A dedicated development team is a model when an outsourced team works on a single project, from ideation to deployment and, if required, maintenance and support. The global IT outsourcing market in general is expected to grow significantly over the next few years. Between 2024 and 2029, revenue is projected to increase by $271.7 billion, representing a 50.22% jump. Many companies prefer to outsource their projects to dedicated teams because it's more profitable.

In this article, we'll discuss the differences between various team models, explore circumstances in which hiring a dedicated software development team might be the best decision, provide a comparative table of hourly rates in different regions, and list the important considerations before hiring a team. We'll start with the tasks, benefits, and structure associated with a dedicated development team model.

Hiring a dedicated development team: Who benefits and how

Hiring a dedicated development team can greatly help in finishing complex projects, accelerate time-to-market, and allow businesses to focus on their core goals. It's particularly beneficial for enterprises that lack certain development experience and are in urgent need of a digital product. Because a dedicated team focuses on a single project, it helps maintain a consistent workflow, making planning easier for the client.

This type of ongoing collaboration is a solution for those who want to create a product without the lengthy process of searching for specialists, hiring them, and dedicating HR resources to staff management, especially when constant coding is no longer needed. Talking about the types of businesses a dedicated software team might serve - almost all types can benefit. However, let's look at more specific examples.

Startups

For those who are just starting out, outsourcing can be an excellent solution to enter the market quickly without building an in-house team or allocating resources for team development. In the case of startups, the outsourced team acts as the engine for rapid development and scaling.

Small and medium-sized businesses

These companies can benefit from hiring a dedicated team by expanding their development capabilities without the need to hire new engineers for a full-time in-house team. For instance, a dedicated software development team can be hired to develop a specific part of an app, so the company doesn't need to create a permanent position just for this task.

Large enterprises

For large enterprises, a dedicated development team might be hired to build a side project separate from the main product. Similar to small and medium-sized businesses, a large organization may require specialized skills to develop specific apps or facilitate digital transformation.

Non-tech companies

Any company that doesn't specialize in tech services but needs an app to enhance customer satisfaction can benefit from hiring a dedicated software development team. This way non-tech companies don't need to establish an IT department or possess extensive technical knowledge to evaluate specialists. For example, if a restaurant requires a delivery app to improve customer experience, it can simply select an IT company that offers a dedicated development team model with strong reviews and successful case studies.

Businesses with multiple projects

If a company is managing multiple projects simultaneously, it may be convenient to outsource a portion of them. By collaborating with a dedicated software development team, the company can efficiently handle these projects, knowing that a separate team is taking care of and maintaining some of them.

Types of tasks

Basically, a dedicated team can handle any volume of tasks that a client requires, from building a single feature to creating an app from start to finish and then maintaining and supporting it. Let's outline the services that clients might expect when working with a dedicated development team.

Consulting

Before commencing any project, dedicated development team providers propose technology solutions that meet the client's product requirements. The team can also offer guidance on future product upgrades.

Web development

A dedicated software team can build and maintain websites and apps, creating both the user-side and server-side of the product. Designers, responsible for the website's appearance, ensure it has a unique style and is responsive across different devices and browsers.

Mobile app development

A dedicated team can develop and design apps for iOS and Android platforms, using native programming languages or cross-platform frameworks based on the client's requirements. They can also enhance the performance and design of existing apps.

Custom software development

If a company opts for custom software development, a dedicated team can assist with this task as well. The hired team can help with enterprise software systems implementation, specific business applications, third-party services, and APIs integration.

UX/UI design

You can hire a design team solely to design user interfaces for web or mobile products, or have design as part of a full dedicated team service, where it's one of the steps toward a fully completed product. The UI/UX team can also provide services like branding and logo creation if needed.

QA and testing

Writing unit tests is essential in product development to ensure that the software is bug-free and functions correctly. Detecting and resolving bugs can be part of the support and maintenance services.

Maintenance and support

Once the app is uploaded to the online app stores or the website is deployed, a dedicated software development team can continue to support the product, ensuring it functions properly and receives necessary updates and upgrades.

DevOps

The expertise of DevOps engineers is often needed for complex projects that require multiple updates. DevOps services include deployment pipelines, cloud infrastructure management, process automation, and other procedures that ensure the system's reliability and scalability.

Benefits

Here's a brief outline of the dedicated development team model benefits.

Cost efficiency

Hiring a dedicated development team reduces costs associated with recruiting, hiring, and managing specialists.

Talent pool

The opportunity to outsource a project globally provides access to professionals who are versatile in technologies and possess expertise that perfectly fits the project's requirements.

Flexibility and scalability

Unlike a complete in-house team, it's easier to scale the team size up or down based on the project's needs. Furthermore, the team is assembled according to the project's requirements right from the start.

Focus on strategy

While a software development team works on the project, the client can fully focus on strategic operations and address internal changes that have long been needed but never had the opportunity to be implemented.

Time efficiency

You don't need to perform onboarding or training when hiring a dedicated development team. Project development begins the day it's initiated, without delays, with an already assembled team.

