When is the best time to hire a dedicated software development team?

Dedicated development teams have recently gained much popularity, as they enable businesses to enjoy all the benefits that a software outsourcing company typically offers – while working with a team that feels more like an extension of their in-house teams, as opposed to an offshore team.

However, the question of when to hire a dedicated development team is one that’s less discussed. So, in this article, we shed light on four key moments when considering a dedicated development team is highly worthwhile, for any business.

1.   When your in-house teams are on a bottleneck, and require extra support

Excessive workloads is one of the most common reasons for hiring a dedicated software development team. When existing in-house teams are already inundated but an endless number of tasks loom close, businesses are left in a tight spot, unable to scale. A dedicated development team can be a great means to streamline such bottlenecks, as team members will be fully involved in its client’s project, sans any distractions.

Even if your company’s dedicated development team is based on the other side of the world, an opposing time zone isn’t going to be a hindrance. Contrary to popular belief, opposing time zones can actually work to a business’s favour, as operations essentially continue well after your in-house teams are done for the day. In other words, your dedicated teams will work as you sleep, with new deliverables on the ready the moment you log back into work the next day.

2.   When you are looking for specialist expertise, without long hiring cycles

For projects that are intricate and complex in nature (or simply projects where business leaders expect nothing short of the best talent available) a dedicated software development team is your best bet. Software outsourcing services have removed the geographical constraints that once were part and parcel for hiring software engineering team members, as offshoring models function from practically any corner of the world now.

Likewise, a company that wishes to build an extension of its existing in-house team (or completely offshore software development all together) with the best global talent is ideally positioned to adopt a dedicated development team. Software outsourcing partners do the hard work (including administrative duties) pertaining to sourcing, vetting, interviewing, and eventually hiring team members – while keeping clients in the loop to make executive-level recruitment decisions.

Additionally, building a dedicated development team takes less time, as team members are sometimes already available on standby. All they require is a quick interview and briefing, before they can officially get started. The cost savings that come with software offshoring also continue to be an advantage that businesses can enjoy, with monthly retainers frequently priced at a fraction of the cost.

3.   When you want to keep things confidential (and compliant)

As a business leader, you may want to hire the best talent while keeping costs as a minimum. Yet you also know that your organisation has regulations to adhere to, which is something that is bound to be compromised in due course of working with an external team. For a situation such as this, a dedicated development team offers the perfect balance of cost, talent, and confidentiality.

Business leaders aren’t forced to choose between these advantages when they opt for a dedicated development team, thereby creating a trifecta that enables long-term enterprise software development. By contracting team members with NDAs and other con-compete agreements, businesses can hire remote developers and retain them for ongoing software development without facing any harsh consequences from regulatory bodies they are obligated to.

Compliance is usually now a key point of consideration for any software development strategy today, owing to how austere regulatory bodies have become depending on the industry and region a business operates in. No matter where your business stands on the spectrum of complexity, business leaders can source for and hire dedicated team members that can think from a compliance lens, when building any aspect of the software/application at hand.

This means hiring team members who have experience in designing, developing, and testing solutions based on compliance regulations that your business needs to adhere to – or simply even hiring dedicated team members that have extensive experience in your industry (even on a niche, vertical level).

4.   When you are looking to establish footing in a new market

This is a less common reason to hire a dedicated development team, but nonetheless a valid one in certain cases. For businesses looking to expand regionally with localised digital applications and services, hiring a dedicated development team that is in or within the region in question is a wise move, for a few good reasons:

• A localised dedicated development team, knowing the norms of the local culture, can build apps accordingly. The same also applies to local regulations and compliance,
• Software outsourcing companies based in the region can extend their offerings by also delivering relevant personnel for marketing, promotions and PR. This is subject to how extensive the agency’s offerings are, and whether they also cater to services that go beyond core software development, though.

If your software outsourcing partner is a one-stop-shop for all things related to your digital software or application, they can deliver end-to-end services that take care of everything from initial concept to ongoing maintenance, including marketing.

Additionally, a localised dedicated development team of this nature becomes a nearshoring operation in itself; something your organisation can benefit from, especially if it requires in-person collaboration in a market that is new and uncharted.

In conclusion…

While the decision to open budgets and hire a dedicated development team is a big one for many businesses, so is answering the question of when it would be the best time to do so. Hiring a dedicated development team needs to justify the added cost, after all.

There are four key moments when companies can seriously consider hiring a dedicated development team:

1. When existing in-house teams are constantly inundated and on a bottleneck,
2. When you wish to hire only the best talent the world can offer, without geography being a constraint,
3. When your compliance and privacy obligations are high and/or complex,
4. When you are looking to expand into new markets for the first time.

If successful, dedicated development teams can be a significant asset to any business. Being a key deliverable of software outsourcing companies whose focus is on delivering significant cost savings, companies still stand to enjoy these savings – while getting the opportunity to work with the best minds in software architecture, design, development, and testing.

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Do dedicated software development teams cost more than traditional outsourcing?

Yes, dedicated software development teams typically cost more than traditional project-based outsourcing models. This is because dedicated team members are exclusively sourced for one client, while all their time and attention is also focused on the needs of this one client alone.

In other words, team members aren’t shared among multiple clients’ projects, or disbanded after a certain deliverable is met. This makes dedicated development teams more investment-heavy, but also delivers greater flexibility and one-on-one attention, thereby making it a worthwhile trade-off for companies that can afford it.

Can staff augmentation be combined with a dedicated development team?

Absolutely. Staff augmentation (or any other software outsourcing engagement model, rather) can be combined with other models such as dedicated development teams. Top software outsourcing companies typically focus on creating a service model that best accommodates a client’s needs, instead of fixating on a specific model alone. As for staff augmentation, it is especially versatile, as it can be combined with any other outsourcing model to create a hybrid that works best for each client’s individual needs.

Focusing on adding a subject matter expert (or two) into an existing project, the short-term nature of engagement that’s characteristic of staff augmentation makes it especially appealing to businesses that are dealing with a persisting problem or a bottleneck, and require a speedy yet effective solution for it.

Can dedicated development teams be stationed at a business’s physical premises?

Dedicated development teams can be physically based within a business’s area(s) of operation, provided software outsourcing partners are able to facilitate it. A form of nearshoring, physical placements are bound to involve more costs pertaining to travel, lodging, and other per diem expenses, including immigration (if applicable).

As a result, this is best discussed with your agency partner, to know if they can accommodate the same within budgetary and any other constraints you have, for this purpose.