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 to 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.
Sviatoslav Pechurytsia,
Branch Manager of pwrteams Kyiv, Ukraine
- What is the Dedicated Team definition?
- Why does your business need a Dedicated Development Team?
- How Dedicated Team Model Works?
- Benefits of a Dedicated Team Model
- What are the Disadvantages of Dedicated Team?
- Where to Find and Hire a Dedicated Team?
- How to choose the right supplier
- How to manage your Dedicated Team
- Legal Aspects Of Hiring Dedicated Team
- How to Build a Dedicated Team in pwrteams
- Reviews
- FAQs
- Related Articles
What is the Dedicated Team definition?
Let’s start from the very beginning – what does 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:
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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.
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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.
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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.
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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.
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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
Step-by-step process:
- 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.
How to outsource a dedicated team. Roles & Responsibilities
Explore an example of Roles and Responsibilities Matrix
| Activity | Client | Supplier |
|---|---|---|
| Profile Definition & Team Composition |
Shares the requirements | Provides consultancy and advices on the best options how to build a Dedicated Team |
| Organization of Recruitment, Pre-screening & Selection process |
Monitors the progress, reviews the profiles |
Organizes the process of searching, contacting, screening candidates Provides its own experts to evaluate soft and hard skills as well as cultural match with the company Determines a candidate’s motivation for the role and attitude Presents a short list of suitable candidates |
| Choice of the final candidates |
Conducts interviews with final candidates to validate their skills and cultural fit |
Provides consultancy and advices on the best options |
| Onboarding | Organizes the onboarding to the project |
Organizes onboarding to local organization |
| Delivery Management | Client is responsible for the delivery process. |
If a client hires a Dedicated Project Manager /Product Owner on the side of the Supplier, then the responsibility can be shared |
| Onsite Business Trips | If a client visits the office of the supplier, a supplier arranges it |
If a team goes onsite, a supplier arranges it |
| Legal Support | Signs agreement with a supplier |
Takes care of employment and legal support of local team Signs agreement with a client |
| Payroll & Administration |
Not involved | Takes care of payroll, taxes, etc. according to local laws |
| Project Knowledge Sharing | Organizes knowledge sharing inside the team |
Ensures that in case of change of employees, all knowledge stays inside the project and replacement or transfer of duties goes smoothly |
| Competence Development and Training |
Sets up the goals for the competence development of the team |
Organizes competence development Provides soft and hard skills trainings inside the organization |
| People Retention and Motivation |
Sets the standards for cooperation |
Organizes HR Processes (Performance Review, Team Building, etc) Is responsible for people’s retention and motivation |
| Benefits and Social Package |
Can offer special options for benefit package |
Administrates benefits and social packages Ensures that it allows to attract the best talents |
| Remote/Building & Facility Management |
Sets requirements for location, physical security, branding of premises, etc |
Arranges and maintains a favourable work environment |
| Technical Support | Sets requirements for IT infrastructure, workstations, software, etc |
Provides necessary equipment, software, licencing and ongoing IT support |
| Operational Support | NA | Provides operational support to ensure that everything goes ok and client is happy with the service |
| Scaling Up | Informs about the decision to scale up |
Arranges hiring of the new teammates |
| Scaling Down | Approves the notice period Informs about the decision to scale down |
Handles all questions related to scaling down of the team |
Benefits of a Dedicated Team Model
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Cost effectiveness
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.
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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 inhouse teams up to client’s needs. However, a Dedicated Team Supplier is specialised in finding the best of the best people from the global market according to client’s requirements and is not pushing semi-matching internal people in the project.
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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.
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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.
As your business develops, you can terminate cooperation without any additional payments, only taking into account the agreed notice period.
What are the Disadvantages of Dedicated Team?
Before deciding to outsource a Dedicated Team, investigate what are the disadvantages of this model.
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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 about 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.
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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.
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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 Dedicated Team Model, it’s time to answer the burning question: Where to hire 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:
Slovakia
Mexico
Poland
Hungary
Ukraine
Let’s look at Ukraine as an example of a global top-5 leader compared to its neighboring 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.
| < $ 25 | $ 25 – 49 | $ 50 – 99 | $ 100 – 149 | |
|---|---|---|---|---|
| Number of Ukrainian companies |
6 | 141 | 24 | 1 |
| Number of Polish companies |
4 | 54 | 47 | 1 |
How to choose the right supplier
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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.
