A dedicated project manager is a professional responsible for leading and coordinating projects so they meet goals, timelines, and budgets. They are the point of communication between teams, stakeholders, and leadership, keeping everyone on the same page. They plan, organize, solve problems, and motivate the team while tracking progress to ensure the project’s success.
What is a dedicated project team structure?
A dedicated team is a group of professionals focused only on one project until it is complete. These teams don’t handle other tasks and are common in IT, software development, and R&D.
Such teams usually include project managers, developers, QA engineers, UI/UX designers, and business analysts. They work independently, with clear goals and workflows. Companies often use this approach for long-term or evolving projects, filling resource gaps, or outsourcing through staff augmentation (outstaffing
Outstaffing, also known as "staff augmentation" or "outsourced staffing," is a legal arrangement in which a business entity (the "client company") contracts with a third-party service provider (the "outstaffing company") to temporarily transfer certain employment-related responsibilities and obligations associated with its workforce. This contractual relationship is established according to applicable labor and employment laws.
Legal aspects of outstaffing
Employment relationship. Under an outstaffing arrangement, the client company retains control over the day-to-day tasks and supervision of the individuals who work for it. However, the outstaffing company formally employs these individuals, becoming the legal employer of record.
Compliance with employment laws. The outstaffing company assumes responsibility for complying with labor laws, including but not limited to wage and hour regulations, tax withholdings, workers' compensation, and employment discrimination laws. It’s obligated to ensure that the workers are treated under applicable employment standards.
Contractual agreement. The client company and the outstaffing company enter into a legally binding contract outlining the terms and conditions of the outstaffing arrangement. While the specific content of such agreements can vary depending on the parties' needs and preferences, these are the common sections of a typical outstaffing agreement:
Introduction and definitions
Scope of services
Duration and termination
Payment and fees
Employee benefits and compensation
Confidentiality and intellectual property
Indemnification and liability
Insurance
Compliance with laws
Dispute resolution
Conflicts of interest
Force majeure
Governing law and jurisdiction
Risk mitigation. Outstaffing can help the client company mitigate certain employment-related risks, such as legal liabilities associated with wrongful termination, workplace injuries, or employee disputes. By transferring these responsibilities to the outstaffing company, the client company may reduce its exposure to such risks.
Cost control. Outstaffing can offer cost savings to the client company by eliminating the need for full-time employees and associated expenses like benefits, insurance, and payroll administration. Instead, the client company pays a fee to the outstaffing provider for its services.
Confidentiality and intellectual property. The contractual agreement between the parties often includes provisions to safeguard the confidentiality of the client company's proprietary information and address issues related to intellectual property created by the workers.
Outstaffing advantages and benefits
Money saving. Outstaffing allows you to access skilled professionals without the overhead costs of hiring full-time employees. You pay for the specific services you need, reducing expenses like benefits, office space, and equipment.
Access to global talent and technology. Outstaffing providers often have access to a global pool of talent, enabling you to tap into specialized skills and expertise that may not be available in your local job market. You can also take advantage of the outstaffing provider's technology infrastructure, software, and tools, avoiding substantial upfront investments in technology and software licenses.
Reduced administrative burden. The outstaffing company assumes HR and administrative responsibilities, including payroll, tax compliance, and regulatory adherence, freeing you from these tasks.
Scalable workforce. Add or remove workers as needed to match project scope, allowing for efficient resource allocation and improved project management.
Cost predictability. Budget more accurately with predictable outsourcing costs, as opposed to the unpredictable costs associated with hiring and retaining full-time employees.
Competitive advantage. Stay competitive in your industry by leveraging outstaffing to quickly adapt to market changes, innovate, and maintain a lean, efficient workforce.
The difference between outstaffing and outsourcing
IT outstaffing and IT outsourcing are distinct approaches to managing IT functions.
IT outstaffing involves hiring external IT professionals who work as an extension of the client company's in-house team, with the client maintaining direct control over project management and tasks.
In contrast, IT outsourcing entails contracting a third-party company to handle specific IT functions or projects independently, with the outsourcing provider taking full responsibility for project execution and management.
IT outstaffing offers greater control and integration of external resources into the client's workflow, while IT outsourcing provides a turnkey solution with less client involvement in day-to-day operations and decision-making.
Whenever you have questions about outstaffing or want to try this strategy for your project development – give MWDN a call and estimate the cost of your dedicated remote teammate.
development). Dedicated teams are ideal for complex projects, dynamic requirements, or when in-house expertise is limited.
Trends, statistics, and facts about PMs
The role of project managers is growing – by 2030, there will be a global demand for 25 million new project managers as IT, construction, healthcare, and finance expand their operations. As IT projects become more complex with the integration of AI and cloud technologies, project managers are more required to coordinate technical teams and business stakeholders.
Poor project management has a massive impact on business. Nearly 70% of projects fail to meet their goals due to mismanagement, missed deadlines, or unclear objectives. Imagine a large construction project where material deliveries are delayed, and the workforce is left idle. Without a skilled project manager to track logistics, negotiate with suppliers, and reassign tasks, such inefficiencies can escalate, leading to significant financial losses.
The economic benefits of good project management are equally impressive. Companies with effective project management see an increase in efficiency of up to 40%, translating to cost savings and better returns on investments.
