The average time to hire a new employee was 31 days in 2023, which means it takes a month to find one specialist. But what if you need an entire software development team? How much time and money would it take to hire enough tech specialists?
In this article, we’ll explain the dedicated development team model and why it’s great for long-term projects, explore its key benefits, and share some tips from Neontri experts on how to organize cooperation with a dedicated development team.
What is a dedicated software development team?
A dedicated team is an engagement model where organizations augment resources with external specialists who work exclusively on the project long-term. In this model, the team provided by a third-party vendor becomes an extension of the company and fully integrates into workflows.
Typically, a dedicated development team includes:
- Developers: front-end, back-end, or full-stack, depending on your needs
- A dedicated project manager who coordinates and oversees task delivery
- Quality assurance engineers who test your software
- UI/UX designers who create user-friendly interfaces
- Other specialists as needed, e.g., DevOps engineers, data scientists
So, companies get a complete development team dedicated exclusively to the company without the need to conduct a long, tedious hiring process. The model benefits various businesses, but it’s particularly useful if a brand has a long-term and complex project but lack the time or resources to search for the right talent.
On top of that, a dedicated team is the engagement model if you:
- Want full control over the development process
- Consider the option of scaling the project and team later
- Need niche specialists that are challenging to find
- Want to begin a project quickly
Dedicated teams vs. other engagement models
There are various methods and sources to find and hire a skilled development team. Each option has its pros and cons, and there’s no one-size-fits-all solution that works for every business.
Dedicated team vs. staff augmentation
The staff augmentation model allows businesses to add extra talent to their existing workforce when specific expertise, rather than an entire team, is needed. For example, if a project requires an additional developer or an expert skilled in a particular technology, companies can contact a vendor to request a specialist to join their existing team.
Here’s what distinguishes this model from a dedicated team:
- Staff augmentation adds a specific expert to a current team to complete a specific task or function, whereas, in a dedicated team model, an entire team is assembled to work on your project long-term.
- Staff augmentation specialists work within your team. In contrast, a dedicated team operates as an independent unit integrated into your company’s workflow.
- Staff augmentation often ends once a task or function is complete, while a dedicated team is typically a long-term partnership. This team usually remains engaged for the entire duration of a project or continuous support.
- Staff augmentation specialists report to your current management, while dedicated teams typically have a project manager or team leader who oversees operations and acts as your main point of contact.
Bottom line: When you hire a dedicated software team, you get a ready-to-go workforce committed to your project from start to finish. In contrast, staff augmentation provides help that complements your existing team.
Dedicated team vs. project outsourcing
At first glance, the dedicated software team model might seem similar to IT project outsourcing, but these approaches have fundamental differences. Outsourcing involves delegating the entire software development process to a third party, with minimal involvement from the client. Let’s compare:
- With project outsourcing, you entrust the entire project to a vendor. At the same time, a dedicated team functions as an extra team within your company or even within a complex multi-team project.
- An outsourced team delivers a predefined result within a set scope and timeline, whereas a dedicated team provides ongoing support and adapts to evolving project needs.
- Project outsourcing usually means less direct involvement in your business, whereas dedicated teams work closely with you and align with your business goals. This is why tapping into specialized application development expertise through outsourcing becomes a strategic move for companies lacking specific in-house capabilities.
- Outsourced development teams offer less flexibility to adjust project requirements mid-course, especially if you engage in a fixed-price contract. Meanwhile, a dedicated team easily adapts to new goals and directions.
Bottom line: With project outsourcing, you’re free from managing the development process and simply receive the results outlined in the contract. In contrast, a dedicated team integrates into your workflow and works on the project under your high-level management, offering greater flexibility to adjust the development course.
For high-stakes initiatives like SaaS platforms, a clear roadmap for outsourcing SaaS development can be the differentiator between market entry and enduring profitability.
Dedicated team vs. in-house team
Both in-house teams and dedicated teams offer a long-term commitment to your project. Experts hired through these models are fully integrated into your organization, conform to your processes and methodology, and focus on achieving your business goals. However, they differ in terms of flexibility and cost structure.
Here’s what sets these two models apart:
- In-house team members are recruited and hired by your company. Meanwhile, dedicated teams are provided by an external partner on a contractual basis.
- In-house teams are on your payroll, and in addition to full-time salaries, you’ll cover payroll taxes, benefits, office space, equipment, and software. In contrast, dedicated teams are employed by a vendor and work for you under a service contract.
- In-house teams are a part of your company, while dedicated teams function as remote departments, often operating from different locations.
- In-house teams require a lot of recruitment effort to scale, whereas dedicated teams offer the flexibility to add new experts easily upon request.
