Today, we live in the time of remote or work-from-anywhere models. Accessing talents has become easier. No wonder the demand for a dedicated project team structure constantly grows. In-house teams are not a must anymore. The global IT industry shows a 13% rise in outsourcing between 2020 and 2021.
Who is ahead of the planet in using a dedicated developers team structure? According to Statista, the US, Germany, the UK, Japan, and China are global outsourcing leaders. The main sources of their revenue are administration, web hosting, and application development. In 2021, these segments generated $351bn, confirming that outsourcing and dedicated teams generate solid income and positively affect business growth.
We at Peiko not only know the dedicated project team structure pros and cons but also practice this software approach for your large, long-term, and custom-tailored projects. Based on our experience, we’ve created this article to get you acquainted with the DTM in detail.
Let’s dwell on dedicated team structure in-depth for you to find answers to the most critical questions, such as:
In which cases do you really need a dedicated development team?
When is a time & material model better than the dedicated team?
How not to err when selecting a dedicated team provider?
What Does a Dedicated Project Team Structure Mean
By choosing a dedicated team software approach, you delegate the project execution to remote developers. And not only them, to be exact. Usually, the dedicated outsourcing team also contains quality assurance specialists, business analysts, and project managers. You may also be interested in adding copywriters and designers to the list.
But what is so special about this type of team organization? You’ve got the experts and skills to cover the project needs smoothly, uninterruptedly, and qualitatively. By this, you cut the production time to a great extent, economize your resources, and have no liabilities to go on the collaboration with the team after the project is finished.
Sounds incredible, right? But before jumping to decision making, better make a pause and find out more about the dedicated project team structure pros and cons.
What Are the Pros of a Dedicated Team Model?
Though there can be numerous arguments in favor of choosing the DCT, we’d like to draw your attention to the major ones. Check whether they matter to you.
True Devotion to Your Project
Well, the word “dedicated” doesn’t accidentally come to the title of the software approach. By hiring a remote team with the most relevant experience, you ask them to do what they can the best. As the specialists fill in the particular expertise gap, they’re motivated to do the job with an understanding of the industry and requirements. In turn, you call the shots.
Economy of Resources
In 2020, cost reduction was the number one reason for inviting specialists to realize your project goals and then go. You don’t need to rent an office with all the related expenses, think of a parking place for your employees, or deal with professional burnout and loyalty maintenance. Imagine cutting your costs up to 70% — it’s possible with a dedicated team.
Tight and Transparent Cooperation
By nature, the dedicated developers team structure presupposes the well-built and effective communication between its members. As they work on the same project under the project manager’s coordination, no transition challenges should occur. Instead, you know each sprint’s outcome and are pleased with a transparent workflow.
Customers’ expectations for new technologies, product options, and attractive features within these products are never static. That’s why, by giving preference to the development conducted by the dedicated team, you’re way more flexible in fixing the functionality details on the go. Ultimately, your product doesn’t lose the real-life value for the target audience.
Quicker Product Delivery
As you save time on production, it’s natural that you’re also quicker with the delivery. Nothing matters so much as the timely appearance in the market. In this view, the dedicated team structure raises your chances of meeting the delivery deadlines as everyone is in the right place to close a task in each sprint for a date agreed with the client.
What Are the Cons of Dedicated Developers Team Structure?
Every decision has advantages and disadvantages. Selecting the proper development approach is no exception. Have a look at the challenges that can pop up on your way to the project’s release:
It’s Not a Universal Solution for All Projects
Large, long-term, and complicated software development projects benefit from the dedicated team’s involvement. It's how to keep all processes in order and up to the schedule and client’s requirements. However, this approach appears ineffective for short-term projects, such as creating a simple website or an app on a template. It’ll be a costly and invalid choice.
You Should be Ready to Build the Bridge
Having a dedicated team doesn’t mean you must hire a complete list of specialists to cope with your project. Instead, you can search for the expertise that is lacking in your existing in-house team. And here, the new challenge comes — establishing the effective cooperation between the two teams and transforming them into a close-knit entity.
It Calls for the PM’s Talent to Make It Work
Though a dedicated project team structure is usually associated with productivity, focused effort, and high-quality result, these desired outcomes are attainable only under professional management. Hence, the major part of the burden falls on the PM’s shoulders. They are to predict risks, account for problem zones, and execute all operations wisely.
You Should Solve the Cultural Diversity Problem
The initial challenge starts with the different time zones, which creates the increased waiting time for a reply, scheduling difficulties, and possible delays. The other cultural nuances to note are the imposed language for documentation and communication (English) and the different understanding of quality among the team members.
It Evokes Doubt in the Efficacy of Virtual Communication
The movement to remote entails workers’ comfort, increased productivity, and greater work satisfaction. In 2022, 67% of employees favor working remotely due to the flexible schedule and lack of attachment to one place. Simultaneously, 30% of respondents claim that onboarding or coaching of the new team member significantly loses efficacy if held online.
Why Do You Need a Dedicated Development Team?
