dedicated Team Composed of?
Dedicated development teams include key figures overseeing different aspects of your technical project:
- Project Manager (PM). The PM oversees the project’s progress, ensuring timelines, budgets, and deliverables align with client expectations. They act as the primary point of communication between the client and the team, managing resources and resolving any roadblocks.
- Business Analyst (BA). The BA bridges the gap between business needs and technical implementation by analyzing requirements, gathering client input, and creating detailed documentation. They ensure the team builds a solution that aligns with the client’s goals and market demands.
- Software Architect. The architect designs the project’s technical structure, selecting frameworks, tools, and technologies to ensure scalability, performance, and security. They define high-level design patterns and guide engineers in implementing the architecture effectively.
- UX/UI Designer. UX/UI designers create user-friendly and visually appealing designs by focusing on user experience and interface layout. They develop wireframes, prototypes, and design systems to ensure the final product meets user expectations and branding requirements.
- Software Engineers write and maintain the codebase, implementing features and functionalities according to requirements. They collaborate with other team members to ensure the product is efficient, maintainable, and aligned with the project’s goals.
- Quality Assurance (QA). QA professionals test the software to identify and resolve bugs, ensuring the product meets quality standards. They create test cases, perform manual or automated testing, and verify that features work as intended under various scenarios.
- DevOps. DevOps engineers streamline the development process by managing infrastructure, automating deployments, and ensuring system reliability. They focus on CI/CD pipelines, monitoring, and optimizing workflows to enable seamless collaboration between development and operations.
Dedicated Development Team or a Fixed-Price Model?
Businesses often choose to outsource dedicated development teams rather than fixed-price models. While each approach has its advantages and downsides, the best solution depends on your project type, criteria, and long-term expectations. Below is a breakdown and detailed comparison of both hiring options.
| Aspect | Dedicated Development Team | Fixed Price Model |
| Definition | A team of developers working exclusively on your project, usually long-term. | A predefined project scope is completed for a fixed cost and timeline. |
| Project Scope | Flexible and adaptable; scope can evolve during the project. | Rigid and clearly defined at the start; changes require renegotiation. |
| Cost Structure | Monthly salary or hourly rates based on team size and duration. | Fixed one-time payment, predetermined during the contract phase. |
| Risk Level | Shared between client and vendor due to ongoing collaboration. | Shared between client and vendor. |
| Client Involvement | High; the client participates in decision-making and direction. | Low client involvement is limited after defining requirements. |
| Ideal for | Complex, long-term projects or when requirements may change. | Small, short-term, or well-defined projects with clear outcomes. |
| Flexibility | High resources can be scaled up or down based on needs. | Low changes may lead to delays and additional costs. |
| Time Management | Ongoing development: milestones evolve during the project. | Strict adherence to predetermined timelines. |
| Quality Control | Higher control, as the client oversees progress continuously. | The vendor assumes responsibility for quality within the agreed scope. |
| Examples | Startups, evolving software products, R&D projects. | Website design, small app development, or one-time features. |
| Budget Predictability | Variable, as it depends on team size and project duration. | High, as the cost is fixed in advance. |
| Vendor Relationship | Long-term partnership, often integrated into the client’s workflow. | Transactional, limited to the duration of the project. |
Dedicated team or a Time & Material model?
Although relatively close in nature and purpose, a dedicated development team for hire and a time & material model have specific differences. A model in which you pay exclusively for the time and resources used for the project is alluring, especially to small or middle-sized businesses. Still, you shouldn’t forget about the possible pitfalls of this approach. Look at an in-depth comparison of both to decide which works best for your case.
| Aspect | Dedicated Team | Time & Material (T&M) Model |
| Definition | A team of developers exclusively working on your project long-term. | A model where clients pay for actual time and resources used on the project. |
| Project Scope | The team is flexible, often broad, and aligned with evolving project needs. | Semi-flexible; scope can change but impacts cost and timeline. |
| Cost Structure | Fixed monthly or hourly rates for the entire team. | Payment is based on actual hours worked and resources used. |
| Risk Level | Shared between client and vendor due to close collaboration. | Mainly on the client, as costs can increase with scope changes or inefficiencies. |
| Client Involvement | High; client actively engages in planning, prioritization, and daily updates. | Moderate to high; client reviews progress and approves ongoing work. |
| Ideal for | Long-term projects or continuous development with changing needs. | Medium to short-term projects with evolving requirements or unclear scope. |
| Flexibility | Very high; team structure and scope can adapt as needed. | High; scope adjustments are straightforward but affect costs. |
| Time Management | Development happens on an ongoing basis, with dynamic deadlines. | Time is tracked for specific tasks or phases; deadlines are fluid but monitored. |
| Quality Control | High: the client has direct control and influence over the process. | Sound quality is based on the time and resources allocated. |
| Examples | Product development, startups, software with continuous updates. | Feature enhancements, support services, prototyping. |
| Budget Predictability | Moderate; depends on team size and duration but predictable monthly costs. | Low; costs depend on actual time spent, which may vary. |
| Vendor Relationship | In long-term collaboration, the team becomes an extension of the client. | Project-based or recurring for specific tasks; less integrated than a dedicated team. |
Dedicated Development Team: When You Need One
If you are currently preparing a project that requires hiring a dedicated development team, make sure that your plans align with the checklist below. In these cases, outsourcing your dedicated team will benefit your company the most.