Dedicated development team structure

The structure of a dedicated development team depends entirely on the project's objectives. However, there are some key roles involved in full-cycle project development, as outlined below.

Business analyst

A business analyst is responsible for translating project requirements into actionable development plans. They identify business needs, study the industry-specific market, break down a project into features, and help the client align those features with their budget and timeline expectations.

Project manager

A project manager acts as a mediator between the client and the development team. This specialist regularly updates the client on the project's progress, facilitates communication between parties, and ensures that all deadlines are met.

Designers

The design team is responsible for creating logical and visually appealing interfaces with a distinctive look and feel, intuitive navigation, and accessibility.

Developers

A dedicated software developer makes the product functional. The development team consists of specialists whose skills match the project requirements, such as frontend, backend, and mobile developers.

DevOps engineer

We've already discussed what DevOps services entail. In general, any project that requires efficient workflow management, consistent code integration and deployment, and robust infrastructure management needs a DevOps engineer on the team.

Hiring a dedicated development team vs staff augmentation vs in-house development

There are different team models suitable for various project needs. Companies can choose to work with a dedicated development team, augment their staff with specialists, or build everything in-house. Let's explore the pros and cons of these models in more detail.

Staff augmentation

This model involves having an in-house team that works on the project but lacks certain specialists, such as a DevOps engineer, who can significantly enhance in-house resources and boost project development. To fill in this temporary job-position, a company hires an outsourcing DevOps engineer without the commitment of a full-time employee.

Pros

• One of the pros of staff augmentation is an opportunity to add specific skills as needed, which is ideal for companies with a complete team that requires just one additional detail to make a mechanism work.
• Unlike in-house development, staff augmentation offers significant cost savings as a developer is hired only for the required duration.
• Compared to hiring an in-house team, the staff augmentation model offers faster onboarding since the existing team remains unchanged.

Cons

• Since such specialists are temporary on the project, they may be less committed to the project.
• Coming from a different work culture, these specialists may require adjustments in team dynamics to integrate smoothly.
• Even though the onboarding doesn't take long in case of the staff augmentation, there is still a potential for communication and integration challenges.

In-house development

In-house development simply involves building a product with the company's own employees. With this model, a company uses internal resources to manage, develop, and execute projects. In-house development teams often foster a strong sense of ownership and commitment to the project, as team members are directly invested in the company's success.

Pros

• A company has full control over the project flow and team dynamics.
• Team members often have easier communication and collaboration since they worked together for a long time.
• Compared to the staff augmentation model, new team members hired in-house will have to adopt the company culture.

Cons

• Costs are higher for recruiting, training, and retaining talent compared to both staff augmentation and dedicated team models.
• In-house development is limited by the skills and availability of the employees. To enhance skills, it requires investments in workers' education and training.
• Scaling up the team takes longer as it involves searching for candidates, vetting them, and onboarding them.

Compared to hiring a dedicated development team

An evaluation of staff augmentation and in-house teams demonstrates that the preferable model highly depends on the business's specific needs. For short-term partnerships aimed at addressing a lack of expertise, staff augmentation can be the better model, especially when there is already an in-house development team working on the project. Meanwhile, a dedicated team is ideal for those who do not have an IT team or are not ready to expand their team for a secondary project that accompanies the main product.

Regarding the difference between in-house and dedicated teams, the level of dedication to the project is the same, but operational costs tend to be lower with a dedicated development team. Additionally, cooperation with a dedicated team can last as long as the project requires, similar to working with an internal team.

Below is a table summarizing the differences between these models.

Where to find a dedicated development team: current hourly rates as of the end of 2024

So, you've decided to develop your project with a dedicated software development team. The next question is, which one should you choose? When opting for a dedicated team, you're not restricted to a specific time zone, giving you access to talent from around the world. The first step is to check review platforms where clients share their feedback. There, you can find detailed reviews, various listings, ratings, and, of course, average project costs.

Prices vary depending on the region where a company offering dedicated development services is located. Providing an average project cost is not efficient since hourly rates change annually, and the total project cost depends on the number of features and the complexity of the design. Additionally, maintenance and support costs can vary even further. Let's take a look at the hourly rates for development and design in different regions. We provide current rates as of November 2024, followed by management and quality assurance costs.

North America: $75-100 per hour

Management cost: $500-600 per week

Quality assurance: $30-50 per hour

This region, being the most expensive, offers advanced technologies with highly skilled engineers. Following stricter data privacy and security standards, teams from North America have a high demand for creative solutions.

Central Europe: $65-100 per hour

Management cost: $450-550 per week

Quality assurance: $25-40 per hour

Central Europe possesses a highly educated talent pool with long-standing engineering traditions, especially in countries like Germany and the Netherlands. Dedicated teams here are skilled in complex enterprise solutions and strive to maintain high-quality standards.

Eastern Europe: $50-80 per hour

Management cost: $320-350 per week

Quality assurance: $20-30 per hour

The region's strength lies in offering cost-effective and robust talent pools in tech, particularly in countries like Poland, Estonia, Ukraine, and Romania. With versatility in various programming technologies, development teams from Eastern Europe are noted for their direct communication style and strong work ethic.

