How to Hire a Dedicated Development Team: The Ultimate Guide

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? The answer to these questions leads many businesses to seek more efficient ways of expanding their software engineering capabilities. And the solution is often a dedicated development team.

This approach offers a proven way to access top-tier talent quickly and cost-effectively. 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 you augment your resources with external specialists who work exclusively on your project long-term. In this model, the team provided by a third-party vendor becomes an extension of your company and fully integrates into your workflow. It also follows your company’s policies and works with your methodologies. 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, you get a complete development team dedicated exclusively to your company without the need to conduct a long and tedious hiring process. This can benefit many businesses, but it’s particularly useful if you have 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 for you if you:

• Want full control over the development process
• Consider the option of scaling the project and team later
• Need niche specialists that are hard to find in your region
• Want to begin a project quickly

Dedicated teams vs. other engagement models

You can use 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. Let’s explore the most common engagement models alongside the dedicated team option to help you determine which best meets your needs.

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 your 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.
• 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 your 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.

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.

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.

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 bring your vision to life, solve complex technical challenges, and offer valuable suggestions for improvement. At the same time, you retain complete technical ownership of your project. This means you have decision-making authority over the project’s architecture, design, implementation, and overall direction.

Flawless project execution

A dedicated development team model allows you to make key strategic decisions by providing a team that is entirely focused on your project. These remote professionals seamlessly adapt to your existing workflows, align closely with your organizational goals, and participate in regular check-ins, streamlining project execution.

At the same time, you don’t need to be involved in every detail. A dedicated team typically includes a project manager or team leader who serves as your main point of contact. They manage day-to-day coordination, handle communication with your internal team, ensure strategic alignment, maintain timeline adherence, and proactively address any emerging challenges. This allows you to concentrate on high-level priorities and overall business objectives.

Step-by-step process for hiring dedicated development teams

Choosing a dedicated software team model is a smart and convenient way to bring your project to life. However, it goes beyond merely selecting a vendor—you must understand and clearly communicate your needs. To help you navigate the process, we’ve outlined the key steps that will help you hire a dedicated development team.

Step #1: Conduct a comprehensive analysis of project needs

To understand what experts you’ll need in your dedicated project team structure, you must first list your project requirements and the skills needed. What technologies do you want to use? What level of seniority is essential to develop your software? Do you need specialists for specific tasks like building payment gateways, developing custom APIs, or implementing advanced security protocols?

Step #2: Research potential vendors

Vendors vary in their approach to dedicated development team services, their experience, and the talent pools they can access. So, you need to research companies that match your requirements and check customer reviews on third-party platforms like Clutch. Also, review their portfolio or case studies to see if they’ve worked on projects similar to yours.

Step #3: Create a detailed request for proposal

A request for proposal (RFP) outlines your project’s goals, timeline, technical needs, and security requirements. It aims to give potential vendors the information they need to assess if they’re a good fit to submit a bid. The more details in your RFP, the more accurate the proposals for dedicated development teams you’ll get in return, and the higher the likelihood of finding a perfect match.

Step #4: Evaluate and compare vendor proposals

Once you receive all the proposals, it’s time to decide which vendor you want to work with. Check the vendor’s understanding of your requirements, the complexity and success of their past work, their proposed timeline, and their pricing structure. However, we recommend not to focus solely on the cost, as the cheapest option may not always be the best. Instead, look for a team with the right balance of expertise, quality, and value.

Step #5: Negotiate the contract

After you choose a vendor, you can negotiate the contract terms. This discussion should include key areas, including cost structure, payment schedules, confidentiality agreements, intellectual property rights, security protocols, and mechanisms for resolving potential issues or disputes. Addressing these elements ensures that you and the dedicated software development team are aligned on legal and operational matters, which is crucial for a smooth collaboration.

Step #6: Onboard your new team

Finally, you need to introduce the dedicated team to your employees, which can include a formal welcome session. You’ll need to set up necessary accounts and access permissions, show them the tools and software your in-house team uses, and familiarize your new employees with your internal processes. Finally, you need to ensure knowledge transfer from your existing development unit to the dedicated team to bring them up to speed on any ongoing work or context relevant to the project.

