Today’s businesses know that only profitably delivering services to their customers is not enough. They want to become more effective, able to respond, and more agile. This is how they can fulfill customers’ quickly-changing expectations and deliver a great customer experience.
Most companies want to take advantage of new technologies to reinvent their business model, cut costs, and improve operational efficiency. This is possible yet challenging for business executives as there are a large number of technologies, methodologies, and platforms available.
In addition to this, the COVID-19 pandemic highlighted the importance of the digital environment and digital presence. To accelerate digital transformation, organizations are keen to maintain their tech focus and enhance digital capabilities. One way businesses can stay agile and manage change is by outsourcing software development needs.
Software is a key to digital transformation and so are software developers. But at present, finding and hiring software developers is a hard mountain to climb. There are several reasons for this. The IT industry is rapidly changing and there is a talent shortage of software engineers worldwide.
In recent years, there has been an increased demand for software engineers as more and more organizations are embracing digital transformation.
Digital transformation and business growth are not possible without tech talent, which increases the demand-supply gap.
Korn Ferry’s Global Talent Crunch study indicates a potential global talent deficit of more than 85.2 million workers by 2030.
Another research from the same report predicts that technological advancement across all sectors of the economy could be hindered by an acute global labor shortage of 4.3 million TMT (technology, media, and telecommunications) workers by 2030.
Global talent shortage reaches a 16-year-high as 3 in 4 employers report difficulty finding the talent they need.
This finding is taken from the 2022 global talent shortage report by ManpowerGroup.
IT and data professionals are the most sought-after professionals by employers worldwide. This makes it even more difficult to hire the right talent that meets the tech industry’s emerging needs.
However, the reality is beyond just the shortage of software engineers. It also affects how companies hire software developers.
Here is the answer that helps deal with this global talent crisis.
To keep up with the market demands, companies need to fill the required talent gap by hiring a dedicated software development team.
Now, what is a dedicated software development team? Let’s find out in this article. This guide is written with the intent to educate startups, small, and large organizations on the dedicated development team model and how it benefits all.
What Is A Dedicated Development Team?
A dedicated software development team is a popular outsourcing partnership/collaboration model in today’s software development world.
A large number of organizations prefer a dedicated development team to fulfill their IT needs. It is one of the best outsourcing engagement models where a team of professionals is provided by a software development company to handle long-term business projects.
A dedicated development team is made up of developers, designers, testers, marketers, and managers as per the business requirements. It acts as your in-house team but you are free from managing administrative support, HR, tax, and social-related issues.
You can choose professionals and form a remote team that works like your in-house employees. To be specific, they are not like your in-house employees, they act like one.
It can be better described as an on-demand workforce that is hired to accomplish your objectives. This team works remotely and you can communicate and manage them directly with the help of management software or structure.
Many software development companies offer a dedicated team model as one of their main services. You choose a team of professionals that work exclusively for your project. You need to pay developers and designers for the hours they worked for you. The rates are predefined hourly rates and you can easily scale up/down resources as per your requirement.
There are certain reasons for its popularity.
The global pandemic has enforced companies to implement digital strategies that are resilient, secure, and agile. This is the need of the hour.
These all problems can be best addressed with the help of a dedicated development team.
A specialized and skilled team of remote developers meets your needs at right time and provides your organization with the best possible outcomes.
Having the right talent and skill set is the key to a sustainable future.
Currently, there are many outsourcing options and engagement models available but hire dedicated developers – this model is the best fit for companies of any size as it offers many advantages over other models.
Let’s discuss several reasons to choose a dedicated software development team and what the benefits of a dedicated team model are.
Any collaboration model has its pros and cons. Each requirement has a set of parameters to be taken into consideration and based on that, you need to analyze which model to choose. A dedicated software development team is beneficial in many contexts and delivers amazing results.
Here are some of the advantages of hiring a dedicated team of developers.
One of the major challenges organizations face today is hiring the right talent. Hiring developers is time-taking and difficult as we are passing through the Great Resignation Era post-pandemic. Along with that, many companies and countries are facing a talent shortage of qualified professionals. Forming your in-house team seems a time-consuming, costly, and tedious task.
In this scenario, hiring remote developers will solve all your problems. With a great deal of experience and expertise under their belt, a dedicated team is easy to hire. Instead of a tiresome recruitment process, you can contact a vendor who provides hire dedicated developers, discuss your needs, interview candidates, review their work, know their skills, and simply onboard.
They are specialized in different areas and thus, they can jumpstart your next project.
Cost-effectiveness is the prime reason why companies choose to hire remote developers.