Latin America: $48-75 per hour

Management cost: $300-400 per week

Quality assurance: $18-28 per hour

This region offers timezone proximity to North America, facilitating easier collaboration. The communication style is relationship-focused, with a strong emphasis on long-term partnerships. Additionally, the region boasts a growing pool of skilled tech talent, making it an attractive option for dynamic and scalable projects.

South Asia: $45-70 per hour

Management cost: $250-350 per week

Quality assurance: $15-25 per hour

Another cost-effective region with a large tech talent pool. India stands out for its IT services. Culturally, South Asian teams focus on hierarchical business environments and relationship building.

Southwest Asia: $44-53 per hour

Management cost: $240-330 per week

Quality assurance: $14-24 per hour

This region includes rapidly developing countries in software development. Teams in the UAE are gaining strong expertise in fintech, cybersecurity, and AI. When collaborating with Southwest Asian developers, clients can expect an emphasis on trust and face-to-face interactions.

Important things to consider before hiring a dedicated development team

Now that we've covered dedicated development as a concept, let's outline a step-by-step plan for hiring the perfect team.

Define project scope

The first thing to do is to clearly outline the objectives, deliverables, and any specific technologies or expertise required for your project. Knowing the result you would like to achieve will help you ask the right questions to the prospective dedicated team. Don't worry if you haven't figured out all the features needed for the project; you can discuss these with the team. It's the team manager's responsibility to provide you with an approximate calculation of the software's user flow, development timeline, and costs before the project starts - at least that's how we do it at Ronas IT.

Learn about technical expertise

As a client, you don't need to possess in-depth knowledge of the project's technical execution. However, you can expect an outline of the technical solution the team proposes to bring your idea to life. Reviewing their past work and asking about specific technologies they plan to use can provide additional confidence in their capabilities.

Consider cultural and timezone compatibility

If timezone and cultural compatibility are important to you, look for dedicated development teams that are geographically closer to you. Selecting a team with similar cultural values can enhance collaboration and mutual understanding. Speaking from our experience at Ronas IT, timezone differences do not significantly affect product quality and communication effectiveness.

Check portfolio and feedback

The most popular platforms among software development companies that offer dedicated development team services are Clutch, Goodfirms, and UpWork. While not all companies can share their full portfolio due to NDAs, a reliable vendor should still have some form of a portfolio. You can usually find case studies on software companies' websites. A good case study provides comprehensive information on the technical solution to the business problem, demonstrates a deep understanding of the industry, honestly shares challenges faced and resolved by the team, and offers at least approximate numbers on time and cost. If you're interested in the designs a dedicated team provides, you can find examples of platforms like Behance and Dribbble.

Assess flexibility and scalability

Ensure that the team has strong communication practices, such as regular demos, progress reports, and a readiness to engage in meetings and discussions. Typically, detailed updates are shared with a client every two or three weeks, but if more frequent updates are required, a dedicated team should accommodate this need. Use review platforms, especially Clutch, to assess the team's work ethic and communication efficiency.

Evaluate pricing and contract terms

Set a budget for the development of your product and consider your preferred hiring region. Then, review the team's pricing models. Some agencies might be flexible in these matters. Large projects usually follow a time-and-material approach, where the price is calculated based on hours spent on development, whereas smaller projects may have fixed pricing. Even though every company has its fixed hourly rate, the pricing model can sometimes be negotiable. In addition to pricing, ensure the agency informs you about contract terms, confidentiality agreements, and termination clauses. You should have access to your code and design at any time, as all created materials belong to you.

Consider post-release support

For software to remain functional and up-to-date after release, consider post-development support and maintenance services, which are typically available by subscription. Extra support like bug tracking, system monitoring, and 24-hour support may cost more. For examples of such services, see our DevOps services page . Collaborating with a dedicated team that offers comprehensive post-release services ensures your software adapts smoothly to emerging needs and challenges.

Discuss security and compliance

Ensure that the team adheres to security best practices and is familiar with compliance requirements relevant to your business, such as GDPR, HIPAA, SOC 2, PCI DSS, ISO/IEC 27001, and other regulations. Evaluate the team's experience with these standards during the hiring process to ensure they can effectively manage sensitive data and maintain compliance.

To sum up

With the outsourcing market expected to grow significantly in the coming years, a dedicated development team offers numerous advantages, such as cost efficiency, flexibility in project scaling, and access to a wide pool of specialized talent.

Dedicated teams are suitable for companies of all sizes - ranging from startups looking for rapid development to large corporations needing specific skills or wanting to expand capabilities without building a full in-house team. Hiring a dedicated team also allows businesses to focus more on their strategic goals while ensuring projects are completed efficiently and effectively.

To make an informed decision, it's crucial to evaluate key factors such as cultural and timezone compatibility, client feedback, communication practices, and pricing, as well as ensuring strict adherence to security and compliance standards. Thus, utilizing a dedicated development team can be a strategic and advantageous decision, meeting the growing demand for software innovation. If you're looking for a company providing dedicated software development teams for projects of any complexity and scope, we're ready to help. Just fill out the form below to let our managers know, and we'll get back to you within 24 hours.