How much does a dedicated software development team cost?

The cost of hiring dedicated developers is essential for effective budgeting and decision-making. This expense involves a complex calculation of direct and indirect costs that can significantly impact a project’s overall budget. Understanding the pricing structure requires examining developer skill levels, geographical location, technology expertise, project complexity, and the specific engagement model chosen.

Factors influencing the cost of a dedicated team

When you partner with a vendor through a dedicated development team model, the payment is calculated based on the team structure: a salary for each team member plus the service provider’s fee. But developer salaries can vary significantly, depending on several factors:

• Technology stack. The tech stack influences the cost of dedicated development team services due to varying programmer salaries across different specializations. For example, in the United States, PHP developers cost an average of $7,583/month, while Python developer salaries start at $8,250/month.
• Geographic location. Differences in living standards and labor market conditions affect average developer salaries across countries. You can leverage these differences by hiring an offshore dedicated team from a lower-cost region. This will allow you to save money while accessing professionals with the required expertise. For example, compared to US rates, PHP developer salaries in Poland are significantly lower, starting at $1,700 monthly for developers with comparable skills. 
• Level of expertise. The more complex your project, the more experience the specialist on your dedicated team will need, which will influence your cost. Also, expect higher salaries if your project requires rare skills, like AI or data science expertise.

Price structure comparison: A dedicated team vs. other models

When comparing engagement models, the pricing structure varies significantly across different approaches:

• Dedicated teams operate on a predefined cost model that includes developer salaries and vendor fees. 
• Staff augmentation also follows a predefined cost approach, combining the developer’s salary with a vendor fee. 
• Project outsourcing typically uses fixed-price or time and material (T&M) contracts.

Regardless of the price structure for an external software development team, you want your investment to deliver a positive return on investment (ROI). However, the quality of your ROI depends on how well the engagement model addresses your project’s specifics:

• The dedicated team model typically offers the highest ROI for complex projects that require ongoing involvement from specialists with deep expertise.
• Staff augmentation is best suited for well-defined tasks within a project, as it provides the specific skills needed on a temporary basis.
• Project outsourcing delivers the best ROI for short-term projects under a fixed-price contract. For projects with dynamic or unpredictable requirements, a T&M contract can offer greater cost-effectiveness.

Potential extra costs

Typically, a dedicated team has a simple and clear pricing structure. However, the total cost of ownership may include additional expenses, such as:

• Overtime: Additional work outside the team’s regular schedule generally costs extra.
• Training: If your internal systems or project specifics are complex, you may need to invest time and resources in training your remote developers before they begin work.
• Software and tools: The team may require access to various tools, software, or platforms for the project, which increases the overall cost.

Working with dedicated teams: Common challenges and solutions

We’ve discussed how beneficial, convenient, and cost-efficient the dedicated development team model can be for complex long-term projects. However, like any approach, it comes with challenges that you need to be prepared for. Let’s explore these challenges and possible solutions.

Managing time zone differences

When working with an offshore dedicated team, coordinating schedules can be tricky. The time zone difference between your location and the team’s can be anywhere between two and fourteen hours. However, if you work with an experienced vendor of dedicated development team services, they’ll help you overcome this challenge. For example, you can find overlapping working hours that suit both teams and arrange regular meetings. 

Securing data and protecting intellectual property

Allowing a third party to access your systems and sensitive data raises security and intellectual property concerns. However, these risks can be effectively managed by: 

• Signing non-disclosure agreements (NDAs) with dedicated teams provides legal protection, formally binding them to confidentiality regarding your internal information and project-specific details.
• Adding intellectual property clauses in service contracts is crucial for preventing disputes and ensuring that all work produced by the dedicated team is legally transferred to your company. 
• Limiting the dedicated team’s access to sensitive data using role-based access control.
• Setting up secure communication channels to prevent unauthorized access.
• Encrypting sensitive data, whether at rest or in transit, creates a robust security barrier that renders information unreadable if intercepted, effectively protecting against potential unauthorized access by malicious actors.

Working with a reliable company like Neontri provides peace of mind. As a service provider, we have robust legal agreements, security protocols, and technological measures to safeguard your business interests, including your data and intellectual property.

