Why a dedicated team is the best pricing model for app developmentJill Ross
A Dedicated Team model has proved to be an efficacious choice for the particular projects. It saves your money and nerves. To help you understand whether you need a dedicated team or don’t and how not to fail while hiring it, we’ll walk you through the comprehensive guide below.
The benefits you get with the Dedicated Team pricing model
Before we go further, let’s figure out what it means to work on dedicated team model. The business model that refers to an agreement between the client and service provider, when the latter provides software development professionals to the client, is called Dedicated Team model. The specialists are chosen according to the demands of the client for their experience and skill sets.
The next main question is what types of the outsourced projects require a Dedicated Team? First and foremost it is a choice for long-term cooperation when a large volume of work is expected. Cause it is not a good idea to change developers while working on a complex project. So this model is ideally suited for long-term projects, where requirements are unclear and scope changes frequently. It is also used when client’s own team lacks skills or expertise in specific areas and client needs to have a strong technical team on his side.
All in all, there are two main reasons why you may consider to outsource the dedicated team being a business owner or occupying the leading positions at the company:
> The ability to involve the best specialists in your project or to extend and empower your existing team with strong experts
> Price. Cheaper price. Much cheaper price, than to hire in-house staff
The main aim of the dedicated team is to work seamlessly as part of your team to provide quality, unique and project-specific solutions.
So, how it works?
You might think that the dedicated team is solely the prerogative of big companies with long-terms ongoing projects. But, actually, it isn’t. Startups can also use the power of the dedicated team, but in this case, their team should be staffed with CTO or at least they have to have a person in-house, which knows all project details and requirements and is ready to communicate them to the dedicated team.
For its part, the outsourcing company provides all staff required to implement the project. As a rule, the time gap between the decision to set up a project and the actual start of work is minimum.
The process of assigning of dedicated team is pretty simple and include the following steps:
> The project details discussion: specs, needs, requirements, the scope of work, team size
The client communicates with a manager in the outsourcing company and discusses the details.
> Rough project estimation
The company makes the preliminary estimation of dedicated team expenses in order to help the client understand the budget framework of his project.
> Getting client confirmation to move on
> Signing a contract
> Getting a deposit fee
Before starting the hiring process, it is required to provide a deposit fee. Deposit fee is a total monthly salary of dedicated team members. The outsourcing company needs to have a prepaid month in advance as a guarantee. It is just like an apartment rent deposit.
> The team assembling
The outsourcing company searches and approves each candidate with the client providing him with the resumes of potential dedicated team members.
> Team members approval
> Start of work
> Reduce your project costs
The outsourcing company charges the fee solely for its services. The cost of dedicated team salary is transparent for the client and there is no additional or hidden fee here.
As a rule, the outsourcing company fee depends on the dedicated team size. Because the workplaces and office expenses are lying on its shoulders.
The dedicated team has proved to be cost effective solution for many projects. For instance, 70% of customers of The App Solutions, a mobile development company choose the dedicated team model while developing apps or software.
In this case the client gets highly qualified and competent experts, project managers, equipment, resources, and infrastructure based on project requirements.The proposed team is 100% concentrated on his project, moreover, the guys from dedicated team become a part of client’s company, and he can expect them to put some value in it.
And there is one more important notion here you should take into account, the contract with the dedicated team is signing at least for six months.
To sum it up
To work with dedicated team or not depends on your project requirements. But the dedicated team could be a good choice if:
> The project requirements or task priorities are changing on the go
> The end goal is unclear
> It’s long-term development
> You want to save money and resources but receive a good quality
> Your goal is to empower your current team with high-level professionals
The Dedicated Team Model of work is good enough to satisfy the needs of long term projects, but, of course, it is not the only one possible variant. There are other efficient models of interaction such as Time & Material Model and Fixed Price Model. Which one to choose is up to you. It all depends on your company’s needs, structure and abilities.