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Before diving into outsourcing details, it’s important to clear up with the whole service concept. What does a dedicated resource or team mean? A dedicated team model is an approach where clients hire a team of UIUX designer, BA, PM, Web or Mobile developers for their projects. It’s usually a team managed from the customer side.
Let’s figure out what stands behind the dedicated team model. Underneath, you can see stages that you go through as a client choosing a tech partner.
At this stage, you should clearly define your requirements and expectations. Business analysts gather this information to assemble the right team. In case you don’t have technical expertise, a company’s business analysts and engineers should help you draw up a feature list, figure out the tech stack, and make a rough estimate of your future project.
Once requirements are clear, the vendor defines what dedicated team structure is needed to deliver the project. Here’s an example of a dedicated team:
At this stage, you negotiate the price, payment frequency, and duration of the contract. Price flexibility is one of the main advantages of a dedicated team model, which we’ll cover later on.
After requirements and price are clear, the vendor starts assembling the team. The length of this process depends on how many developers you need. If you have a small project that requires several developers, chances are you get them by the next day.
However, if the project requires 20-30 developers, the company may not have that much at the moment. In that case, you’ll have to wait until other engineers become vacant or the company hires new specialists. It sounds like a long process, yet it’s still cheaper and faster than looking for developers by yourself (unless you have a team of experienced IT recruiters).
After assembling the team, it’s time to introduce the team to your project. Now, your task is to establish a communication bridge with a dedicated team, introduce remote specialists to your in-house team, explain how your corporate software works, and tell them about the workflow. Besides, it’s important to appoint an employee responsible for specifying the frequency of reports from a team and working those reports.
When everything is done, your new employees start on the project. Now the main task is to control and manage the process
As you now know what dedicated teams are, it’s high time to outline the benefits of this model.
Cost-Effectiveness
If you’re a resident of the US, Central, Western Europe, or Oceania, it’s doubtful that you’ll find a better value for money. A senior software engineer in the US charges $65/hour. This price is approximate and depends on technologies this specialist works with. If it’s a senior data scientist with deep expertise in machine learning and related technologies, the rate may reach up to $100/hour.
Mind that a single developer can’t build you a project, so you’ll have to gather a team. Even though junior developers charge far less, an in-house team of ten developers will cost you a lot of money.
With dedicated teams, your expenses decrease drastically. In Asia, developers’ hourly rates lie in the range of $19-$28/hour. That’s almost five times cheaper than in the US& Europe.
Besides, with a dedicated team model, you don’t have to expand your office for new employees because they work remotely. Other expenses like hardware, software, social package, recruiting also fall onto the vendor’s shoulders.
Team Management
A dedicated team is flexible when it comes to project management. Let’s assume that you’re a skilled programmer with vast experience. With this model, you can take over project management responsibilities and be in charge of the project.
In case you’re hiring a dedicated team for a side project or to take the load off your core team, you can entrust the project to the project manager from your office. An experienced PM from your side will communicate with a dedicated team and keep you updated.
If you don’t have such an employee in your office, you can hire a PM right from your vendor. Project managers from outsourcing companies have fluent written and spoken English and know how to manage projects. What’s most important is that the vendor’s PM is a part of the dedicated team. They’re often in one office with developers and so can manage them faster.
Cultural Fit and Corporate Ethics
Cultural fit is among the benefits of a dedicated team model. Even though dedicated teams work remote-only, they are still a part of the vendor’s company. As any business, software development companies choose only the best employees not only looking at hard skills but also paying attention to soft skills. Dedicated team members are great team players, know how to stay productive, motivated, and not lose focus from their tasks.
With the Fixed Price model, you’ll know the project cost from the very beginning of the project. When business analysts draw up project specifications, no changes can be made during the development. The tech partner may will charge a service fees to deep dive and prepare a detail scope of work or technical specification document.
This strategy puts all the risks on your tech partner. If estimates were incorrect and the project needs more development time, then the software development company takes all the expenses on itself. To avoid risky situations, you have to describe your requirements and project goals very clearly.
With a dedicated team model, you pay salaries of team members and a company fee during the entire contract. Even if the project was completed before the contract’s expiry, you still have to pay salaries to dedicated developers. That’s why it’s crucial to clarify all requirements and project details to estimate the development time precisely.
It’s important to understand that this model suits for short-term cooperation when the project doesn’t have many unknown variables. And because you can’t make changes during the development, this model is considered to be the least flexible of all. On the other hand, if you have a small project and a small budget, this model is the best choice for you. You can understand all the expenses from the start and allocate the rest of the resources for marketing or sales operations.
A Time & Material model implies payments for the time spent on the project. The cost of the project is calculated with the following formula:
For example, if you’ve signed a contract with the company that charges $40/hour and the time spent on the project was 2,000 hours, then the final project price will be $80,000. However, the work of business analysts, designers, DevOps, Solution Architects cost money too. You can add and remove specialists according to your budget. That’s why Time & Material is a flexible model for projects with shifting requirements.
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