Dedicated Teams Model: Pros and Cons
In 2020, companies from all industries felt the enormous impact of the COVID-19 pandemic. For business owners and for the entire IT industry, 2021 will bring a distinct way to increase business value through innovative technologies and data approaches. Based on information from Gartner, to cope with the growing demand for innovations while maintaining tight budgets, 71% of CIOs seek to preserve the share of IT resources provided to third parties.
While most companies have already adopted remote work, now they can expand their teams with talent worldwide. The best way to do this is to build a dedicated software development team in a trusted company. For over a decade, we have built 150+ development teams for a diverse range of clients — from start-ups to Fortune 500 companies. We hope our hands-on experience will help you to decide if Dedicated Team Model suits your needs.
What is the Dedicated Team definition?
Let’s start from the very beginning — what does a dedicated team mean? It’s a widely used outsourcing engagement model allowing companies to extend their in-house teams with one or more remote IT professionals, fully allocated and functioning as a virtual cross-border integrated team with that company. Typically, it includes developers and QA engineers, marketing managers, designers and others.
In a nutshell, using the Dedicated Team Model is like having your own team but located in a different country. However, you have a significant advantage, since you don’t have to worry about various administrative issues. From the hiring process to setting up the infrastructure, signing legal documents and even paying taxes for your remote team, your Dedicated Team Provider will take care of all this. All you have to do is define a scale and strategy, focusing on your day-to-day tasks and the management of your staff.
Why does your business need a Dedicated Development Team?
When considering an outsourcing model to choose from, it is essential to assess your project’s needs. Here’s a quick list to consider when you need to hire a Dedicated Development Team:
- The cost
This is an economical option. Choosing a Dedicated Team for your future software development projects is not only faster but also much cheaper. As you know, finding the missing experts, interviewing them and individually incorporating them into your business plan is not an easy task.
- No talent to match
One of the reasons many companies choose a Dedicated Team Model is the lack of local resources. As a result, companies face difficulties quickly scaling up their business. But such an option makes it possible to create a globally distributed team without having to think through legal and administrative issues related to employment in other countries.
- Flexibility in project requirements
If you still don’t have a clear development plan, you’ll have to constantly make changes to your project. Agility is one of the main benefits of Dedicated Teams in comparison to the Fixed-price model that usually applies Waterfall as a standard operation model. Your Dedicated team is more open to iterations in the project scope.
- The project demands high-level expertise and tech skills
If your company does not have specialists with the necessary expertise to implement the project and they don’t plan to develop this competence in house, it’s wise to hire all the experts as a Dedicated Team.
- Long-term projects
If your project is going to grow in the long term, which requires constant attention, a Dedicated Team is exactly what you need. You’ll be able to reserve your internal team for more direct work on other projects, while your remote development team handles the long-term projects.
Still not sure if it’s worth a try? Watch video testimonials from companies that have successfully built cross-border organizations and what Dedicated Teams mean for them. Unlike other outsourcing models, due to its simplicity, the Dedicated Team Model works with companies of all sizes and industries.
How Dedicated Team Model Works
- It all starts with the client and their requirements. It’s very important to determine the necessary technical skills required for the project, and, of specific roles and profiles needed.
- The Dedicated Team Supplier starts the recruitment locally, selects and pre-screens candidates presenting a shortlist to the client.
- The client does final interviews to validate technical skills and make sure that the candidates will fit the team.
- Next, the client onboards selected candidates together with the Service Provider’s HR team.
- Hooray! The team and the client start to work together and the team essentially becomes similar to any other customer’s team. They work the same hours, can work on the same tasks, participate in daily meetings, etc.
In other words, the client is responsible for all work processes and has full control over the project. Also, he/she, in turn, can monitor and manage the team and their workflow.
Benefits of a Dedicated Team Model
Typically, the cost of hiring a nearshore tech team is lower than that of maintaining local specialists.
Moreover, it can save significant time and money spent on recruiting. A Dedicated Team supplier is in charge of the process and will be able to find you a professional team much faster than you could on your own.
