In recent years, the trend of outsourcing software development work to third-party contractors has been on the rise. This is not surprising, as outsourcing offers a number of advantages for companies in terms of cost savings and agility.
According to a study by Deloitte, 70% of respondents in the survey acknowledged that cost reduction is the key reason for them to consider IT outsourcing. Among various IT outsourcing services, the dedicated team model has become one of the most popular choices for many enterprises.
The dedicated development team model, also known as a dedicated development team, refers to a situation where a company contracts with a third-party provider to establish and maintain an offshore development team that works exclusively for the company. This team can be either co-located with the company or located on the contractor’s own premises.
8 Primary Benefits Of Outsourcing A Dedicated Development Team
Why do businesses should hire and set up a dedicated development team? The most common reason is to save on costs. But there are many other reasons too. Below we have listed eight benefits of outsourcing a dedicated development team that businesses should know.
Cost Reduction
Hiring a dedicated development team is often more cost-effective than hiring in-house employees, especially for small and medium enterprises. This is because when you outsource, you only need to pay for the services you need and not for other associated costs such as employee benefits, office space, and so on.
Access To Skilled Resources
When you outsource a dedicated development team, you will have access to a pool of skilled resources that can be matched to your specific needs. This is especially beneficial for businesses that do not have the internal capabilities to source and train employees with the necessary skillsets.
Flexible Scalability
Dedicated teams offer increased flexibility as businesses can scale up or down the size of the team according to their changing needs. This is in contrast to your in-house teams, where businesses would need to go through the process of recruiting and training new employees whenever there is a need to scale up the team.
Improved Quality
When you work with a dedicated development team, you will have access to best-in-class processes and tools that can help to improve the quality of your software products.
In addition, dedicated teams are usually equipped with strong project management capabilities, which can help to make sure the timely and successful delivery of projects.
Increased Speed To Market
One of the key benefits of a dedicated team is the ability to ramp up the team to meet tight deadlines quickly. This is because of the fact that businesses do not need to go through the time-consuming process of recruiting and training new employees.
Enhanced Focus On Core Business
By outsourcing non-core functions such as software development, businesses can focus more on their core competencies and business goals. This is because they do not need to worry about the day-to-day management of the development team.
Improved Risk Management
When you outsource a dedicated development team, the risks associated with software development are transferred to the service provider. This includes the financial risks as well as the risks related to project delivery.
Increased Customer Satisfaction
Last but not least, businesses that outsource a dedicated development team can expect to see an increase in customer satisfaction levels. This is because dedicated teams are usually more responsive to customer needs and feedback and are able to deliver high-quality products that meet customer expectations.
How To Find The Right Dedicated Development Team For Your Project?
A dedicated development team can be a big boost for your project; however, only if you have the right one by your side. First and foremost, you, business owners, need to grasp the main characteristics of a perfect dedicated development team before you start outsourcing one.
Afterward, it is important to choose a reliable outsourcing service provider that is a good fit for your business. Here are some primary factors you should consider from an IT partner for dedicated teams when making your choice:
- Technical expertise: The service provider should have the necessary technical expertise to deliver the project successfully. This includes having a good understanding of your business requirements as well as the technology stack that will be used for the project.
- Industry experience: It is also important to choose a service provider with relevant industry experience. This will help to ensure that they are familiar with the latest trends and best practices in the software development industry.
- Project management capabilities: The service provider should have strong project management capabilities to ensure the timely and successful delivery of projects. This includes having a good understanding of project management methodologies as well as the tools and techniques that will be used for the project.
- Flexibility: The service provider should be able to offer you a high degree of flexibility in terms of the size and composition of the team. This is important if you need to scale up or down the team according to your changing needs.
- Location: The service provider should be located in a country that is convenient for you to work with. This includes factors such as time zone, language, and culture.
- Pricing: The service provider should offer you a competitive price for their services. This includes being transparent about their pricing model and offering you a price that is fair and reasonable.
- Communication: The service provider should have good communication skills to ensure that they are able to understand your requirements clearly. They should also be able to communicate efficiently with the team.
- Contract terms: The service provider should offer you a contract that is clear and concise. The contract should also be strict yet flexible enough to accommodate your changing needs.
- References: Last but not least, the service provider should be able to provide you with references from their past clients. This will help you to get a better understanding of their work ethic and capabilities.
However, there are also some risks associated with outsourcing, such as loss of control and dependency on the service provider. So, you had better be careful and took all the positive and negative aspects of outsourcing.
By doing so, you are able to make informed decisions about whether or not outsourcing a dedicated development team is the good option for your business and your projects or not.