Maintaining team motivation and engagement

When a dedicated team works at a distant location, it may sometimes seem like they’re less involved or motivated than your local staff. Often, this is just a false perception—external developers care about your project’s success as much as your internal team. However, taking steps to increase their engagement is always beneficial. For instance, sharing regular project updates, celebrating milestones, and acknowledging their contributions promote a cohesive team mindset. Whether it’s launching a beta version or completing a major feature, recognize achievements and acknowledge your dedicated team’s hard work.

Handling cultural differences

Work culture can vary significantly between countries, sometimes leading to misunderstandings. To avoid potential issues, ensure that your dedicated team is aware of your policies. Provide clear information about your company’s internal culture and written guidelines for communication and company rules.

As for language barriers, you can let the vendor know from the start that you require a specific level of English proficiency for your dedicated team. As a side note, working with a vendor from Eastern European countries often avoids language and cultural issues. Poland, for example, is known for its tech experts’ high English proficiency and strong cultural compatibility with Western nations.

Best practices for collaborating with a dedicated development team

Successfully managing a remote dedicated development team requires effective strategies that bridge geographical distances and cultivate a collaborative, high-performance work environment. Below you will find best practices that will help you maximize productivity and build a strong working relationship with your dedicated development team.

Define clear goals and expectations

It’s essential to define clear goals and expectations from the outset. Start by ensuring that the dedicated team understands their roles and responsibilities. Break the project down into small, manageable phases, and clearly outline what you expect them to achieve in each phase. Setting expectations upfront prevents misunderstandings, scope creep, and misaligned priorities as the project progresses.

Conduct regular check-ins

Establishing clear processes is crucial for smooth collaboration with a dedicated team. Define meeting frequency—daily, weekly, or biweekly—and set specific agendas focusing on project planning, blocker discussions, or result presentations. With regular check-ins, you can resolve any issues as they arise, ensure everyone is on the same page, and keep the project on track.

Also, maintain open and responsive communication when working with a dedicated team. Be readily available to address their concerns and questions, especially when they encounter project roadblocks requiring your guidance. Providing timely, accessible input supports the team’s progress and directly contributes to achieving superior project outcomes.

Measure performance

To maintain a productive partnership with a dedicated development team, regularly measure performance using clear metrics and key performance indicators (KPIs). This involves tracking project phase completion schedules, evaluating technical performance through code quality, error rates, and bug counts, and measuring the team’s work output during each project phase. By systematically assessing these metrics, you can ensure continuous improvement, identify potential issues early, and maintain high-quality project delivery.

It’s important to regularly review these metrics with your team and address issues promptly. If you identify areas for improvement, provide constructive and specific feedback on tasks. 

Foster a strong team culture

Even when working from different locations, try to create an environment where all team members feel connected and valued. Encourage open dialogue, transparency, and mutual respect to help bridge cultural and geographical gaps. Organize virtual team-building activities to strengthen relationships and foster a sense of unity between your dedicated team and your company.

Leveraging the dedicated development team model with Neontri

Neontri is a dynamic software development partner specializing in outsourced IT solutions. With over 10 years of experience recruiting top tech talent, we can swiftly assemble dedicated development teams, identifying the right specialist in as little as 72 hours. Our proven approach, backed by a 98% client retention rate, ensures strategic alignment and continuous support for your business growth. We pride ourselves on delivering high-quality, tailored software development services that meet your unique technological needs.

Conclusion

The dedicated team model is often an ideal solution for businesses that need skilled, reliable developers. It offers numerous benefits, including expert knowledge, flexible team scaling, and cost efficiency. This approach is well-suited for long-term, complex projects requiring deep expertise and ongoing involvement. 

While collaborating with a dedicated team may present challenges, such as time zone differences, cultural diversity, and data security concerns, these obstacles can be effectively mitigated through strategic partnership with an experienced vendor.

At Neontri, we leverage our extensive network of pre-vetted specialists to quickly assemble dedicated software development teams tailored to your project’s unique requirements. Our ability to match precise expertise ensures we can deliver value across diverse technological landscapes. Contact us to explore how we can transform your development goals into reality.