- Best talent pool
Each software development company has its particular strengths and weaknesses. Many offer a great product or service but struggle to pick the right qualified specialists among in-house teams up to the client’s needs. However, a Dedicated Team Supplier is specialised in finding the best of the best people from the global market according to the client’s requirements and is not pushing semi-matching internal people in the project.
- 100% team engagement
By choosing a full-time team, you can be confident that the experts you hired will work exclusively for your tasks. On contrary to other Outsourcing models where IT specialists switch between assignments of different clients, your dedicated teammates are focused on your tasks only and are as engaged and motivated as your own employees.
- Control and transparency
Many companies don’t like outsourcing models as they are not transparent. With a Dedicated Team approach, you are always in control of your remote team, can see what each developer is doing, set priorities and assign tasks to them.
What are the Disadvantages of a Dedicated Team?
Before deciding to outsource a Dedicated Team, investigate what are the disadvantages of this model.
- In-depth team integration
The Dedicated Team is highly integrated into the client’s organization, so it’s crucial to ensure that the software development service provider will take care of all security or business continuity risks. In some cases, companies could choose to keep all knowledge in-house. In these cases, it’s better for them to choose Build-Operate-Transfer Model and acquire the nearshore team as their own affiliate company.
- Recruitment process takes time
In the Dedicated Team Model, the recruitment is usually done from scratch, meaning that it will take some time for profile definition, recruitment, interviews and onboarding. It’s not the best option if you need additional resources instantly. For example, it can take 4–6 weeks to hire an IT Project Manager in Ukraine.
- Not compatible with small and short-term projects
The Dedicated Team Model isn’t suitable for small projects with a short duration. Moreover, the majority of IT Outsourcing Suppliers do not provide teams for less than 6 months duration. In this case, you can choose a Project-based approach.
Where to Find and Hire a Dedicated Team
Now that we’ve explored the advantages and disadvantages of the Dedicated Team Model, it’s time to answer the burning question: Where to hire a dedicated team?
Best Countries to Hire Remote Developers
According to SkillValue 2019 data, based on over 500 technical assessments, the five countries with the best developers are:
Let’s look at Ukraine as an example of a global top-5 leader compared to its neighbouring Poland.
Ukrainian programmers are continually improving their skills, which allowed them to climb to 5th place. Currently, there are more than 183 000 IT specialists registered in Ukraine according to the Ministry of Justice of Ukraine.
The total number of IT specialists in Poland is more than 250 000 experts. In Poland, 1.4 persons per 100 are software developers that creates a great background for the further development of the IT industry.
Accordingly to Clutch as for 23.02.2021, in the category Top Staff Augmentation Services in Poland, there are 124 companies compared to 185 in Ukraine.
Now let’s compare the hourly rates for IT profiles in these countries. The price depends on the seniority and experience of the developers.
How to choose the right supplier
- Do detailed research
First, check the B2B ranking platforms. This includes the well-known Clutch.co, which allows you to look at many companies, their profiles, customer reviews through filters, and different industries.
In addition to Clutch, you can also find specialized providers at The Manifest, GoodFirms, SoftwareWorld, and many more.
- Ask industry experts
Word of mouth is still the most common way to find a new supplier in IT outsourcing, despite increasing globalization.
If your potential provider posts reviews on their site or any other channel, reach out to the people mentioned in those reviews. Even if their names are hidden, there may be a company name or some other identifier.
- Verify their experience
When choosing a dedicated team provider, pay attention to the following criteria:
- How many stable cross-border teams have they already created?
- What is the level of employee retention in these cross-border teams?
- What is the general period of work with clients?
- How quickly can they hire the people you want?
- What HR processes do they have to ensure that your future team is highly motivated?
- What kind of customer service do they offer, and what is their approach to business?
- How do they keep your data safe and deliver smoothly?
- Check their price and adherence to budget
Never compromise on quality and overall reliability for a lower-cost solution. This should be the first rule of outsourcing, and you can rest assured that it will lead to better results in the future. Deciding which supplier to go with, based on your requirements’ nature and scope, is more important than you think.
pwrteams has a 100% transparent business model that allows clients to control their budget, see how the value is being formulated, and influence it. You’ll know everything about your Dedicated Team members’ salaries, administrative costs, and even how much we make from your project.
pwrteams Monthly Fees are based upon the gross salary of the candidate, not the job title. This allows our customers during the recruitment process to decide upon real value for money per candidate.