Trends in the field also show how the role is evolving. Agile and hybrid methodologies, which combine flexibility with structured planning, are the new standard. Jira and Asana are no longer conveniences—they are central to how modern teams work together. Today, a project manager might use AI tools to predict delays in software development and adjust schedules in real time to minimize impact.
Day-to-day tasks of a Project Manager
A skilled project manager is a link between everyone in the team. They do the planning, management, and communication to deliver results. Here’s in a bit more detail.
Planning projects
A project manager begins by setting goals, timelines, and budgets. They break down the project into smaller tasks, create a roadmap, and assign deadlines. In a software development project, for example, a project manager will define milestones such as “prototype launch” or “user testing completion.”
Good planning includes identifying key dependencies, for instance, ensuring development teams receive client feedback before moving forward. Without a solid plan, teams risk missing deadlines or running out of budget.
Resource allocation
A PM makes sure that every team member has what they need, whether it’s manpower, tools, or funding. They ensure the right people are assigned to the right roles while balancing workloads to avoid burnout. For instance, in a marketing project, they might allocate graphic designers to visual tasks while reserving data analysts for campaign performance tracking. They also secure tools, like CRM software, essential for productivity.
Monitoring progress
Tracking progress involves checking milestones, identifying delays, and adjusting as needed. A project manager uses tools like Gantt charts, Trello boards, or Jira to visualize the project’s status. Regular check-ins with teams ensure no task goes unnoticed and progress remains aligned with the timeline.
Risk management
Risk management is about spotting potential problems before they occur and preparing solutions. A project manager assesses risks at every stage, from technical errors to budget overruns.
Team leadership
Leadership goes beyond assigning tasks. A project manager inspires and supports team members, and creates an environment where people feel motivated and heard. When conflicts arise—such as disagreements between developers and designers—the project manager facilitates open communication.
Stakeholder communication
A critical part of the project manager’s role is ensuring stakeholders—whether clients, executives, or partners—are informed and aligned. They provide regular updates, deliver reports, and explain any changes to the original plan. If a project scope expands due to new client requirements, the project manager communicates how this affects the timeline and budget. Strong communication builds trust and ensures everyone remains committed to the project’s success.
Requirements for a Project Manager
What would a company require from a person applying for a project manager role? Here are some common requirements and demands.
Education
Most project managers hold at least a bachelor’s degree in business administration, engineering, IT, or management. IT project managers typically study computer science or software engineering.
Advanced roles may require a master’s degree in business administration (MBA) or project management. While formal education provides the foundation, project management is also about applying knowledge in real-world situations.
Certifications
Certifications add credibility and demonstrate knowledge of project management methodologies. The most recognized ones include:
Project Management Professional (PMP): This globally recognized certification by the PMI (Project Management Institute) validates expertise in managing projects of all sizes and complexities.
Certified ScrumMaster (CSM): Ideal for those working in Agile frameworks.
PRINCE2 (Projects IN Controlled Environments): Popular in Europe, it focuses on process-based project management approaches.
Agile Certified Practitioner (PMI-ACP): For those managing Agile projects, this certification emphasizes adaptability.
These certifications often require passing exams, showcasing project management experience, and maintaining knowledge through continuing education.
Experience and background
A strong project management career usually builds on years of experience in related roles.
Entry-level experience. Roles such as project coordinator or junior manager offer hands-on involvement in managing tasks, tracking progress, and learning stakeholder management.
Relevant industry knowledge. For example, an IT project manager might come from a software development background, while a marketing project manager might have years of campaign management experience.
Technical skills
There isn’t much. Here are some of the key and most common technical skills a PM would need:
Project management software: Microsoft Project, Jira, Asana, or Trello.
Budgeting and financial management: Allocate resources and control costs to keep projects within budget.
Data analysis: KPIs and dashboards to track performance and measure success.
Risk management: Identify risks, assess their impact, and plan mitigations to keep projects on schedule.
Apart from that, a PM should be familiar with the product and understand key algorithms of how their team’s tools and instruments work.
Soft skills
Soft skills are critical for managing people. A project manager needs to have leadership skills, know how to communicate with people of all backgrounds, be aware of time management, solve problems, and be adaptable.
Why are PMs important for businesses?
Project managers bring order and accountability to complex processes. They ensure teams meet deadlines, stay within budget, and deliver high-quality outcomes.
How do you know if your company needs a project manager?
Frequent delays – Your projects regularly miss deadlines.
Budget overruns – Your costs exceed expectations.
Lack of coordination – Teams struggle to collaborate or communicate.
Inconsistent results – Deliverables vary in quality or fail to meet expectations.
If your business faces any of these challenges, hiring a project manager can bring structure and efficiency to your operations.
The average salary of a Project Manager in different countries (as of 2024)
USA: $90,000–$120,000 per year.
Israel: $65,000–$85,000 per year.
Ukraine: $20,000–$35,000 per year.
Poland: $30,000–$45,000 per year.
Germany: $80,000–$100,000 per year.
India: $15,000–$30,000 per year.
Of course, much depends on the business niche and particular location of the company within the chosen country. Outsourcing to Ukraine, Poland, and other Eastern European countries is considered one of the best options due to the great cost-efficiency of this region in terms of software development and related IT services.
