Over time, new professions and models were born along with the development of the economy and technology. Today, let’s find out the Dedicated Team Model with Speranza, which is widely used in the software industry. This article will give you the definition and how it works, as well as its pros and cons and challenges in applying it.
What is a Dedicated Team?
A dedicated development team is a group that works specifically for a project and is separated from the parent company that manages this team. Customers hire a dedicated team to develop software according to the required timeframe. This model is often used remotely and in the form of outsourcing, now quite popular, and is a good choice for both established companies or start-ups.
Image 1 : A dedicated team is an optimal solution when developing software in the desired time frame (Source: https://web-peppers.com/blog/how-to-hire-the-best-dedicated-development-team/)
Theoretically, when you collaborate with a dedicated development team, this team is considered as your employees. Or you can assign a project manager from the supplier and then communicate with him. Your job is simply an agreement, the team will develop the required software. Therefore, depending on each business requirement, the members of the dedicated development team can change flexibility, including Front-end & Back-end engineers, Product Managers, Business Analysts, Mobile Developers, etc. Customers also have the right to choose members according to their wishes.
Two Common Formats
There are two formats for hiring a dedicated team, which are Fix Price Model and Time & Material Model
Fix Price Model
Use a form that customers pay with the initial agreement, usually monthly regardless of the project progress. Because the work may not be completed but the customer still has to pay, this mode has strict requirements and scope of work. This price model is suitable for short-term projects, with a clear plan and little change such as the water-fall model, etc.
Time & Material Model
Use a form that customers pay with the actual progress of the work. The advantage is the high concentration of expertise, which can ensure that the dedicated team will only receive projects of you, not 2 or 3 projects at the same time. This pricing model is suitable for medium or long-term projects, with a not-clear market and the requirements can change continuously. The software model commonly used for this situation is Agile.
Benefit when using Dedicated Team Model
This model has many advantages such as high specialization and cohesion of team members. Implementing and coordinating projects are quick and simple because all resources are focused. Therefore, the benefits of hiring a dedicated development team are:
Reduce the cost
Instead of setting up a new department and spending money on recruitment, insurance policies, or office equipment, your job is simply to pay with the agreement and a dedicated team takes care of it all. In addition, the difference in labor costs also brings optimal efficiency, for example, paying employees in the US costs many times more than India, China, or Vietnam but the capacity is still the same.
Teams that are experts in their field. Most are talented engineers and have a lot of experience. For example, your company is in agriculture or finance, hiring a dedicated team is the best solution when you want to develop applications. Even if you are a technology business, sometimes there will be areas that are not specialized so outsourcing by the dedicated team is also an effective solution.
Flexibility in software development.
Not only have the right to choose team members, but you can also manage the team, control the workflow, suggest changes. The productivity of these teams is very high, so the time to bring products to market is fast, meeting the needs promptly.
Image 2: Collaboration brings many benefits (Source: https://www.journeyinlife.net/2019/12/join-hands-nghia-la-gi.html)
Challenges of Dedicated Team Model
Not for small and short-term projects.
Running such a team of professionals generates significant costs. Therefore, it is difficult for non-tech companies to hire for their small-scale or pilot projects.
Take a lot of time to find a suitable team.
The project is for your company, so you have to do a serious search and put in a lot of time. And most of the dedicated teams are concentrated in the developed countries of the outsourcing industry, it is not easy to communicate with foreigners.
Every company has its own rules and culture. Sometimes your requirements and the team’s capabilities do not match, so to get the best results, it is important to maintain good communication and coordination.
Through the above article, hope you understand what is a Dedicated team and the benefits & challenges of it. With many experienced years in the Software Offshore, Speranza is proud to have a strong dedicated development team that can meet all your needs. Located in Vietnam, where the fastest technology development in the world, our experts always strive to bring optimal value and satisfaction to customers.