October 24, 2017

WHAT IS DEDICATED TEAM MODEL

Offshoring dedicated software development team has become a common strategy that is being used by most companies these days, as part of their operations. However, for a greater turnout, a company needs to have a full comprehension of what such a contract entails. Dedicated team model is an example of such a contract, it is an agreement between a client and a service provider in which the former, outsources for services they do not have on a long-term basis.

The dedicated software development team services are usually offered by the dedicated development center outsourcing provider who establishes a group of professionals with specific experience and skills that suit the client’s project demands on the base of his infrastructure. Thereafter, the client may decide to handle the team by themselves or assign a project manager from the outsourcing services provider or his personnel to manage the team on their behalf.

The main objective of a dedicated team model is for the dedicated software development team to seamlessly meet the requirements of the clients’ operations. At first, dedicated offshore developers are usually a working but external part of the company. However, with time, team members blend with the company’s culture, management and all that it entails to a point where they become part of company’s personnel staff. They, in turn, share the same goals to making the company better at its operations and producing high-quality products or services.   

The general step by step of a dedicated team model:

  • The client asks outsourcing provider for a number of specifically skilled and experienced suitable employees for the requirements of their business operations
  • A service provider looks out for such IT professionals and any other individuals required for the group
  • These IT experts are then brought together to form a team and a plan is obviously made for their working hours (it is usually regular working hours)
  • The project being long-term, the team continuously works on the project and gets to understand the specifics and most importantly, the general idea of each separate task with an aim that in the end, they produce standard results.

 

With this model, each client is usually provided for their own dedicated software development team. This is usually essential as well as advantageous as the clients can easily put into plan resources and its usage, time and work volume thus avoid wastage and get the maximum benefit. The client is also fully in charge of the team’s progress and workload due to a crystal clear project management together with the convenient and frequent interactions with the team.

dedicated software development team definition by services models
Offshore development center in comparison to the other outsourcing service models.

ISVs place in this model

Generally, an ISV creates software coinciding with the hardware, software or a cloud platform provider. Companies that offer platforms such as Microsoft, Oracle, IBM, Apple, AWS, and others, try to prop up ISVs by creating ISV programs for them to develop their own applications that run on their programs. However, it is obvious that some of these companies can create their own applications, so why offshore ISVs? In fact, numerous ISVs collaborate with Microsoft to develop, market and sell their software for Windows office, Xbox, and Azure.

In most cases, such companies lack resources or the know how to make the applications that specifically fit in every niche requirement or market, therefore, use the ISVs to do so. Some of the ISVs operate under a certain organization or partnership offering platforms for other IT specialists, their goal is to have contracts with companies which they can provide for the specialists for their expertise.

Typically, ISVs are not owned by any platform holder and, pitch their products to a primary vendor such as IBM since the latter lacks them directly to the platforms end users. This allows the client of the vendor who is the third party, to rent the ISV’s software services. ISVs in turn, create competition together with catalyzing the speed of technology innovation and advancement.

Basically, ISV is simply a software company who sells their products to the end users. These companies can vary in size from such giants as Salesforce to very small organizations of five people developing solutions for a very tight niche. Regardless of the size, they all are facing same frequent challenges such as high development costs, inability to find required software engineers on the local job marketplace, and lack of the experience with some platforms, technologies, hardware etc. Establishing the dedicated software development team on the basis of the outsourcing provider’s resources can be an ultimate solution to all the problems mentioned above. Further, we’ll try to give dedicated development team definition in regards how it can help ISVs to achieve their primary goals.

WHO SHOULD USE A DEDICATED TEAM MODEL

Dedicated team models are majorly used by a client software vendors or enterprises who have calculated and assessed that owning a project development has more drawbacks and sophistications than offshoring one. Therefore, by hiring a dedicated software development team, they are indirectly cutting off avoidable expenses. Also, there are those clients who find it easier to outsource in a service that will continuously and gradually develop to a high-quality final product. For instance, companies with the brands such as Oracle or Microsoft find it cheaper to encourage ISVs to develop software for their platforms.

For complex projects whose requirements will frequently change, dedicated team model is also suitable because first, it usually for long-term projects. Technology itself is known to go obsolete really quick and you require a team that is enthusiastic to keep up with the changes and enables you to produce standard products. In turn, a dedicated development center is there and able to flow with the changes and easily adapt to them.

In addition, startups from America and Europe have financial difficulty of hiring software developers from their own countries but find it very affordable to offshore dedicated teams in a country like Ukraine. Since dedicated team model has the balance of flexibility and a planned budget regardless of the unclear scope, it is majorly preferred and used by such companies.

Advantages of going for the dedicated development team model:

  • The dedicated development team over time usually grows to be part of the main personnel which comes together with loyalty
  • A client usually has complete control over the team dedicated model process and the team itself.
  • Since one client usually has their own dedicated team, the team gets to have an intense understanding of the client’s requirements.
  • There is an advantageous interaction between the team and the client. The client is able to transparently manage the project using tracking web tools such as Skype, Asana, JIRA, while as for the team, they are able to comprehend the specifics of the project from the day to day communication.
  • Dedicated team model is one transparent contract. A client can easily manage costs and conduct budget control seamlessly
  • It is also a very flexible model as the scope and workload are not fixed; they can change with time for the sake of keeping up with the world standards or if the client wants to make changes.
  • In the end, there is certainty of team cohesion and stability for production of a quality product.

