WHY DEDICATED TEAM IS MORE COST EFFECTIVE THEN IN HOUSE
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A Dedicated Team
A dedicated team, as opposed to an in house, implies the involvement of an outsourcing company that provides IT-specialists for a project. This company sells several team members, and the workload is guaranteed for several people for a certain period of time. The hired specialists are informed about the requirements and timing and are entirely focused on the completion of this particular project.
A customer, however, still has full control of a group. An outsourcing agency plays the role of a recruiter, provides administrative support, and is responsible for attracting new specialists; if any of them are needed – dedicated teams are easily scalable. A dedicated team implies a monthly salary of all group members, and additional administrative costs, it might include quality assurance engineers, UX/UI designers, developers, business analysts, project managers, and others.
How do you arrange work with a dedicated team?
A group is formed with regard to the level of professionalism of each of its participants and the project budget. To begin with, a customer should decide what skills are required for potential employees. The next step is taken by the outsourcing company – it is looking for IT specialists with the appropriate qualifications. Then developers are united into a team and start working.
What are the main advantages of inviting a dedicated team rather than using one of your own?
Well, to start with, a dedicated team means that you work with specialists that have a deep understanding of your expectations and see the goal clearly. Another important benefit is the flexibility of this approach – the workload and its volume can be changed at any stage of the project implementation.
One of the essential benefits, however, is cost efficiency – the expenses are predictable; a customer has full control of the budget. Why? Because, on the one hand, dedicated team members have less opportunity to learn new techniques or acquire new skills outside their area. But this means that they already possess what is necessary for the implementation – it is checked at the selection stage. They are chosen with regard to the requirements for a specific product.
Cost efficiency is also related to the fact that a dedicated team (unlike in house) requires no additional training. This saves resources. In times of crisis, it is more reasonable to temporarily hire a group of professionals than to create new jobs and search for employees. Building a team from scratch postpones the start of the project and requires additional costs.
Does this mean that a dedicated team is always better than in house?
No, the choice is up to you and depends on the kind of project you are going to deal with. Hiring a dedicated team for a short-term project is pointless. This approach works best for long-term initiatives. Why? It is too time-consuming for a customer as they should invest a lot of time in communication. If you plan to work on the complicated product, expand it in the future and release updates, a dedicated team is definitely a more reasonable choice that will save your time and money.
Just ask yourself the following questions:
- Are you developing a complicated project?
- Would you like to manage this process personally?
If yes, a dedicated team would be an appropriate choice for you. The same refers to cases when you need to increase the number of group members.
Some other drawbacks include remote interaction with the team and possible differences in time zones.
The main advantage of the dedicated team model is that the group is fully involved in your project, and you still keep full control. It will enable you to reach a qualitatively new level and stay ahead of the competition. About 60% of current IT-projects are based on the dedicated team model. In some cases, it is possible to combine it with in house. It is effective if a business needs to develop as quickly as possible and requires ready-made solutions. For instance, an in house team will work on more important, business-focused tasks, while the dedicated team will do additional work. This model is a company-oriented approach. It is about finding people who would be in tune with you. Such a model is perfect for long-term projects if there are not enough qualified employees within the company.