Every business startups desire to cut costs while still producing high-level results. For this reason, they outsource a dedicated team model.
In fact, the software development outsourcing market will grow 7.7% between 2021 and 2027, as stated by the Grandview research. This results in the industry generating a $937 billion income in six years. Outsourcing a dedicated software development team has its fair share of pros and cons. If you’re a startup company that requires IT expertise for a long-term project, then choose this model.
However, outsourcing a dedicated team model is more than just jumping into a trend. It is cost-efficient and result-oriented. So, if you’re a startup, we will discuss the pros and cons of the dedicated team model. From there, decide if it is suitable for your company.
Defining Dedicated Team Model
In simple terms, a dedicated team model is outsourcing a virtual-based company to allow companies to expand their existing teams. By outsourcing, these companies will allocate the tasks to the dedicated team. Usually, they involve QAs, software developers, and so on.
As summarized by App Solutions, a dedicated team model is defined by the following steps:
- The client and the customer should communicate adequately to know how many employees and the skills required for the project to accomplish.
- The customer should provide a dedicated team depending on the requirements provided by the client. The team should agree to the terms and conditions, a timeline of the project, and the specific tasks to perform.
- The client focuses on managing its team and project, while the dedicated team concentrates on producing results.
The Pros and Cons
It depends if you need a dedicated team model in the first place. However, most companies, especially the IT industry, demand this approach since it’s cost-effective, allows complete control of the project, and there’s full team engagement. We will discuss each below:
Pros of a Dedicated Team Model
1. Cost-Effectiveness
More than half of American companies use a dedicated team model to cut costs. Usually, it’s cheaper to reach out to a nearshore team than hiring a long-term tech expert in your company.
Moreover, hiring a dedicated team model saves you time on recruitment. A dedicated team will be responsible for finding a professional team catered to your needs rather than doing it independently.
In addition, they will perform their job with quality to prevent loss of trust and reputation. Hence, it is an excellent chance to cut HR costs when hiring a dedicated team rather than new employees.
2. Full Team Engagement
A dedicated team specializes in their dedicated tasks since they won’t be juggling for one to another. Thus, choosing a full-time dedicated team will assure you that they will focus on their assigned tasks without distractions.
3. Allows for Monitoring and Transparency
As compared to outsourcing models, hiring a dedicated team will allow you to monitor their tasks. In this way, you can set priorities for the tasks you assign to them.
Cons of a Dedicated Team Model
As stated earlier, a dedicated team model is not ideal for all companies. Therefore, there are some cons to it. These are some of the drawbacks of dedicated teams:
1. Not Ideal to Hire for Short-term Projects
Hiring a dedicated team model is ideal for bigger projects that require flexibility and evolvement in tasks that could change frequently. If you want to hire them for a short-term project, choose another model.
2. Not a One-Size-Fits-All Approach
Before you hire a particular model, look back to why you need it in the first place. You may be choosing a dedicated team model for a long-term project. However, it’s not advisable to hire them immediately if you haven’t established the requirements and goals on your part.
3. Different Time Zones
Hiring a dedicated team model becomes a serious issue if they are from another country. However, the different time zone problems are easily resolved by incorporating agile methodology.
On the other hand, it will not be an issue if you have a team from the same country.
The Verdict: Is the Dedicated Team Model for You or Not?
Otherwise, hiring a dedicated team model for short-term purposes won’t suit you. Better yet, hire an in-house specialist for it.
It will depend on you if you want to hire a dedicated team. Make sure to compute costs and align your goals and expectations before doing it.
You may be interested in: How to Build a Dedicated AI Team in 7 Strategic Steps