How to Hire a Dedicated Development Team: Avoiding the Most Common Mistakes
Updated September 4, 2023
There are many ways to get a software solution for your organization: order services on a turnkey basis, buy a boxed solution, assemble it on a constructor, or hire a dedicated team. This new model, a dedicated development team, has appeared relatively recently.
Hiring a dedicated team is ideal for business people who want to control the process personally but are not interested in employing staff. Next, we will discuss the model’s features in detail and show several mistakes often made when hiring.
Content
Dedicated Software Development Team: Definition, Types, Skills
The term implies collaboration with a third-party dedicated development team outside the client’s office, mandatory on a long-term basis.
The team forms following the area of tasks the client seeks to solve.
Types of the dedicated development team by work area:
- User interface designers: UI and UX are two different profiles: one is about visual performance, other is about creating an interactive experience. A UI/UX designer can combine these skills.
- Frontend and backend developers: A full-stack specialist understands both frontend and backend.
- QA: fixing bugs in the solution. The QA tester makes a significant contribution to improving the workflow.
- DevOps: automate tasks related to setup and deployment. An engineer is familiar with both programming and infrastructure.
- Analysts: define requirements. It is an intermediate link between developers and a customer.
- Project managers: coordinating the actions of specialists to achieve goals. A manager supervises the team or several teams.
You can involve one or more performers from a particular field to work in a dedicated development team. You want different skills to create a full-fledged project from scratch and hire a dedicated team with all specialists.
The dedicated development team structure includes the following roles:
- Leading: developer, designer, tester. They work together to create a stable product meeting client expectations.
- Additional: DevOps, business analyst, project manager, product manager, scrum master. The field of activity lies aside from product development. They create optimal conditions for faster work and synchronize different performers after hiring a dedicated team.
The secret to the success of a dedicated development team is that each specialist has powerful hard and soft skills. At the same time, the first ones can vary and depend on the area of tasks.
Advanced soft skills are essential for building trusting relationships with the customer.
Dedicated development team soft skills:
- Self-confidence: The #1 skill for a participant if hiring a dedicated team in a large project. Self-confident performers form a solid and cohesive team.
- Responsibility: Awareness of personal responsibility for the quality and timeliness of tasks.
- Self-discipline: The desire to work for the result and competently organize the work process, even without the manager’s influence.
- Decision making: The ability to act quickly and coherently in complex cases, making profitable decisions.
Hire a dedicated development team for long-term projects to get the most from them. Onboarding an entire team to perform a one-time task is impractical and unprofitable.
Another thing is if you have a long-term, expensive project, the work you want to manage personally. Here the question may arise: why not use your resources and not get permanent staff for the project? It’s time to compare in-house and a dedicated team.
Dedicated Development Team vs In-house Team
You can answer the above question by calculating how long it will take to hire a dedicated development team: search, paperwork, adaptation, etc. Add financial costs: maintaining a large staff, renting additional premises, buying equipment, paying software licenses, etc.
But what if your company already has the right specialists? It is a rare case: the company often needs more skills to perform the entire range of tasks. But even if the staff is complete, employees are likely already busy with other tasks that are no less important for the business.
Let’s highlight the strengths and weaknesses of both models.
Dedicated Development Team
A diverse range of skills and expertise, cost-effectiveness, flexibility to scale up or down as needed, and reduced burden on the company’s internal resources are all benefits of the dedicated development team. Weaknesses of this approach include potential communication challenges, difficulty maintaining consistent quality and productivity, and limited understanding of the company’s needs and goals.
| Strengths | Weaknesses |
|
Relevant talents: Skills are explicitly selected for the project and are 100% consistent with the client’s requirements. |
Long-term focus. The team prefers large orders to small projects with small budgets and deadlines. |
|
Responsibility: Administrative, personnel, social, and tax issues on the contractor’s side. |
|
|
High flexibility: Work on the client’s terms and quick adaptation to new tasks. |
|
|
Access to powerful resources: The latest technology and licensed software are of the highest standard. |
|
|
Legal reliability: A complete set of documents and legal security of both parties. |
In-House Team
The strengths of an in-house software development team lie in their deep business knowledge, alignment with other departments, and ability to customize solutions to fit the company’s peculiarities. Yet, their weaknesses include limited access to diverse skill sets, risk of burnout, and higher costs.
