7 Signs You Should Use a Dedicated Development Team Instead of Hiring In-House
We will talk about why and when to hire a dedicated development team instead of hiring in-house.
Table of Contents
Intro
Companies are often burdened with tight deadlines, extraordinary costs, and a lack of skilled developers. The eternal question for many business executives sounds like this: should we hire new staff or bring in an outsourced team? In this case, the model of a dedicated development team can be the answer. It means hiring a group of external developers who work only on your project as if they were a part of your company. They just become a part of your team and thus focus 100% on your goals. This model involves “a group of external software professionals” working exclusively on your product. In other words, a dedicated team is like having full-time experts on your side without the overhead of formal hiring.
First, a dedicated team makes sense when your internal team is stretched too thin. This is supported by the fact that projects fail because of a lack of resources about 37 percent of the time. If your developers are working late and still can't meet deadlines, then it is time to add a dedicated development team. It would split the workload with them so that the speed of delivery increases while giving your core staff an opportunity to focus on more strategic tasks. Companies with outsourcing featuring dedicated teams have, in fact, cut their time to market up to 20%. We explain seven specific signs that point to choosing a dedicated team model over ramping up an in-house team.
What is a Dedicated Development Team?
A dedicated development team is an outsourcing model where you hire a specific group of software experts for your project alone. They are not being torn between multiple clients but act like your in-house team, while in fact, they are outsourced professionals. The team may involve developers, designers, QA testers, and any other role you might need. Unlike recruiting and onboarding new employees, a dedicated team can be gathered much faster and can easily scale up or down as your project develops.
The dedicated team model ensures continuity and focus. The team becomes acquainted with your product, goals, and users. Very often, it is a long-term cooperation for some months or even years, so they really understand your vision. Because they work exclusively for you, they can pay full attention to your software and make consistent progress. In other words, this model treats your project as the sole priority, bringing your own ideas and requirements into every line of code.
Dedicated Team Model vs. In-House Development
How does a dedicated team differ from an in-house team? In-house development team means you recruit, hire, and manage employees on payroll. That can be very slow and expensive. Recruitment takes time, the salaries and benefits accumulate, and training will delay your project. On the other hand, the dedicated development team is prebuilt and ready for work. The developers have been previously selected for your needs, and they start coding much faster.
For instance, one comparison shows that an in-house team is “Slow (recruit & onboard)” while a dedicated team can be assembled fast (pre-assembled). A dedicated team also offers far more flexibility. You can easily scale up or down the number of developers as needed. If your project suddenly needs more coders or designers, a dedicated team can add those roles immediately without the long hiring delays. In contrast, an in-house team would take weeks or even months to recruit and train each new person.
All in all, the dedicated team model gives you a high level of control over talent and costs with no full overhead of an internal team. The team might work remotely, either offshore or nearshore, and still be integrated with your processes. Your company still sets the goals and priorities, but execution is handled by the dedicated team. This is the reason why many companies consider dedicated teams as an effective balance between using their own staff and using external contractors.
7 Signs You Should Use a Dedicated Development Team
- Your In-House Team Is Overloaded. If your current developers are regularly working overtime and still struggling to hit deadlines, it's a big red flag. Lack of enough hands-on deck is the reason 37% of projects fail. A burdened team cannot create or keep the pace. At this time, adding a dedicated development team can take on the extra workload. These outside experts can meet project milestones and free your in-house team to focus on planning and strategy. Bringing in a dedicated team has helped some companies accelerate delivery and avoid burnout in their core staff.
- You Require Specialized Expertise. Perhaps your project requires a certain skill set that your team simply doesn't have. It could be a certain programming language, a new framework, or advanced fields such as AI or blockchain. Locally, finding and hiring these experts full-time might be prohibitively expensive or impossible. This is a perfect case for outsourcing. Indeed, one industry survey found that 56% of companies outsource software development to gain access to specialized skills not available internally. A dedicated software team lets you tap into such expertise immediately. If you need to add machine learning features or complex security compliance, then a dedicated team can include those specialists from day one. And you don't need to spend any time or resources training your staff; you will have the right skills exactly when you need them.
- You Have Rapid Scaling Needs. Growth is a good problem, but it can strain internal teams. If your business must scale its product or launch new features quickly, hiring in-house may not keep pace. The dedicated team model solves this by making scaling easy. You simply add more developers from the partner company. This team can scale up or down with your project’s needs. For example, if an investment suddenly lets you expand your software’s scope, a dedicated team can double or triple in size in days, not months. This flexibility is often called a scalable development team. It means matching resources to demand so that you only pay for what you need. In practice, many businesses have used dedicated teams to handle spikes in work; 64% of companies rely on outsourcing precisely to meet fluctuating demands.
- You are facing a tech talent shortage. For now, most regions face a lack of tech workers. If you can't find qualified developers in your locality, the concept of a dedicated team in another location opens your possibilities to finding them anywhere in the world. In fact, about 76% of companies report being unable to fill critical tech roles. By hiring remote developers through a dedicated team, you instantly overcome this gap. The partner firm already has vetted experts ready to go. This approach also avoids long recruiting processes.