Here are some particulars that prove why hiring dedicated developers from India is beneficial.
According to Salary.com, the average hourly wage for a senior software engineer in the United States is $56 per hour.
The average data scientist salary in the USA is $64.70 per hour as per talent.com
The average hourly pay for a senior software engineer is $64.07 in the United States according to PayScale.com.
If you are a US or UK-based company, you can easily outsource your IT needs to Asia, Africa, and Eastern Europe where you can find skilled developers at the cheapest rate. These regions became a hub for offshore software development.
In India, the developer hourly rate in India is $30 and it may go up to $100/per hour depending upon experience, skills, market condition, location, and technologies.
Along with that, if you hire a development team, you don’t have to worry about infrastructure, workplace expenses, taxes, recruitment processes, and training as they work remotely. A remote team is cost-effective and an easy way to choose from a global talent pool. Location is no longer an obstacle and you can heavily save on infrastructure and administrative overhead.
As we have discussed above, customers’ demands and expectations change often. Also, complex solutions involve a set of technologies and frameworks that require a specific skillset. In a dedicated team model, you can easily hire an expert developer with specific expertise.
A dedicated development team can easily adapt to your ever-changing needs and doesn’t require re-estimate/reconsider of pricing, unlike the fixed price model. Unpredictability in today’s software development will be better handled with the help of dedicated software developers.
When you choose to hire software development team from a third-party vendor, scalability won’t become an issue. The reason is – it is easy to hire additional developers when your project needs increased capacity and functionalities based on demands.
To cater to this demand, external teams can quickly adjust to the needs and add additional resources with the right skill set. Scaling up will be hard when you have to go through the interview and onboarding process for new employees and also need time and resources to make them familiar with the ongoing project.
You have access to top talents globally when you consider this model for software development. Whether you are a startup working on an innovative idea or a small business managing day-to-day operations, you can easily find all types of dedicated software developers with various tech skills and expertise.
A dedicated team of developers is well-versed in various technologies and they possess experience working on different projects. This experience and expertise make them suitable for all types of projects. This is quite difficult to achieve with your in-house team.
Dedicated teams offer many advantages that other models can’t provide. But, there are some scenarios where choosing a dedicated development team is beneficial.
Let’s learn when dedicated teams are the best option.
A dedicated team is a perfect fit when you have large projects with frequent updates – planned or unplanned. This model is suitable for complex, long-term projects that have the potential to scale. It is cost-effective and allows you to focus on your business priorities rather than simultaneously spending time in management and running a business.
If you have time constraints or you are facing a talent crisis, hiring dedicated developers can solve all your problems.
Your company’s in-house team might not have the specific expertise or specialized skills that are required to complete the task. In case of adding new features that require rare talent or advanced skills that are difficult to find, a dedicated team model is a winner.
Keep in mind that a dedicated software development team is solely focused on your project. They not only develop but share their insights, views on technologies and trends, and so on. They also adapt to the new technologies faster. If your project is dynamic and incorporates new technology/new features, a dedicated team quickly accommodates themselves to the latest technologies and trends.
However, it is not a one-size-fits-all solution. This model is not suitable in certain scenarios.
There are some situations where you have short-term and defined requirements. In such a case, the fixed-price model best fits your needs. It is also possible that you don’t require full-time resources and there is no need to hire specialized skills for certain projects. In that case, a fixed-price model or T & M Model will sufficient to meet your needs.
As we have said each model has pros and cons. Your selection of collaboration model depends on parameters like scope, time, and budget.
Let’s discuss the disadvantage of a dedicated development team.
Before you hire dedicated team, you must consider several limitations of this model.
You have to deal with different time zones when you hire dedicated software developers. But if you follow agile methodologies and be consistent in your communication, you might solve this problem. Time zone greatly varied across the world. However, this is a negligible problem but with proper guidelines and a modern approach, this can be resolved.
As we have said earlier that offshore dedicated team is not suitable for all types of projects. When your project is short-term and when there is no scope for evolvement in your requirements, you can choose other models that best fits.
The other models that are popular in the market are:
Time & Material
Let’s compare the dedicated team with other models one by one.
As its name suggests Fixed Price is a pricing model that is based on an upfront price decided and agreed upon by both parties to accomplish a specific task. In this model, there is less attention on resources and time spent on the project. The price is solely project-based and is perfect for the small and medium-scope budget.
In this model, requirements must be clear from the very beginning of the project. Making changes in requirements during development will become difficult and risky. This model is suitable where requirements are clear with the defined scope of work.