How to manage your Dedicated Team
It is essential to place the right mechanisms to prevent communication disruption and ineffective collaboration as your software development experts work remotely. Best practices for managing your staff include the following:
- Create harmony with every specialist
Friendship and understanding will make your team more open and enjoyable. If you don’t know anything about your employees or there is no trust between you, you cannot help them.
- Promote clear, consistent communication.
Excellent communication with your partners keeps everyone focused on the goals and intentions of the relationship at hand. It’s the first step toward a successful relationship, business or personal.
- Organize scheduled standups
Hold meetings with your team to keep everyone updated. It is crucial not only to plan for future challenges but also to ensure that everyone on the team is working towards achieving their goals. It is a great starting point for solving technical issues.
- Leverage tools
Want to achieve effective collaboration? Make sure you and your team and your Project Manager have access to the right tools for tracking work progress.
- Distribution of duties inside the dedicated project team
Set a clear dedicated team structure and appoint a project management team to ensure smooth collaboration. Establish clear work responsibilities, define who is responsible for what tasks, how files are shared, and who is the team’s central figure.
- Prepare Standard Operating Procedures
When you’ve worked with somebody for a while, ask them to prepare standard operating procedures for their tasks. When that person moves on, as they inevitably will, it’s no fun scrambling to prepare standard operating procedures for your new contractor or hire.
- Provide constant feedback
Throughout the SDLC, developers will have questions on aligning the development process with their expectations for the end product. Make sure you provide quick feedback, so you don’t slow down.
Legal Aspects Of Hiring Dedicated Team
Traditionally, outsourcing service providers generally handle most of the legal aspects of hiring remote developers. Here are some of the legal issues you will have to consult your provider about.
- Non-Disclosure Agreement (NDA)
Given that you are sharing your company’s sensitive data with the nearshore experts, it is a good practice to have an NDA in place. Indicate what sort of information is considered confidential and should not be shared.
- Statement of Work (SOW)
A work statement specifies the terms and conditions of the project, including the scope of work, deliverables, schedule, duration, and special requirements for the future project, amongst other things.
- Master Services Agreement (MSA)
This key document outlines the extent of your cooperation with the outsourcing provider. It covers terms of payment, dispute resolution, and intellectual property rights, explicitly awarding you the copyright to all the work done by the Dedicated Teams.
How to Build a Dedicated Team in pwrteams
Looking to get started with an experienced team? pwrteams can help you out with the entire process of recruitment, onboarding, and collaboration. We have a decade of experience in software development and a large pool of highly qualified IT professionals. When you contact pwrteams, this is what you can expect:
- Establishing your requirements
During the initial consultation, our representatives will collect details about your project requirements, including job descriptions, team size, and your desired workflow. We’ll use this information to narrow down the search for candidates. Since we’re responsible for hiring success, we involve our best experts to choose the right option for the profile. pwrteams’ staff turnover rate is below 10%, and we pay attention to team stability, so we can carefully select each specialist.
- Conducting job market research
We conduct market research before starting the recruitment and suggest the best countries/cities for recruiting. In the unlikely event that we can’t find the right profile, we won’t waste your time. Instead, we’ll discuss the possibility of changing the requirements.
- Putting together the team
Our hiring specialists will take up the task of assessing the candidates’ experience, English proficiency, and technical and soft skills. If there are multiple developers that match your criteria, we’ll shortlist and arrange interviews for you so that you can immediately hire them to your nearshore team. However, if you’re not satisfied with the available crop, we will also reach out to other candidates until you find the right match.
- Integrating the team
Once they get to work, they report directly to you, just like your internal teams. Our Account Managers are ready to help integrate such a team into your company and solve administrative problems. As the client, you can choose the management approach and tools you need. We also support team-building exercises, performance reviews, training, and motivation for your dedicated specialists. We highly recommend personal visits to build a good relationship with remote developers.
You can go through pwrtems reviews and case studies to find out more about our previous partnerships.