| Strengths | Weaknesses |
|
Established connections: Personal acquaintance with the technical team and direct communication. |
Building a team from scratch: A lengthy hiring process – from finding skills to training and adaptation. |
|
Simple management: Distribution of tasks, control, and discussion of problems live. |
The need for a stable workload: A fixed salary, regardless of task availability. |
|
Team as part of the company: Employees have a deep understanding of the company’s goals. |
Regular expenses: Monthly salary, taxes, holidays, medical insurance, equipment, and rent. |
|
Legal grounds: Employment in the state on the terms of an employment contract. |
Lack of alternatives: It’s hard to quickly replace an employee who has gone on vacation or quit. |
As you can see, the dedicated development team wins regarding flexibility, financial benefits, and matching skills to actual needs. But don’t write off in-house. It is the best option for small projects for which a profound understanding of the company’s goals and tasks is essential.
How to Avoid Common Mistakes When Hiring a Dedicated Team?
Do you want to hire a dedicated development team? We will tell you how to avoid the common mistakes that may occur.
Lack of Purpose
Sounds trivial? But this is one of the most common mistakes. Many companies seek performers while needing more precise requirements and scope of tasks. The company hires 2-3 specialists when more are needed. Or conversely, it assembles a larger team than the project requires.
How to avoid: Formulate a goal and outline the range of tasks to delegate. Decide on a budget so you understand your options.
Emphasis on Low Cost
Sometimes a company chooses the performer who offers the lowest price. The consequences are disappointing. Later on, the mistakes of unsuccessful cooperation need correction by more expensive professionals.
How to avoid: A low price is a warning sign. The contractor wants to draw attention to their services, but their options are limited. They likely need a decent portfolio and feedback from satisfied customers. Choose examples of work, reviews, and recommendations on resources that you can trust.
Refrain from the Background Check
It leads to hiring inexperienced professionals who have embellished their CVs.
How to prevent: Plan the interview and testing so that you learn everything about the candidate. Bring in an independent IT expert or in-house employee who is good in the industry.
Focus on Hard Skills
Sometimes the interviewer is so keen on testing hard skills that they forget about soft skills. And it’s too bad because they help you work in a team, bear responsibility, and solve problems.
How to avoid: During the interview, set aside time to ask questions about teamwork skills, workflow organization, and approach to problem-solving.
Underestimating Deadlines
The desire to achieve a goal as quickly as possible can be too costly. Some companies misjudge the volume and complexity of tasks and plan a short- or medium-term project. But then the timeline expands, and the goal gets further away. The project requires more time.
How to avoid: Consult with a product development expert about the scope of tasks and deadlines before hiring.
Who Needs to Hire a Dedicated Development Team?
Hire a dedicated team model that works for both startups and established organizations. The dedicated development team willingly takes on projects planned to expand. Also, you cannot do without it if the product needs research and does not have precise requirements.
Here’s our list of the situations that call for a dedicated development team’s involvement:
- A startup at an early stage of development not wanting to waste time and money on finding and hiring specialists for the long term.
- An industry project requires the participation of specialists with experience in a narrow niche.
- A company is working on a large project (or several) and needs to expand the team
- A product has the potential for development and scaling; only a strong team can manage it.
- A company plans to release an innovative product that requires new knowledge and technological resources.
- An idea needs careful research, and the project has elaborated requirements.
- A product needs to be changed or improved by adding entirely new functionality.
- A large company plans to carry out digitization.
Hiring a dedicated team is an excellent opportunity for startups and small customers to create a working MVP and develop a finished creation. The medium-sized business chooses this collaboration model to change the product and expand its functionality. Large enterprises hire dedicated developers to update the tech stack, switch to a new one, and create a product from scratch with subsequent scaling and digital transformation.
Hiring a dedicated team is an excellent opportunity for startups and small customers to create a working MVP and develop a finished creation. The medium-sized business chooses this collaboration model to change the product and expand its functionality. Large enterprises attract dedicated development teams to update the tech stack, switch to a new one, and create a product from scratch with subsequent scaling and digital transformation.
However, this approach is not universal. We recommend abandoning this model if you need help with a short or medium-term project. In the first case, a fixed price model is more suitable; in the second, T&M. If your time and budget are limited, but the scope of work and requirements are clear, you can also choose freelancers.