Get the Top Talents for Your Project
Hiring an in-house team is usually explained by the principle “there’s always somebody to solve a particular problem if needed.” In reality, it doesn’t work that way as your engineers, QA, PM, and BA have a limited scope of expertise. That’s why It’s better to hire remote experts with the relevant industry and product development experience per your needs.
Skip the Training Stage
If you delegate the task of building the dedicated project team structure to a reliable outsourcing provider, you shouldn’t worry about investing in technology or staff training. Usually, this close-knit team has previously closed similar projects together, and now they come to you. As for setting and controlling the workflow, it’ll be the PM’s duty.
Prioritize Your Time and Tasks
On the one hand, you get the maximum transparency of all the processes happening in the team, including the status of tasks after each sprint and the intermediate results. On the other hand, with the PM’s help and the project documentation to guide the developers, you can free yourself from team management and spend time on R&D, brand identity, marketing, etc.
Eliminate all the Redundancy
Reducing operational costs and extra expenses, such as HR, Finance, and Legal Advice, is the primary area you can control. In times of economic crisis and global disruptions, minding every penny is twice reasonable. The dedicated team structure allows directing time and staff resources in the best productive way, which brings value to the business.
Gain Flexibility in Making Changes
Agility is the characteristic of the efficient PM and team’s timely and qualitative realization of the set goals. In other words, even the clear-cut development plan may need some changes on the go. The dedicated team software approach stems from the Agile methodology, allowing developers to make as many iterations in the project’s building as necessary.
How Does a Dedicated Team Differ from Time&Material Model?
If you’re comparing the dedicated team vs time and material models, you should probably be searching for the best investment of capital. Peiko understands your concern and suggests seeing the difference in the following table:
Time & Material Model
Size of your project Small projects that start from the raw concept understanding
Expected duration of the project Predominantly short-term
Complexity of realization Below average
Payment specifics You pay for the time and effort spent on development
Control over the workflow Considerable, but incomplete
Targetting Narrow and unnumerous target audience; usually for inner team’s usage
Dedicated Team Model
Size of your project Large projects that require several iterations
Expected duration of the project Usually long-term
Complexity of realization Above average
Payment specifics You pay a monthly rate for each member of the team until the project is accomplished
Control over the workflow Full and transparent
Targetting Custom-tailored solution for wide use, with the expectation of conquering new markets
How to Select a Dedicated Team Provider Wisely?
When it’s crystal clear that you need a dedicated developers team structure, the next question that probably pops up in your head is where to go for help. The choice of a reliable IT outsourcing provider is no less responsible, so better look through this step-by-step guide:
Make proper research. CrunchBase, Clutch, Reddit, Quora, and LinkedIn will supply you with both an official company overview and the customers’ feedback on their services. You may also visit the company’s social media to make an impression on its marketing and brand story. Select your favorites and go further.
Examine the official site. Now compare the image in your head with the positioning spreading through the website. Are their services clearly described? Is the blog full of expert articles? What are the cases they’re proud of? Peiko has a solid portfolio to share with you right on the site. As an example, have a look at this cryptocurrency solution case!
Get the REAL feedback from former clients. Choose the case closest to your project specifics and contact their owner to hear the real-life reaction to the provider’s job done. Haven’t they embellished the story?
Discuss the project requirements and payment rate. Bombard the company with all the questions you’ve prepared ahead to find out the approach to work. Inform them about your priorities and budget to check the fit.
Check out the ready documentation. Devote a moment to read the project documentation to reduce possible misunderstandings and fix things before the start.
Choose a Win-Win Scenario for Your Project
The crazy competition race of today pushes business owners to set their priorities right from the start. Choosing the dedicated developers team structure allows everyone to commit to the project according to their strengths. While the team is engaged in building, testing, and improving the solution, you shift your time and effort to the more strategic and creative tasks.
Sounds like a good plan? Contact Peiko, and we’ll readily help you build the customized software solution with our dedicated development team. Among our benefits are transparent UI, a full QA cycle, server stability, and the timely delivery of your project. Drop us a line to get your business request!
Any questions left? Check our FAQ below for a deep dive into the topic.
How can you be sure a dedicated development team model is right for the project?
Your project is long-term and requires specific industry expertise to cope with the task at high speed and quality. Also, you need flexibility in bringing changes and having the whole picture of how the project realization goes.
Who needs a dedicated team?
Companies that aren’t restrained by the budget prefer hiring a ready-made team of talents to fill the skill gap instead of running the development in-house.
What is the difference between staff augmentation and DTM?
Staff augmentation connects the skillful engineers with the client for a short period. In contrast, a dedicated team model implies long-term cooperation with the team of developers, QA, BA, and other required specialists. It’s supervised by the PM to run the project from scratch to its release smoothly.
What is the process of hiring a dedicated team?
Choose a reliable provider (follow the guidance above) and delegate them the task of hiring the relevant team of experts.
How can I verify the experience of a dedicated team?
Usually, you cab evaluate it when interviewing your potential provider. Ask them about their previous experience in creating remote teams, time frames and costs, an overall approach to business, and success cases to rely on.