Early-stage Startups
Startups often require fast development, flexibility, and access to various skills. With a dedicated team, startups can entirely focus on business growth and use the resources of a reliable technical team to develop their product simultaneously. Besides, having a dedicated team will help fledgling businesses better perceive and adapt to feedback since they will get first-hand overviews and improvement suggestions from specialists with years of experience in the field.
Projects with vague requirements
If the project scope is unclear or likely to evolve, a dedicated team can offer the flexibility to adjust priorities and timelines. Thanks to continuous collaboration with a dedicated team, businesses can accommodate vague goals or volatile market conditions faster and without significant delays or quality drawbacks in the product.
Long-term projects
A dedicated team ensures consistency and deep product knowledge for complex projects requiring sustained development and support. For products that have ongoing updates or planned expansions in the future, a dedicated team can become a strong partner that quickly adapts to the changes or improvements in the project. The main benefit of a dedicated team for long-term projects is that with time, the professionals learn to know your product better and provide valuable feedback on what can be improved or updated to meet user needs to the fullest.
Dedicated Team Model: When It Doesn’t Work
Sometimes, a dedicated team of talents and its services might not work for you. Before deciding, analyze your project type, characteristics, goals, and expectations and see whether they align with any of the criteria listed below.
Short and middle-term projects
Hiring a dedicated team may be inefficient and costly for projects with a limited duration. When you have a detailed and accepted project plan with clear milestones to be achieved, there is no need to involve professionals whose expertise in the sector might be unnecessary or even redundant. Other models, like Fixed Price or Time & Material, are better suited for completing shorter projects with clear deadlines.
Limited time and budget
Opting for a dedicated development team when your budget is limited can be like jumping over your head. Most often, keeping highly skilled and costly talent on your team is unnecessary when there are no sufficient resources to unleash their potential to the fullest. When your project has a strict deadline and budget, it’s best to resort to a fixed-price hiring model.
The project scope is fully defined
A dedicated team’s flexibility becomes unnecessary when the project requirements are well-documented, stable, and unlikely to change. You don’t need to pay for resources beyond the planned scope, nor need insights from dedicated professionals when you already know what and how you will do it. In such cases, consider better and less costly alternatives, such as the fixed-price model.
How do you allocate your budget when building a dedicated development team?
The cost of outsourcing a dedicated team of experts for your project varies depending on several criteria, including your geographical location, project type and complexity, and the professionals you require for your particular case. The table below shows a detailed price breakdown for building your dedicated software development team.
| Role | Hourly Rate (North America) | Hourly Rate (Latin America) | Hourly Rate (Central & Eastern Europe) |
| Project Manager | $96-$123 | $59-$82 | $53-$78 |
| Business Analyst | $109-$154 | $56-$68 | $57-$81 |
| Software Architect | $139-$182 | $72-$96 | $71-$95 |
| UX/UI Designer | $79-$100 | $48-$75 | $53-$71 |
| Senior Developer | $143-$172 | $65-$82 | $68-$76 |
| Intermediate Developer | $119-$144 | $53-$66 | $47-$65 |
| Junior Developer | $75-$91 | $41-$53 | $35-$53 |
| Quality Assurance (Automated) | $167-$174 | $35-$72 | $32-$74 |
| Quality Assurance (Manual) | $139-$162 | $34-$66 | $26-$61 |
| DevOps | $148-$214 | $59-$82 | $62-$79 |
As you can see, to correctly calculate the required budget for your dedicated development team, you must clearly understand which roles you need to fulfill. For this, list priorities by asking yourself one simple question: Which professional my project won’t do without? Then, compare the costs of hiring your required specialists with different outsourcing partners and define the most cost-effective solution.
