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According to Statista, the European IT outsourcing market was worth a whopping 103,9 billion dollars in 2021. And it will continue to grow in years to come.
Its popularity isn’t just due to the low costs. There are different types of outsourcing for different kinds of mobile app development.
One of them is the dedicated team model.
In this article, we’ll walk you through the top benefits of this outsourcing model.
But first, let’s define it.
A dedicated team model is a team of experts who work full-time remotely for one client and one project. That means they’re completely dedicated to completing the project successfully.
The outsourcing partner provides not only the team but also equipment and other necessary resources for the project.
However, the client has to know all the requirements for the project, such as:
Since dedicated teams deal with longer and more complicated projects, the most common pricing model is time and material.
This model is great because you don’t have the same expenses you’d have with an in-house team.
However, the fees depend on:
You’ll be in the loop regularly, through daily meetings where you’ll see and evaluate what the team did. So you’ll know exactly what you’re paying for.
Try comparing the efforts you get from potential vendors, not just the cost.
Effort = duration x no. of people engaged and is expressed in Engineering Months/Weeks/Days.
Let’s say. 5 experts work for 6 months, that’s 30 engineering months of effort. That is the figure you should be comparing, not just the cost.
The cost then should more-less directly relate to the efforts, so if someone charges 30 USD/hr or 90 USD/hr makes the difference.
That means there’s no fear of overhead costs.
Find out more about how to evaluate software vendors.
Now that we covered the basics, let’s move on to the benefits.
Let’s start with the most important benefit.
Outsourcing is budget-friendly, especially if you work with dev teams from Europe.
source: BusinessOfApps
The same goes for the dedicated team model. This is even better because you have a focused team that will cost less than your average in-house employee.
Just for comparison, the cost of hiring an in-house developer in the USA is $71,508.
This doesn’t include additional costs, so the full cost is much higher.
These additional costs include:
When working with dedicated teams, you don’t need to worry about all that.
You can direct the resources you spare to other aspects of your business, like finance, administration, or even other app development projects.
Dedicated teams are more reliable and easier to manage than freelancers, too.
Just look at this comparison:
source: ALLSTARTSIT
You’ll also save time because the team doesn’t have to go through the training process.
What’s more, the dedicated team can start immediately (from 1 to 5 days) instead of waiting for weeks for the project to start. After all, they are established professionals and they’re masters of their trade.
On the other hand, when hiring in-house employees – their recruiting and hiring process is almost 2 months long.
Imagine your employee quits. The whole hiring process starts all over.
But, in the dedicated team model, you don’t have to go through it. Your outsourcing partner will hire a new addition. As shown in the table above, the hiring process for dedicated teams is just 1 to 10 days long.
All of this means that when hiring dedicated teams the risk of failure is low but the project quality will be exceptional.
One of the most important benefits of hiring a dedicated team is that you can get an entire team of experts suited for your project needs.
For example, your company has only web developers. But you plan to build a fintech mobile app. So you need mobile app developers ASAP. They’re very sought after, but there’s not enough of them on the regular market.
But when you outsource, you gain access to a bigger talent pool.
When you adjust your outsourced team members and their tasks to the specifics of your app, the whole process will run smoothly and the result will be a quality product.
They have established professionals and they’re masters of their trade.
That will be an additional guarantee of their expertise.
With a highly-skilled team, your mobile app can be of the best quality.
But, what kind of professionals can you have in your dedicated team?
Let’s take a look at the structure of a dedicated team.
The number and expertise of the team will depend on your project requirements, budget and other parameters.
However, it would be best if the structure of a dedicated team always stays the same.
The first four experts are the core of your project, especially during the discovery phase or when building a MVP.
Let’s say you want to build a fintech MVP. Your outsourcing vendor would provide you with a business analyst, project manager, UX designer and 2-3 fintech mobile developers for approximately 3 months.
source: Business Model Analyst
QAs and DevOps engineers can be added to the team if your project is robust, with lots of requirements that you can’t manage by yourself.
