When outsourcing, customers typically take the...
The right business model is a key to establishing fruitful partnership between the outsourcing company and yours. To choose wisely between Fixed Price, Time & Material and a Dedicated Team, you need to understand how they work and which business scenarios they suit best. Today, we’ll guide you through twists and turns of a Dedicated Team model.
The dedicated team is one or more employees of an outsourcing company who work exclusively on your company’s projects and maintain a tight collaboration with your in-house IT team. It is a good solution for companies seeking to extend their software development capacity or to add expert knowledge to their existing in-house team.
The model has recently come in high demand with fast-developing enterprises striving to foster innovation and significantly improve their services and products quality.
It is praised for offering transparent pricing system: payments are to be made monthly and depend on the size and composition of the team. The payment is calculated by summing up each team member’s monthly salary and provider’s fee, based on administrative and infrastructure expenses and overhead.
1. When to use an offshore dedicated team:
- for large-scope long-term projects where the initial requirements and objectives are unclear or subject to frequent changes;
- for filling the skills and expertise gap in your own in-house development team;
- for speeding up an evolving project by redistributing tasks and reducing the workload.
2. Dedicated Team development stages:
- As a client, you specify the desirable skills of potential employees;
- The provider scans the local market for professionals with relevant expertise and potential;
- The provider hires IT experts on board, organizes them into a team and gives them regular hours’ workload;
- Developers in a dedicated team are fully dedicated to a project in question, diving deep into its specifics, getting to know the general idea behind each individual task, as well as your company’s vision and direction.
- To begin a project, you don’t need to have a set scope of work or precise specifications. Those can be elaborated on step-by-step both by on-shore and offshore teams as the project evolves;
- Complete alignment with your business goals and full control of project’s planning;
- Closer collaboration between internal employees and the offshore team, which allows for better coordination;
- The offshore team is involved solely in your project and can be considered as extension of your own IT department;
- Control over hiring decisions and direct access to communication with any team member;
- Ability to engage your own experienced project managers to control the workflow;
- Regular task status reports make progress control transparent and easy to manage;
- Ability to get a deeper industry expertise;
- Knowledge retention, which eliminates learning curve costs;
- Contract conditions are adjustable to project alterations;
- Scalability of operations when needed.
- Can involve unnecessary costs if the project is short-term;
- Requires extra time to manage and interact with dedicated developers;
- You have to pay the bill monthly regardless of the team’s workload, which means you have to have enough tasks for developers to make the model cost-effective;
- Employees’ skills stagnation caused by monotonous tasks;
- Developers can only use their skills within the limited number of tasks they are dedicated too, meaning they don’t apply their full professional potential to your project.
5. Key Aspects for Success
It’s crucial to clearly define the remote communication process from the beginning. Do not limit your communication to email and Skype. Make use of efficient work management tools like Jira, pivotaltracker, github and bitbucket. Define each of the team members’ responsibilities and be open for interaction.
- Agile methodology
Dedicated offshore teams are most efficient when combined with the Agile methodology. It involves daily discussions, continuous specification review and in-time clarifications, which helps reduce the risk of a non-uniform task resolution, late results and lack of understanding.
All in all, opt for a Dedicated Team pricing model if you seek a long-term strategic partnership that is both cost-saving, effective and provides rich technical expertise.