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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.
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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?
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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:
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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.
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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.
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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.
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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.
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Distribution of duties inside 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.
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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.
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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.
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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.
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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.
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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:
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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.
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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.
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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.
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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.
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Team transfer opportunity
If you’d like to acquire your cross-border team as a spin-off company and get full control of your dedicated staff’s competence and knowledge, you can follow pwrteams’ Build Operate Transfer offering and even relocate your team member.
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Staff relocation
pwrteams provides staff relocation service when you decide to relocate after working for a while with your nearshore colleagues. Click here to learn more! – Staff Relocation – pwrteams.
Reviews
You can go through pwrteams reviews and case studies to find out more about our previous partnerships.
FAQs
View here
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What is a Dedicated Team meaning?
It’s a business model that refers to an agreement between the client and service provider when the latter provides software development professionals to the client on a long term basis. These specialists are chosen according to the demands of the client for their experience and skillsets. And work only on your project.
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How to determine if a Dedicated Team Model will work for the project?
This approach works best for large projects, long-term projects, and projects with multiple tasks requiring high-quality deliverables. For instance, you need to set up a team of experts for your web development projects or need to recruit devops engineers for product development activities.
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Who needs a NearshoreTeam?
- Both startups and established businesses will find it to be rewarding.
- Companies that are thinking about longer-term projects and are looking for predictability in timelines, priorities, and ROI.
- Companies that have solid IT departments and previous experience with outsourcing and remote team management.
- Companies that see this as an essential investment.
- If you’re working in a small business and you can’t afford to hire anybody else or if you’re running a business of one.
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What is the process of hiring a Dedicated Team?
Begin your journey by contacting the provider with the project scope and the human resources you need. From there, the contractor bands together professionals with specific skill sets and experiences who are suited to your requirements.
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What is the minimum and maximum scale of remote teams?
There are no limitations on your team; that can be a single dedicated professional or hundreds of people organized as a Business Unit and working solely for your company. It only depends on the provider’s capacity to staff your team at the size and the speed you need. So it’s crucial that the provider has a well-reputable Employer Brand on the market and has an attractive social package and perks.
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Am I involved in the selection process?
Yes. The process starts with you and the development company’s Recruitment manager. You discuss all your needs and goals. After that, the Recruitment manager will search for candidates who are suitable for your project. Once you have selected candidates, you or your team leaders can conduct technical interviews and check the test tasks.
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GDPR?
Before signing the contract with an outsourcing partner check how a vendor implements technical and organizational measures to comply with GDPR if needed. pwrteams is offering 100% GDPR compliant service for its clients.
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Payment model?
In most cases, customers need to pay for a month of developers’ engagement to the project. It’s also possible to prepay services at the choice of the parties.
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What is a dedicated project team structure (TL/Scrum master/PM)?
The structure can look anything you like. You set the rules, and the team structure will reflect them.
You can also choose a model with developers if you have a clear vision of your project and directly manage the team. You can also select the model with PM if you’re less involved in the workflow.
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How am I sure that my remote team is working 40 hours per week?
When communicating with the team, ask everyone to answer three questions:
- What did you do yesterday? / what has been done so far?
- What problems did you encounter?
- What are you going to do tomorrow?
Also, use special tools like Teams, Skype, Slack, Trello, Jira, etc.
Holding these meetings daily is a good option that keeps everyone in the loop, allows employees to structure what they’ve done, and schedule the next tasks.
You can also get custom reports on tasks done and time spent to better evaluate the performance of your team.
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No work/overtime?
One of the core dedicated team advantages is that you can agree with the members of your project to work overtime in the same way as you do it with your in-house team. You just need to agree on the rate for such hours and approve in advance such hours with your team.
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Can I mix it with T&M models?
Time and Materials is an approach in which clients are billed for the time dedicated experts spend developing the product based on an hourly or monthly rate agreed on in the contract.
In most cases, customers need to pay for a month of developers’ engagement to the project. In some cases you can agree that your team needs to work a fixed number of hours to deliver the result you need.
We hope this article helped you determine if you need a Dedicated Team Model. If this type of cooperation appeals to you, our company will gladly discuss your project’s details. Contact us now!