Bottom line: Both models offer great collaboration and full control. However, assembling an in-house team is more expensive and less flexible than the dedicated team model.
How to choose a suitable engagement model for your specific needs
Deciding on the right engagement model can be challenging. The table below outlines key factors to consider when choosing the option that best fits your needs.
| Question | Dedicated teams | Staff augmentation | Project outsourcing | In-house teams |
| What is the scope and complexity of the project? | A large, complex, long-term project | Covers specific tasks/roles within a project | Small to medium-sized projects with clear goals | Ongoing core business project/operation |
| How flexible is the budget? | Medium flexibility: need a predictable estimate for the near term | Medium flexibility: need a predictable estimate for the near term | Low flexibility with fixed-price contracts; high flexibility with T&M contracts. | High flexibility: long-term, often unpredictable investment |
| How much control do you need over the process? | Medium control: make all high-level decisions, and the team handles day-to-day tasks | High control: hired expert works under your full guidance | Low control: a vendor manages the entire process | Full control over all aspects of the team’s work |
| What is the project’s timeline? | Hard to define timeline: a complex & long-term project | Limited timeline: need an expert only for the duration of a specific task or function | Fixed deadlines for fixed-price contracts; flexible for T&M contracts. | Unlimited timeline |
| Do you already have internal resources? | Yes, but need to extend them quickly with an additional team | Yes, but need to extend them quickly with an additional expert | No, I don’t want to rely on my own resources | No |
| Do you need long-term collaboration? | Yes, I look for continuous partnership | No, I need collaboration only for the duration of the task/function | No, I need a development team for the duration of a specific project | Yes, I need ongoing engagement |
| Is integration with your workflow important? | Yes, I want external experts to adhere to my processes and methodologies | Yes, I want external experts to work as a part of my in-house team | No, the team can work according to their own processes | Yes, I want to hire experts for my in-house team |
| Do you want to change the team structure as the project evolves? | Yes, so I want the ability to scale up or down quickly | Yes, I need a tech expert for specific tasks only | No, I need a team with a specific structure to complete a project | No, I want the team to work for my company on a permanent basis |
Which engagement model you choose depends entirely on your needs and expectations. If you’re unsure which one to pick, the Neontri team can help. Book a meeting with us, and based on your project requirements, we will determine the best option for you.
Key benefits of the dedicated development team model
When you hire dedicated teams, you invest in a close, stable, and lasting collaboration. But that’s not the only reason businesses choose this option. Here, we’ll explore the main strategic advantages of the dedicated development team model.
Streamlined recruitment processes
Assembling an in-house team requires significant investments in job postings, interviews, onboarding, and comprehensive training. According to data from the Society for Human Resource Management (SHRM), the average cost of hiring a new employee in the United States is $4,700.
Partnering with a service provider who can assemble a dedicated team offers a more streamlined alternative. Such vendors provide skilled professionals who can immediately begin working on your project upon contract signing, eliminating the complex and expensive recruitment and preparation processes.
Specialized expertise
According to Statista, the biggest recruitment challenge is tight talent pools. This makes finding specialized expertise challenging, particularly when confined to local job markets or geographically limited search. The dedicated development team model effectively resolves this problem. By providing access to a global talent pool it makes it easier to find rare experts your project may require.
Moreover, companies specializing in dedicated development team services heavily invest in continuous professional development training of their specialists. This approach ensures that clients receive highly skilled developers with the necessary technical certifications and domain expertise. Such technical readiness supports the deployment of professional software team scaling frameworks that prevent structural instability during periods of rapid growth.
Fast project kick-off
Unlike the lengthy hiring process required for in-house teams, which can take weeks to months, vendors have immediate access to pre-vetted candidates. This enables them to rapidly assemble a customized team, kickstart the project, meet tight deadlines, and reduce time-to-market.
Furthermore, even when a vendor doesn’t have immediate matches for your dedicated team within their existing talent pool, their extensive recruitment networks and established hiring processes allow them to quickly source the necessary experts. This flexibility ensures rapid team formation, minimizing potential delays in project launch.
Flexible team structure
As project requirements evolve—whether with changes in workload, shifting priorities, or revised timelines—you may need to scale your team up or down. With a dedicated software team model, this process is easy. The vendor can quickly add specialists with the right skills to meet the growing demand or reduce the team when there is less work.
In contrast, changing the structure of an in-house team is more time-consuming and costly. Hiring additional experts or terminating employment relationships is a lengthy process that comes with extra expenses, such as recruitment costs and unemployment or severance pay.
Access to expert knowledge
With a dedicated team model, you get access to the specialized skills and experience of professionals who know how to br