This leads us to another benefit of hiring dedicated teams for your project.
One of the key elements of mobile app success is that dedicated teams follow Agile methodology. In this model, there’s ongoing communication between the development team and the client or product owner.
If there’s a need for changes, they’re submitted immediately, not at the end of the project.
Also when there’s constant communication on both sides, there’s less chance for a misunderstanding that can lead to a delay in the project.
The biggest benefit is that you (the client) are included in the project all the way.
This makes the development process faster, more efficient, and ultimately more profitable.
So it’s no wonder 71% of U.S. companies use Agile.
The combination of Agile and dedicated teams is a recipe for success.
But what about your core team? They also gain a lot of benefits.
More about that in the next section.
Focus is a great advantage of dedicated teams instead of outsourcing it to a regular software vendor.
For example, if you outsource your mobile app project to a standard outsourcing company with a fixed price model, their developers will work on multiple projects at the same time.
The danger with multitasking is that people do a lot of context switching. This can lead to:
Research also backs this up. A Qatalog and Cornell University’s Idea Lab showed that 45% of people say context-switching makes them less productive.
Contrary, a dedicated team is working for you and you only.
Focus is not only good for dedicated teams, but for your entire business.
Just think about it – the most successful brands are focused on one thing:
Tinder – focused on dating.
Sofascore – focused on sport results.
Revolut – focused on money.
Can you imagine that a developer in Revolut could resolve tinder problems?
Probably not. Someone focused only on fintech wouldn’t understand the intricacies of a dating app and vice versa.
But focus doesn’t mean inflexibility. This brings us to the last important benefit.
As you develop your mobile app, requirements and priorities can change.
Sometimes that means an addition to the team is the next step.
Let’s say you need a React Native developer because you’ve decided you want to build both an Android and iOS app.
No sweat. Depending on your requirements, your outsourcing partner can find the expert and add them to the existing team.
Sometimes it’s not about the developer. This model also makes it easier to do changes to your project’s scope or deadline.
Since the team is in constant contact with you, these changes won’t get them running around in panic. The changes will go in line with the project’s progress.
Also, as mentioned earlier, dedicated teams are composed of different experts, which you can use as needed, and that makes running the project more flexible.
The easier it is to adapt your team to project changes, the development will run smoothly and be more successful.
Now let’s look at situations when a dedicated team will come in handy for your project.
Now that we listed the most important benefits, let’s see in which cases you should consider using a dedicated team.
The growth of a company is a very exciting and important milestone. But with growth come more responsibilities. One of them is hiring new employees.
This is a nerve-wracking, expensive and long process. However, you spare not only time but also money by outsourcing some of your projects to a dedicated team.
With a low budget, it’s hard to maintain a large in-house team. So the best solution is to outsource. They have the skill sets you need but you won’t spend as much money as you would on an in-house team.
Another situation that calls for a dedicated team of IT experts is when you have a long-term project. These kinds of projects mostly need lots of maintenance and updating and someone who will keep track of everything for a longer period of time.
With a dedicated team, the quality of your project stays consistent.
Speaking about quality, a team completely dedicated to your project will naturally deliver quality results.
If your project is too complicated to be handed to a freelancer, or it requires specific skill sets you’ll only get from someone outside of your team, hire a dedicated team.
Only a top-notch mobile app can survive in the market.
It’s a great feeling to have someone who is completely focused on your project.
The best people for that job are experts in a so-called dedicated team.
The benefits are numerous, including:
So, if you are looking for a team that can bring out the best in your mobile app, let’s talk!
We gathered a couple of questions to help you out choosing the best possible outsourcing partner for your mobile app project.
Finding the perfect outsourced app development company is not a stuff of fairytales. It’s indeed possible. Make sure you keep track of these 8 factors.
To make a clear decision take a look at our comparison.