Benefits of Working with a Dedicated Development Team for Business
- Cost-effectiveness: Finding and adding new employees to a team is always stressful for a business, including from a financial point of view. You must provide a fully equipped workplace, which entails renting an additional office and purchasing equipment and software. You must maintain your staff and pay monthly salary and social benefits. Cooperation with the dedicated team means you are relieved of the burden of responsibility for administrative, personnel, and organizational issues.
- Control functions: Businesspeople would like to control and manage their work processes, especially remotely. It could be a problem for freelancing, but with a team, everything is simple. The customer’s and contractor’s rights and responsibilities are discussed on the shore and documented. So you have every right to control the choice of specialists for your project, choose management methods, establish a workflow, evaluate performance, and track progress. You get the same level of control as you would with an in-house team.
- Budget transparency: When it comes to money, things are often rosy only at the beginning. The dedicated team model gives the customer full transparency in financial commitments. You get the estimated cost as early as the negotiating stage. Your company knows what it pays for because it can see the volume of tasks and track their progress. It simplifies the budget and strengthens the client-customer relationship.
- Continuous integration: It is necessary to constantly add new features and improve existing ones to strengthen a product’s position in the market. It is vital for highly competitive industries such as B2C e-commerce. Hiring a dedicated development team is priceless for projects that require growth over time. To move the product to a new stage of development and establish technical support, the owner does not need to form another team. The skills of specialists hired at the very beginning are enough.
- Focused approach: Ideally, a team should focus on a single project. It allows one to dive deep into the work and distribute the workload correctly. But when you work with a freelancer, you cannot be sure they are not working on another product simultaneously. With a dedicated development team, you can sign them to focus on your project only. Specialists work without distractions because they do not switch between projects and tasks. Thanks to this, they can generate and implement extraordinary ideas without haste. And after product development, the dedicated development team can take patronage in implementing new features and technical support.
Another significant benefit for the business owner is that you can choose the type of cooperation.
3 Types of Cooperation With a Dedicated Development Team
- Full-service: A dedicated development team of all subject matter experts required for the project is at your disposal. They provide a full range of services: business analysis, design, development, testing, deployment automation, management, and coordination. You have to control the workflow and give new tasks.
- On-demand: Regarding a specific area of tasks, you can involve one or more specialists or hire a dedicated development team of the appropriate profile. Let’s say you need to delegate the tasks of testing functionality. Then it makes sense to turn to QA on-demand.
- Maintenance: Is your product ready and requires maintenance? You can hire a dedicated development team that includes developers, QA, a manager, and support staff. These specialists will perform all technical support tasks and scale the finished product.
It depends on your product’s phase – whether it’s been built as an MVP or completely and requires support and growth, or you’ve just got an idea of what you’d like to develop. In the first case Maintenance type of cooperation fits; in the second case, Full-service is a better option.
Also, if you already have a team of developers but miss specific knowledge (technical or domain expertise), an On-Demand type of cooperation works for scaling your team with particularly selected specialists.
Anna VoznaClient Success Manager, Glorium Technologies
Where to Find and Hire a Dedicated Development Team?
In the digital age, you have a thousand opportunities to find the people your business needs. But are they all reliable and lead to success? We have identified two popular methods.
Where to look for a dedicated development team:
Freelance
Freelancers are, in fact, independent professionals who work on the principle of “I am my own boss.” You can find them on freelance sites like Upwork, message boards, and IT conferences.
- Pros: The best option for one-time tasks and small projects, a large selection of performers, and relatively low prices.
- Cons: The risk of encountering a fraudster and a dishonest employee, lack of contractual relations, and difficulty checking skills.
Offshore
Offshore companies also work remotely but focus on legally legitimate relationships. Search for them on Clutch, GoodFirms, and TopDevelopers platforms–they represent experienced companies and dedicated development teams.
- Pros: Detailed customer reviews, predictable costs, wide talent pool, high reputation, and lower hourly rates in certain regions.
- Cons: Language and time differences. Competent management eliminates these barriers.
Further, we will discuss hiring teams from offshore companies since this method has many nuances.
