February 16, 2017

The dedicated software development team model serves to be cheaper than outsourcing a project. In this article, we explore major benefits that a dedicated  team model brings to the client in comparison with a standard outsourcing model.

 

It’s obvious that outsourcing isn’t a simple task. It continues to face challenges that don’t generally come to mind when thinking about engagement purposes. What’s even more troublesome is the captive center model some organizations use. Although the model offers extra regulation and ownership, in several instances, such a model is treated as a regular outsourcing relationship, taking away the intended “competitive advantage”.

One version that has existed for a while and is sometimes neglected is the DDC (dedicated development center). This team develops, tests, and deploys solutions with the advantage of having a dedicated infrastructure and core team. With a core team, a remote outsourcing project works like a captive model that acts as an attachment to your company. The greatest dedicated development team setup resembles staff members, as opposed to vendors.

dedicated software development team model comparison with other offshore development models
Comparison of the dedicated development team model and other outsourcing approaches.

Let’s discuss the dedicated development teams more. The dedicated team model serves to be cheaper than outsourcing a project. A project manager controls the remote development team according to the client’s directions. With a commercial dedicated development center structure, the client deposits a monthly fixed fee to produce one big project or a series of projects. A dedicated offshore development center has a yearly evaluation cycle to modify rates, assess total quality, conduct performance reviews, and align the deposition with the organization’s ultimate budgeting process, as any entity within the company would do.

With this development team model, you can direct your team as an extension, get more exposure, and regulate expenses. Additionally, it means that developing a conversation and process for getting more value. Because of the way a dedicated software development team operates there is generally more adaptability in how the developers work, and how the management implements new strategies to focus on the company’s objectives.

Dedicated development team attributes:

  • A dedicated organization that that shares your corporate culture
  • A core software development team
  • A security policy that adheres to your requirements and standards
  • A dedicated infrastructure (software and hardware aligned with your company)
  • A specific HR strategy
  • A dedicated training and education program
  • Team availability to scale down or up as necessary without raising expenses or overturning the budget 

Some people may compare this to a BOT (Build, Operate, Transfer) technique. The BOT model is a type of dedicated team model, but with a big difference in ownership. The contrast is like buying vs leasing a car. Both options need a similar upfront cash outlay. The lease provides the benefit of change more often with reduced expenses, as opposed to the purchasing option which comes with the advantages of depreciation, but with a limited contract.

WHAT CAN A CUSTOMER EXPECT BY USING A DEDICATED OFFSHORE DEVELOPMENT CENTER?

A dedicated offshore development center comes with great advantages. Let’s have a deeper look at these benefits and explore why software product companies and SMEs frequently engage with outsourcing contractors using this particular dedicated team model.

Value

  • The supplier’s complete operation cost decreases in dedicated development teams and the client can save money.
  • The supplier can provide a better commercial model since commitment and visibility are better.
  • Large retention rate improvements result in reducing the conventional attrition or challenges.
  • The contractor is more interested and engaged in knowing about output and results that meet the client’s objectives.

Flow

  • The time for producing RFI/RFPs and BIDs is reduced or eliminated, allowing to spend more time on producing value.
  • The dedicated team model means that learning curves reduce over time.
  • Employment flexibility permits fast modifications and maintains the flow of productivity.

Quality

  • Suppliers can be more ready for the work; capacity and resource coordination are enhanced, demand is better comprehended.
  • Cultural integration and team education modify focus and enhance quality.
  • Information transfer is executed and managed better, retained, and utilized in both client and team organization.

What’s your opinion about the dedicated development team model?

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DEDICATED TEAM MODEL WORKING PRINCIPLES

communication with dedicated software development team
Communication is the key to success in any project with the engagement of the software development team.

Offshore development team working principles must be developed and strictly followed. They are included in a few key areas:

Development Team Steering Committee

  • Quarterly inspections to track ongoing work, make changes, and make sure that the cultural mentality is being used and maintained.
  • Represented through an agreed escalation and governance model that includes CxOs from both parties as to the decision-makers.
  • Yearly evaluation for joint strategic technology and business planning.

Relationship Management

  • Facetime in every location between key roles (quarterly/planned visits both ways are paramount to the success of these associations) – avoidance will result in a negative outcome.
  • A strong set of rules of engagement and roles to ensure regular interaction and teamwork from both sides.
  • Properly established communication to trade necessary and crucial data with stakeholders, i.e., corporate social media platforms, weekly reports, etc.

Performance Management

  • Typical language explanations that are specific to this relationship (i.e. “what does great work resemble for the project, relationship, and company?” and “what is the definition of complete?”.
  • Specified metrics and measures that overall value for the company (not with software development performance; dashboard KPIs method is also used). 

Web 2.0 and SaaS development has become very expensive. Outsourcing is a part of the strategy for many IT enterprises and startups. Outsourcing development share is expected to increase in the next years. It is self-evident that companies are looking for new and more effective models which combine advantages of outsourcing and in-house development like low costs and deep process ownership at the same time. A dedicated software development team is a model that can bring more agility into the process and build a long-lasting profitable relationship for both parties. The best outsourcing services providers have already stepped into the dedicated team model and offer this service for their partners because long-term relations and the highest possible client satisfaction level are exactly what they’re seeking.

EXISTEK is a custom software development company with rich experience in establishing dedicated development teams for our partners. Visit our dedicated development team service homepage to learn more about this model or contact us directly to talk with our expert who’ll help you to set up an offshore development center that will be perfect for your business goals and development cycle.