 

The dedicated team model is known for its transparent and simple pricing system as the dedicated software development team is paid monthly by the client. The cost includes the whole team’s salary and the provider’s fee which comprises of overheads, administrative and infrastructure expenses.

EXAMPLE OF THE DEDICATED SOFTWARE DEVELOPMENT TEAM MODEL PROJECT

Let’s give dedicated software development team definition in the context of the actual and long-lasting project and give a real example of the successful dedicated development center project. Being a custom software development company Existek is involved in the big number of projects where engagement is based on the dedicated development team model. We’ll take an example of Ligit AS –  ISV company located in Norway, who decided to establish a dedicated development center in a remote location to bring fresh blood to the product development process, cut the costs, and overcome the lack of the needed developers in the Norway.

Lingit AS is well known for their assistive reading and writing software for people with disabilities such as dyslexia. Over the years their products, including TextPilot, have become an industry standard and helped thousands of people to live and work despite their difficulties with everyday tasks.

This is the short description of the company in 2017, but let’s travel back in 2009 and compare the situation to see the dedicated software development team can help ISV. Before the begin of our collaboration, Lingit experienced difficulties with the support and integrations of their products and began to search for the team experienced in the text scraping automation and specific APIs for that. Their search began with the dedicated software development teams in Romania, India, and China, but it didn’t work well because of the high staff turnover or just lack of understanding and low quality. After all, they’ve approached Existek and started a pilot project that has been completed with the results that exceeded the expectation.

In case of this project, work has started only with one dedicated .NET developer, but soon the team grew to the dedicated development center of five developers full-time working on Lingit products development, testing, and deployment.

Sverre Andreas Holbye, Lingit AS Product Manager, gives the following dedicated software development team definition for ISV:

Existek has been working with us for a long time, so they’ve come to know our solution well. They can make suggestions and improve our specifications.

On the start, our dedicated software development team started to work on the text-scrapping module which was critical for the overall work of the web-based .NET application. Over the time, when our ISV partner was sure that everything went well with that component, the whole scope of the Windows application development has been passed to the Existek dedicated software development team. Also, we’ve been working a lot on the routine activities of the development like numerous integrations required for that kind of the reading and writing assistive technology. The work related to the order and licensing components of the Lingit products have been passed to Existek dedicated development center too. During the years of collaboration, our team has got on the inside of all Lingit solutions and become able to make valuable suggestions to the specifications and work on the solutions as a full-fledged part of the organization. As for the management model, we use one manager to render the customer’s requirements to the rest of the team. For the project management, we use JIRA, GitHub, Bitbucket etc.

It is worth to mention the positive influence of our dedicated software development team on the development process in general. Among others, Agile and CD have been introduced under the guidance of Existek software engineers and project managers. This allowed Lingit to respond faster to the market requirements and as the result, win the race with the competitors and become number one solution in their field. Also, we have been performed code refactoring for years and now we can say that there is no technical debt and legacy code in software solutions we’ve been working under the guidance of Lingit team. The fact that the collaboration has been continuing for almost eight years and constantly growing size of the team can prove that our partners have achieved their main goals, such as quality improvement and decreasing development costs with the help of our dedicated software development team.

COMPARISON OF THE DEDICATED TEAM MODEL AND OTHER ENGAGEMENT MODELS (FIXED PRICE, TIME & MATERIAL)

dedicates software development team definition in comparison to other models
Key differences between three major outsourcing business models.

Fixed Price Model

With this model, change is evil. Unlike the dedicated team model, there are no given allowances for future changes of the scope throughout the project because of fixed pricing. In addition, the requirements are expected to be so clear that the timeline in finishing the end-product can be determined. The fixed budget made before the starting of the project is to help the client avoid any future unplanned for costs. The fixed price model is mainly suitable and beneficial for small or medium scale organization as they have limited resources and have to manage what they have properly.  It provides financial safety for them.

In case a client decides to change or when change becomes inevitable, there will be an automatic conflict as the client will have to incur extra costs as the service provider will have to make adjustments off the planned scope. This will require extra resources that had not been budgeted for or extra time. In the process of making all these re-adjustments, a lot will be wasted and in turn, create more stress than business value.

Time and Material (T&M) Model

With dedicated team model, there is usually planning of how things are to go about in the project, more so with allowance change. However, with time and material model, the flexibility of the process is bigger. It is certainly for a long-term project but with highly dynamic requirements, an unclear scope, and workload that is expected to vary from time to time. In fact, dedicated software development teams are rarely used for this kind of the projects and the software developed are usually not sophisticated to require a lot of dedicated resources. However, the timeframe is usually preliminary established.

Nevertheless, a client has to provide a transparent definition of the project’s requirements to the developer. This is in order they can avoid wasting a lot of time on re-doing the work which would result in a lot of resource and time wasting and the client will have to incur these costs or the developer will get overworked. For this to be avoided, other than providing a clear scope of the project, the client should maintain consistence communication with the team. You can learn more about outsourcing billing models here.

IN CONCLUSION

The bottom line is that dedicated development team model is an ideal and fair approach to use for clients who opt to offshore dedicated software development teams large software projects or entire product development. It has the required balance between the other two models, therefore, fair for whatever company as long as the client is out for a high-quality product that remains up to standard with the market requirements.

Investing in a dedicated development team for development of software is beneficial for whatever companies whether software development or small and medium-sized business (SMBs). We at Existek, make it our responsibility to ensure that your investment is worth for growth of your business by ensuring you have the most convenient team for you. Visit our dedicated software development team page to learn more about this service or contact us directly to get a consultation from our experts.