The Cost of Hiring a Dedicated Development Team
When considering hiring a dedicated development team, the cost is one of the most important factors. While outsourcing software development can be more cost-effective than hiring an in-house team, there are still a variety of costs associated with hiring a dedicated development team.
The cost of a dedicated development team can vary depending on several factors, including the team’s location, the level of experience and expertise required, and the size and complexity of the project. Outsourcing offshore teams in India, China, or Ukraine can be more cost-effective than hiring developers in North America or Western Europe.
The cost of hiring dedicated developers can also vary depending on the engagement model used. For example, hourly rates may be more expensive than a fixed-price contract but may provide more flexibility and control over the project. Similarly, hiring an outsourcing company may be more expensive than hiring individual freelancers, but it can provide additional benefits such as project management and quality assurance.
Another cost to consider when hiring a dedicated development team is the cost of communication and coordination. Additional costs may be associated with travel, communication tools, and language barriers when working with an offshore team. It is essential to factor in these costs when budgeting for the project.
However, despite these costs, hiring a dedicated development team can still benefit many businesses. By outsourcing development, businesses can avoid the costs of hiring an in-house team, such as salaries, benefits, and office space.
How to Hire Dedicated Development Team: Six Simple Steps
When hiring a dedicated development team, adopting a mindset of collaboration and partnership is essential. Rather than simply outsourcing a task, the company should view the outsourced team as an extension of its team, working towards a common goal. This mindset involves open communication, active listening, and a willingness to incorporate feedback and suggestions. With this in mind, go through the six steps below to choose your perfect development partner.
Define Goal
You must know who you are looking for and for what tasks. Is it MVP? Then consider the design. Improve functionality? How about a 24/7 product service? The specifics of the functions will determine how many performers you’ll need for the project and what hard skills they should have. Also, it is advisable to decide on the budget to understand your brackets at this stage.
Choose the Format of Cooperation
Earlier, you decided on the skills, which means it will take a little time to choose the form of collaboration. Everything is simple here. Select a full-service cooperation model and a dedicated development team if you are interested in development from scratch. In case you need to solve several tasks in one area, the on-demand model would be a great fit. Does your finished product need support? Choose the maintenance format.
Research the Market
Take your time on this step. Do thorough market research, starting with the previously mentioned aggregators. These platforms are good because they completely understand the company’s activities: scale, location with the head office, branch locations, and so on. In addition to information about the business, you should study customer reviews and look at previous projects. Trustworthy companies have a portfolio describing the work and results. List potential performers and choose the one that best suits your requirements.
Conduct an Interview
An interview is an excellent opportunity to communicate in person and evaluate the skills of the dedicated development team. For the interview to be successful, choose a reliable and convenient communication channel for both parties. You can interview several dedicated development teams from different companies, gradually reducing the list of candidates. Typically, a remote interview takes place in two stages in different channels:
- Audio call: 20-30 minutes to meet and discuss the basics. You will describe the company, business goals, requirements, required skills and desired dedicated development team. The performer or team will answer questions about work experience and education and describe their expectations. Result: you and the candidate will form a first impression of each other and arrange a video interview.
- Video call: Getting to know each other better and checking skills. You will evaluate technical skills and soft skills. The performer or team will answer your questions and solve test tasks to prove the quality of their services.
Choose a Partner Company
The paperwork confirms the choice of a particular company. Ensure the contract contains all the necessary data: a complete list of services and tasks, terms, cost, payment procedure, and delivery procedure. We recommend inviting a lawyer familiar with the specifics of IT to sign the contract. Compile the NDA–this document will guarantee the protection of your product idea.
Establish Management
You should take control from day one. Set up KPIs to track progress in each task area easily. We recommend choosing proven tools like Trello, Kantree, and Jira to monitor tasks.
And the final step would be to decide on a management methodology:
- Waterfall: Doing tasks one by one when the end goal is clear.
- Agile: Re-evaluate the project as you work to adapt to new requirements.
- Scrum: Development is done in two-week cycles (sprints), allowing frequent review of work and changes.
- Kanban: Visualization of tasks and goals when consistency is essential.
Hiring a dedicated software development team can be a daunting task. But you will be pleasantly surprised if you do everything right and avoid the pitfalls. Professionals will do everything to achieve your goal quickly and to the highest standard.
