Dedicated Team Model: Pros, Cons and How It Works

The dedicated team is a model of cooperation between a customer and a provider of software development services, and as a result a customer gets a team of specialists at their disposal, who are selected according to the requirements of a project.

The target team is focused entirely on this project and a customer gains control over the working process and the members of the team. An outsourcing company undertakes the obligations to hire developers and provides the required administrative support.

Gallup’s State of the Global Workplace report found that only 15% of employees worldwide are engaged in their work. Dedicated development teams often report higher levels of engagement because they work on specific projects and have clear goals.

The dedicated team model has a rather transparent and simple pricing model: the sum of a monthly payment is predetermined by the team you would like to hire, namely the number of specialists and their skills.

How Does it Work?

The easiest way to explain it is to see how the work is divided into several stages. In the case of the dedicated team model it will be the following:

1. A customer explains his requirements, the final result that should be achieved, the number of team members and what skills they should have.
2. A service provider (an outsourcing company) selects appropriate employees who meet the project’s requirements.
3. The workload is agreed upon together with the customer. People build a team and get to work.
4. The team members focus solely on this particular project to ensure the best result. The customer in return gains total management control over the project and the team.

This helps to provide and maintain a high level of efficiency, as well as high motivation among specialists, who have and share the same vision as the customer regarding the best results of their work.

The U.S., one of the top outsourcing destinations, has a market value of $62 billion of the total international revenue.

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When the Dedicated Team Model Can be Used

This model of cooperation can be successively applied in the following cases:

• you are planning long-term strategic relations with a service provider company;
• you need a complete team of varied specialists, but you can’t hire them for your company;
• you expect that during the development process the project’s requirements as well as the members of the team may change;
• you want to complete the project faster, reducing the development costs.

It is recommended to use the dedicated team model for all the projects that have one common feature. This is that work on the project that will be constantly maintained and enhanced in the future.

7 Benefits of the Dedicated Team

One of the main advantages of the dedicated team model for a customer is a minimum period of time between their decision to begin a project and the moment when the actual work begins. But there are also a number of other undeniable advantages – each of them in some particular situations may become a great benefit:

• pre-defined monthly budget;
• the costs for searching for and choosing the required specialists can be substantially reduced;
• the members of a team stay focused on one project and are able to understand the specifics of a product better, as well as the business requirements of the customer;
• flexible cooperation – provides an opportunity to adjust the team configuration according to the changing specifications of the project;
• steady communication between the customer and the members of the team ensures close collaboration, which allows the team to achieve maximum efficiency;
• the customer doesn’t bear the costs to maintain an office and other administrative costs, or they are minimal;
• scaling opportunities – the number of people who work on this project can be increased anytime.

One more important thing – the long-term value of a project increases due to the accumulated expertise and knowledge preserved.

The Dedicated Team Model May Include the Following Risks

This model has few disadvantages, but it’s still best to take them into consideration:

• this model demonstrates low efficiency when working on short-term projects;
• members of the team have fewer opportunities to learn outside their field in the project;
• the customer must take an active part during communication and negotiations, as well as invest a lot of time in management.

In general, such a model is a good choice in the majority of cases; however, it’s extremely important to understand the main pros and cons to make the right decision.

Statistics show that hiring a dedicated development team is a popular practice for companies of all sizes, with 92% of G2000 companies and 37% of small businesses outsourcing projects to external vendors.

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Let’s summarize

One of the key aspects of the dedicated team model is that you get a team of top-notch specialists at your disposal, with all the required skills to successfully complete your project.

In addition, you don’t need to hire them and you can manage the configuration of the team depending on the project’s changing requirements during the development process.

Lvivity offers services including the dedicated development team to create and support software products. If you are interested in such a model, feel free to contact us, and we will answer all your questions.

At Lvivity we have developed a diligently structured approach that allows us to organize a dedicated team according to the customer’s requirements. The high level of professionalism of our developers, and many years of experience and competent management – all of these things allow us to provide our customers with a quality product within the agreed time frame.