Pros and Cons of Dedicated Team Model for Your Product Development

Have you thought of developing a new digital product or service? Maybe you lack resources for that and have heard about a dedicated development team model, but still are not sure if it’s good for your business and what to start with.

We will try to help you figure out what a dedicated team is, the pros and cons of using it, as well as how to hire the best one to make your project succeed.

Definition of the Dedicated Team Model

When you choose the company to work on your software, you should mind there are two ways to go: hire a dedicated team of developers or opt for a fixed-price model. Let’s check a definition of each of these terms to find out the difference between them.

A dedicated team model means that you have a huge project with lots of tasks and pay for the time the developers will spend on them.

A fixed-price model stands for estimating and negotiating the cost of your product beforehand and can be used if you clearly know what you need in the end.

Now that we are done with the definitions, let’s proceed to how a dedicated team works.

How does it work?

To enable this model, you need to go through several stages:

  1. Gather important details about your project.At this point, you need to understand what you want and specify all the requirements. Depending on this, you as a client will be able to compile all requirements, including a number of team members, their skills, and so on.
  2. Find a dedicated team which meets your requirements and discuss scope, workflow, timeframe, and model of your future collaboration with them.
  3. Get a team of developers and a project manager, if needed. He or she will coordinate the teamwork and report to you every week or two weeks, as well as arrange meetings (offline or online).

Of course, you can manage them on your own, but an assigned expert will ensure you’ll get the best services ever without any headache. Below, you can find an example when a dedicated team model can be useful for you: 

dedicated team model

Pros and Cons of Dedicated Team Model

It’s high time to have a look at the benefits of dedicated team model and clarify when it’s better not to use it.


Here are the main advantages such a team of developers can bring for your business:

  • Transparent development process and communication. Even if you are in different time zones, you can easily find the time suitable for a Skype call.
  • No need to hire an internal team of developers. It helps to cut down expenses on the lengthy talent acquisition process, as well as reduces risks if one of the leading experts makes a decision to leave. In case with a dedicated team, the vendor undertakes all the possible risks and solves them in no time.
  • High flexibility. You can change tasks priority and scope of work at any time, likewise add new ones. On top of that, you can also pause a project if you need to allocate money for some other activities and renew it whenever you need.
  • Full control over the process. In addition to the possibility to choose and hire team members on your own, you can monitor the workflow get timely reporting on the team’s performance. You can also supervise the team on your own, but having a skilled project manager will simplify your life significantly.Get a team of developers and a project manager, if needed. He or she will coordinate the team work and report to you every week or two weeks, as well as arrange meetings (offline or online).
  • Cost-efficiency. Precise workload estimation allows to understand and distribute your monthly budget.

benefits of dedicated team model


Still, as in any situation where human factor and money is involved, you’ll have to analyze possible pitfalls you can encounter during your cooperation with a dedicated team.

For instance, we do not recommend you a dedicated team if you recognize yourself in one of the following statements (or in all of them):

  • You have a very tiny budget for your project or cannot allow extra expenses in case of force majeure.
  • Your project is small and you won’t need to make any changes to the scope of work.
  • You don’t trust to the outsourcing company or services provider you’ve found.

Thus, before choosing a dedicated team over the fixed price model, we recommend you to take into account and thoroughly consider all the advantages and disadvantages it can have for your project.

Pricing Model: How Much does it Cost

After we’ve clarified all the technical moments, it’s time to discover the cost of the dedicated team of developers. We’ve created this table for you to see the possible team members and their average hourly rates in different countries. This will help you understand whom you may need and distribute your budget accordingly.

Job title

United States Latin America Eastern Europe
Business analyst $110-$205 $45-$55 $40-$63
Architect $198-$292 $60-$72 $50-$77
Project manager $133-$233 $55-$66 $45-$70
Junior developer $105-$111 $35-$44 $25-$42
Middle developer $132-$140 $30-$52 $35-$56
Senior developer $176-$187 $45-$55 $45-$70
Lead developer $176-$187 $50-$61 $45-$70
Junior QA $77-$81 $30-$39 $25-$42
Middle QA $99-$105 $35-$44 $30-$49
Senior QA $143-$169 $40-$50 $40-$63
Graphic designer $79-$163 $40-$50


Average outsourcing rates in 2018

As you can see, prices for dedicated development team model vary across the regions. When choosing a company to trust your project to, mind that cheaper rates don’t necessarily mean poor quality. Still, our piece of advice will be to get to know more about the team before hiring them to work on your solutions.

How to Hire a Team of Your Dream

To help you choose the best dedicated team for your project, we have made a small checklist:

  1. Define your goals and strategy. What do you want to get as a result of your cooperation? How do you see your future product? What is crucial for you and what features can you sacrifice to reduce costs? The more clear vision you have before looking for a team, the simpler will be the negotiation process.
  2. Estimate the resources you have and will need. This point comes straight from the previous one. Define how much time and money you can spend on this project, and what you lack for making it perfect.
  3. Do research of the outsourcing companies who offer dedicated teams. Compare their hourly rates, communication models, additional services they offer—anything that can be important for you. Pay attention to the customers’ reviews and other projects this company has completed before. No need to say the more satisfied clients they have, the more you can trust them.
  4. Sign up a contract and enjoy the work of real professionals. By the way, while they are working on your project, you can focus on your business goals and product promotion.

We hope this article has helped you to define whether you need a dedicated development team model for your business. If you are positive about using this type of cooperation with an outsourcing company, we’ll gladly discuss the details of your project. Be sure to reach out to us and request a free quote right now.

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