An offshore dedicated team model is cost-effective for companies that are willing to boost their productivity. The reason behind the growing popularity of hiring dedicated teams is quite simple: employing reliable professionals to join your internal team full-time is more expensive and time-consuming; it requires HR specialists, purchasing expensive equipment, software and other expenses.
One of the major customer concerns, when deciding between outsourcing and hiring an internal IT unit, is project management and quality control issues. Taking on additional expenses to fully control the project development process might be reasonable, but as the dedicated team model assumes a full-time involvement of offshore professionals in the client’s project and a possibility to communicate and distribute tasks directly to each member of the team – the advantages of the DT model are becoming more obvious.
A dedicated team has a very transparent and simple pricing system: every month the client needs to pay the service provider a particular amount of money that depends on the size and composition of the offshore team and the contractor’s fee that comprises administrative and infrastructure expenses, and of course the margin.
As a summary, I’d like to point out some of the advantages of the Dedicated Team model:
- The service provider takes upon himself the responsibility of finding IT experts with the appropriate knowledge and understanding of the client’s needs, while the client has complete control over the selection, motivation and management of the members of the dedicated team.
- No infrastructure, hardware or software expenses for the client.
- Flexibility to reduce or increase the size of the dedicated team according to your project’s requirements.
- The workload and scope are not fixed and change requests can be made at any moment.
- Wider access to technology experts.
One of the most important features of the dedicated team model is that an offshore team is assigned to just one client. If a team member is working on a few projects for different customers simultaneously, his efficiency and motivation may suffer.
Dedicated Team members are always available for requests and customers are free to manage resources and plan project development according to their requirements. Reporting and time management should be clear and simple.
However, there are also some limitations to be mentioned:
- For short-term projects, the Dedicated Team model may be less efficient when compared to the fixed price scheme.
- The selection of team members should be taken very seriously, as without interviewing all of the offshore team members there is a risk of involving underqualified team members in your project.
- The client must take an active role in communicating and invest a lot of time into management.
With good project management the client’s risks are minimal, and the dedicated team model will prove itself as an advanced and cost-efficient solution for software development outsourcing.