It does not offer much flexibility in development, unlike the dedicated team model. This is why it is suitable for small projects with defined requirements.
This is also a popular engagement model where clients pay for time and resources that are spent on a project. It follows an agile development process and it gives the most flexibility in terms of requirement and scope. The costing can be based on hourly rates plus the cost of materials.
One of the biggest advantages of choosing the t&m model is flexibility – you can change requirements, add/remove functionalities, shift directions, and modify the scope.
However, you will have less control over your budget as requirements are not clear and you need to constantly ensure that your team is working in the right direction.
It is important to note that the pricing model that worked well for a particular organization may not become suitable for others. You can weigh the pros and cons of each according to your requirement and then decide.
Now, that we have seen a comparison of dedicated vs fixed price vs t&m, let’s talk about popular outsourcing destinations.
IT outsourcing has been around for a long time. It again came into the spotlight as a majority of the organizations prefer outsourcing their IT needs to reduce cost, maintain large-scale projects, access top talents, and focus on core business development.
There are many software development companies that offer hire dedicated developer services and you can easily find them by searching.
There are many review platforms available from where you can get information about a company’s services, location, price, portfolio, and focus areas.
Here are some top outsourcing destinations/countries to consider:
Certain factors make countries suitable for outsourcing. One of the primary factors that matters the most is lower cost. Along with cheaper outsourcing rates, developed IT market, infrastructure, educational opportunities, scope, and language.
Time zones also play a crucial role when choosing your outsourcing partner. India is considered the best country for outsourcing and there are some good reasons.
This makes it easier for US and UK to choose India as their outsourcing destination. Also, the Indian education system has a huge number of engineering graduates every year. Indian developers are proficient in logic, math, and computer science, making them a good fit for any type of software development needs.
Cheaper rates, high-quality software, negligible time-zone issues, and seamless communication – all these advantages make India a very suitable country for hiring a dedicated development team.
Many companies in India offer various models to choose from for outsourcing needs. But, among all models, the dedicated team model is the most suitable model for engagement between two parties.
SPEC INDIA offers a dedicated software development team that you can easily connect with, discusses your requirements, form a team, and start working on your idea. It’s that easy!
30+ years of experience in the IT industry make us capable to fulfill diverse needs across all industry verticals. We offer a wide range of services and work with the latest technologies that empower founders to build a digital foundation for their businesses.
We have different engagement models to help our clients effectively plan their requirements and onboard the developers they need.
To hire dedicated experts, follow this simple process.
Before you proceed ahead with discussing requirements, you can define your objectives and budget. You can also describe your project, idea, talents you require, and team size.
You can assess the skills, expertise, and soft skill proficiency of resources and then shortlist the ones who are the perfect fit for your requirements.
Based on your requirements, you may choose one or several resources that are specialized in a particular technology/programming language clubbed with QA, architects, managers, and designers.
You can create your dedicated team of shortlisted candidates and let them know your requirements for communication, workflow, and management. You may select tools and methodologies that you will be used for management, communication, and integration
You can get started quickly once your team is formed. As they are already shortlisted, you are all set to start working on a project. You can scale easily at any time and you also don’t have to manage your team and manager round the clock. Seamless communication and daily reporting make work much easier for you. A dedicated software development team allows you to focus on your core business rather than spending time on management and IT overhead.
You can hire development team from SPEC INDIA for the Below technologies/frameworks/platforms.
We also have a large skilled resource pool for frontend, backend, and web development. You can also hire UI/UX designers, DevOps engineers, QA experts, and business analysts for your end-to-end product development.
Our business intelligence and data analytics capabilities helped world-famous clients to create data-driven strategies across organizations.
A dedicated development team is the best choice for budding startups, growing enterprises, small businesses, and projects that have complex requirements. For enterprises that have long-term projects, a dedicated team is an ultimate choice that helps them cut costs and quality solutions that meet goals.
Here’s a quick summary of why a dedicated team is an ultimate choice in comparison to other hiring options available.
As you can see, hiring a dedicated development team is the most cost-effective option without compromising on quality. Instead of facing hiring challenges, you can easily and quickly hire dedicated team and transform your ideas into digital realities.
SPEC INDIA, as your single stop IT partner has been successfully implementing a bouquet of diverse solutions and services all over the globe, proving its mettle as an ISO 9001:2015 certified IT solutions organization. With efficient project management practices, international standards to comply, flexible engagement models and superior infrastructure, SPEC INDIA is a customer’s delight. Our skilled technical resources are apt at putting thoughts in a perspective by offering value-added reads for all.