- The Cost of In-House Is Too High. Maintaining a full-time development staff is expensive. Office space, benefits, equipment, training, and idle time all drive up costs. Outsourcing with a dedicated team can significantly lower expenses. McKinsey research indicates that companies can cut development costs by 20-30% by outsourcing rather than doing all the work in-house. Other analyses suggest savings of as much as 50-70% with offshore or remote teams. Savings come in the form of much lower overseas hourly rates and zero long-term hiring expenses. If your budget is tight or you need to demonstrate rapid return on investment, a dedicated team gives you more bang for your buck. You still get quality work, but at a much lower overall cost compared with trying to staff up at home.
- Your Project Is Long-Term or an MVP. Dedicated teams are at their best for ongoing projects or those that will evolve with time. If you are building an MVP or plan several updates in the future, a dedicated team will give consistency. For example, many startups do this to launch MVPs faster without having to pay the price of permanent employees. Once the team learns about your project, they'll take all the institutional knowledge with them through each new phase. That equates to faster iterations and fewer misunderstandings. It also cuts out the wasted time from "re-learning" about the project every time you hire someone. In short, on any project that requires long-term support, continuous development, or several rounds of testing and feedback, it is more efficient to have a model of a dedicated team rather than constantly rehiring.
- You Require Innovation or Must Tackle Complexity. Finally, if your project is highly complex or you require innovation, outside experts help out with a great deal. In-house teams busy performing routine tasks often lose sight of innovation. Outsourcing can offer new insights and updated skills. In fact, Deloitte found that 54% of companies outsource specifically to acquire innovative solutions and new approaches. A dedicated team can introduce leading-edge practices and technologies that your current team may not know of. At the same time, some projects are just very complex, for example, multi-platform systems or enterprise software. These can overwhelm a small team. An experienced dedicated team likely has overcome similar complexity before. By sharing the load with experts, you ensure that complex requirements are covered without draining your internal resources.
Key Benefits of the Dedicated Team Model
In summary, there are many merits when using a dedicated development team.
- Cost Efficiency: You pay only for the team you use, without extra office or overhead costs. As noted, outsourcing can reduce development expenses up to 30% or more.
- Scalable: Add developers to the project when needed and remove unneeded developers. As a project grows, so does the team. When the work starts to dwindle, it's simple to scale back. This flexibility is much more difficult with an in-house team.
- Access to Global Talent: You can hire experts from any part of the world. This will give you access to world-class developers, designers, or testers who might not exist in your locality. With a global team, if time zones differ, you can almost have 24/7 progress.
- Full project focus: A dedicated team works only on your project and thus knows it inside out. Full attention often yields higher quality and faster progress compared to splitting the team's time among many projects.
- Faster Startup: This is because project kick-offs are quicker since the teams are already set up. In other words, the hiring time is "fast - preassembled" as opposed to the "slow - recruit & onboard" way of in-house hiring.
- Continuous Support: It is usually easier to provide support and updates for maintenance, as teams usually stay together throughout a long period. Knowledge is not lost between phases of a project.
All these are proven outsourcing benefits. Dedicated remote experts are known for their speed and flexibility; they can integrate with your existing workflows and deliver results fast. Over time, they turn out like an in-house team without the heavy HR burden.
How to Choose the Right Partner
Not all outsourcing firms are created equal, and the selection of a reliable provider is of paramount importance. Following are some tips:
- Experience and Portfolio: See whether the team has experience with projects similar to yours, or at least has worked in your industry. Relevant case studies will prove that they understand your challenges.
- Evaluate Communication: Your partner should clearly outline and have processes for regular updates. Ensure they use the necessary tools in their updates-like shared boards or regular meetings-that work well with your workflow. Good communication means fewer misunderstandings and easier collaboration.
- Flexibility and Scalability: Sometimes changes in needs crop up, and they need to adjust their team size or skill set. A good partner will let you scale up or down without bother.
- Protect Your IP: Have them sign proper agreements. See that NDAs and security practices are in place. Your code and data must be yours.
- References from Clients: Ask to speak with past clients directly or read testimonials. Happy customers mean a reliable team.
- Culture and Alignment: The partner's team should be operating within a compatible time zone, matching your company's style of work. This makes daily collaboration so much easier.
The preparation of questions and a small amount of research will prevent headaches later. Do not rush this step, as a good partner can make or break your project.
Ready to Build with ORIGIN8 IT
If these signs sound all too familiar, ORIGIN8 IT can definitely help. ORIGIN8's solutions include Dedicated Development Teams, Offshore Development Teams, and Flexible Staff Augmentation. You can hire vetted software engineers, remote developers, and full product teams in Europe. This means we handle the recruiting and onboarding while you receive the much-needed talent right away.
Our clients see real-world outcomes: with our model, companies save up to 60% on costs and hire top developers 66% faster. One client, a UK e-commerce startup, tripled its development team in just two months to hit their launch deadlines. Whether building an MVP or scaling a mature product, we can integrate our teams into yours and push the project forward.
With Origin8IT, you also benefit from our proven processes and support. We offer MVP development services to help drive quick product launches, and our offshore development teams mean you can tap into global talent on demand. Our staff augmentation services make it easy to add precisely the skills you need to your existing team.