Why is A-listware a Good Choice When Hiring a Dedicated Development Team?
A-listware has over 10 years of experience outsourcing dedicated development teams for businesses from various industries. Perhaps we are the solution you are looking for. What can you expect when working with A-listware for outsourcing your personalized tech team?
- It’s more affordable than in-house staffing. Accelerance reports a 23% increase in hourly rates across software roles in 2022, highlighting the cost savings of dedicated teams. Hiring a full-time developer in the US or Western Europe costs $125,000–$200,000/year, excluding recruitment, onboarding, and benefits. Dedicated teams eliminate these expenses, with affordable talent available in regions like Central & Eastern Europe and Latin America.
- It resolves team scaling problems. Demand for software engineers is projected to grow 25% by 2032 (8x faster than average). Dedicated teams let you quickly scale up to meet deadlines without competing for scarce talent.
- You’ll get a jump on time-to-market. You can assemble a dedicated team in 2–6 weeks, accelerating project timelines and ensuring faster delivery.
- You’ll have access to developers with sought-after expertise. Robert Half reports that 90% of tech managers find sourcing top talent challenging. Dedicated teams offer specialists from global hubs, like Eastern Europe, with expertise in healthcare, fintech, and banking expertise.
- Your office will be up and running around the clock. Remote teams offer extended coverage, with two 8-hour shifts providing 16 hours/day of development, doubling capacity.
- It frees resources to concentrate on your core business. Dedicated teams free up internal resources, enabling companies to focus on strategic priorities and deliver transformative technology solutions.
As you can see, outsourcing with A-listware can simultaneously help your company overcome multiple challenges. Transfer the hiring process to an outsourcing partner to save yourself time on manual recruitment and get a dedicated team built to meet your project requirements swiftly and for a justified cost.
Dedicated Development Collaboration: A-listware Process
At A-listware, we use an individual approach to every client’s case, helping them outsource a team of professionals where each link is fully dedicated to the project. Here are the standard examples of our collaboration steps:
Scope estimation
Once we receive a request from the client, we thoroughly study the project, requirements, and expectations. Then, we do a primary assessment of our talent database to estimate the scope of professionals whose skills and experience would best suit the project.
Talent selection
Then, we conduct testing and interviews with professionals to assess each’s skills individually. During this screening stage, we run tests and further explore the experience of every specialist in a similar niche. The main goal is to determine the best candidate to fill every position on the team.
Scope call
Once the talents are handpicked, we plan a scoping call to form the team and assess the compatibility of specialists and their skills and how effective their synergy will be for the client’s project.
Proposition call
During the proposition call, the client meets the team outsourced by A-listware face-to-face. After short presentations of each team member, the client sets their expectations for the project and future collaboration.
Kick-off call
The last step of the process is a kick-off call. On it, the team officially starts working with the client and gets assigned the project’s first milestone. A-listware, in the meantime, takes care of the administrative side, allowing the client to fully concentrate on running their business.
Conclusion
You should consider outsourcing a dedicated software development team when your startup is in its early stage, the project has vague requirements and objectives, or when it is projected to be complex and long-term. Outsourcing a team of tech specialists has proven effective in multiple sectors and industries, and there isn’t a single niche in which using the expertise and skills of outsourced professionals wouldn’t bring the project to its best version. Are you prepared to test the benefits of a dedicated development team first-hand? A-listware is one call away, ready to curate the most efficient solution for you.
FAQ
What is a dedicated development team?
A dedicated software development team is a scope of professionals outsourced to work on your project. These teams are hand-picked by outsourcing firms that estimate and interview every candidate individually to determine how well they meet the client’s expectations.
How to choose a dedicated development team?
The best way to choose a dedicated development team is to resort to an outsourcing partner like A-listware with your project. Describe its type, nature, and requirements so that an outsourcing firm can properly select the most suitable candidates for the job.
When to hire a dedicated development team?
Hiring a dedicated development team for startups, projects with vague requirements, or long-term goals is best. Experienced professionals will not only do the job you require from them but also contribute to the further growth of your product by giving feedback and suggesting improvements as it develops.
How to hire dedicated developers for your project?
To hire dedicated developers, partner with a trusted vendor offering dedicated team services. Share your project requirements, select candidates from their talent pool, and onboard a team that matches your technical and cultural needs.
Why hire dedicated developers instead of freelancers?
Dedicated developers offer long-term commitment, better team integration, and consistent quality compared to freelancers, who often juggle multiple clients. They work as an extension of your team, ensuring stability and scalability for complex or ongoing projects.
