The dedicated team outsourcing model is a business model of financial interaction, which is increasingly being applied in outsourcing in general and in the IT field in particular.
Given the fact that many customers are interested in using this model, we decided to talk about its advantages and disadvantages, as well as highlight the features that must be taken into account before deciding on cooperation according to the dedicated team model.
What is the “dedicated team”?
A “dedicated team” is a model of cooperation between a client and a service provider – outsourcer. By signing an agreement in accordance with the “dedicated team” model, the client receives the specialists at their disposal who were selected taking into account the requirements for a particular product.
The dedicated team is fully focused on the IT solution, while the client controls the workflow and gets the opportunity to switch attention to high-level tasks. Responsibility for attracting new specialists and administrative support for the team lies with the outsourcer.
The effectiveness of the team and KPI of each IT specialist is regularly monitored, and if necessary, adjustments are made to the workflow.
When is it worth considering collaborating under the “dedicated team” model?
The dedicated team model is recommended when you are interested in a long-term partnership with an outsourcer. It is also perfect if you don’t have the time or resources to organize a team of specialists inside your company and provide training for it, or if you understand that it may be necessary to increase the number of the team members.
In what cases is the “dedicated team” model suitable for the project?
- You are aimed at long-term cooperation with an outsourcer;- The requirements of your project often change; - You expect that in the process of work, an increase in the team may be required;- You do not have the desire and resources to form and train your team; - You want to reduce the IT department costs.
Who prefers this model?
Companies understand the benefits of a “dedicated team” model and can respond more quickly to changing business conditions while maintaining a high level of software quality.
Customers choose a “dedicated team” model when it is necessary to increase the size of the team within the company, but there is no time or opportunity to hire and train new specialists.
Compared to other models, the “dedicated team” model is more personality-oriented. When hiring a dedicated team, most customers are not just looking for additional resources for IT solutions. They seek to get motivated and interested in the project professionals who will be proactive and will do everything possible to make the final product perfect. The client needs specialists with whom they can communicate, who will "speak the same language". Therefore, the identity of the team members is very important.
The “dedicated team” model is most often used on long-term projects. As the name of the model implies, you will get a team dedicated to the project and determined in solving problems.
What are the 3 main advantages of this model?
Along with the involvement of the team (which is typical for this model), we can also mention the transparency of the process, the ability to control the progress of work, and the ability to quickly scale the team. Depending on the specifics of the project, the dedicated teams can work on the customer’s premises, remotely on the outsourcer’s premises, or combine both interaction schemes.
What are the main success factors of a “dedicated team” model?
The success of any dedicated team depends on how well the service provider monitors resources, quality of infrastructure, and the environment provided. The best option is when the outsourcer has developed a well-structured approach to the organization of dedicated teams, taking into account the wishes of the client, and also expands its IT service and develops centers of competence, deepens the knowledge of specialists. All this affects the quality of the services provided.
How long does it take to organize the right team?
Differently. Some clients trust the selection of team members to project managers and rely on their choice. Others take part in all interviews, personally check the resumes of all possible candidates. On average, the whole process takes from one to four weeks to form a team ready to start working.
If, for example, a team of 10 people is needed we usually recommend first involving 2-3 engineers and gradually increase the size of the team as the project develops. Such a solution is much more effective than involving 10 people from the start.
Some outsourcing companies have a try-before-you-buy option. If the client is not sure that the proposed candidate fully meets the requirements, they can take advantage of this offer, look at the engineer in work for a week or a month, form an objective opinion and decide whether to continue cooperation with a team member or whether to find an alternative.
How the dedicated team services are paid?
The services of a dedicated team are paid monthly. Pricing is quite simple: the amount depends on the composition of the team, its size, and skills.
When signing a contract, it is important to discuss the downtime costs for specialists: if the team does not have tasks at some point, then often the client pays for this time anyway. But in practice, situations, where the development team does not have tasks, occur extremely rarely.
Even if the team is facing technical difficulties that block their work (for example, a server or other technical system on the client’s side is temporarily unavailable), specialists will start other tasks the implementation of which may be useful for the project and the product.
Other advantages, inherent in a model aimed at long-term work with a client:
- Full involvement in the project by the requirements and methodology of the project;
- Adjustment of work time in accordance with the client’s time zone;
- Ability to interview all specialists;
- Full control over project processes;
- Detailed reports and ongoing collaboration;
- The long-term value of the project due to the accumulation of expertise and the preservation of knowledge.
To summarize the article
The dedicated team helps to get specialists who will be completely immersed in the specifics of the client’s business. In addition, the team is flexible to customer’s requirements and, when such a need arises, can be scaled.
Regardless of the industry, your business goals, software features, the “dedicated team” model helps to get a team of dedicated developers who will work according to your chosen interaction scheme: remotely, in your territory, or combining both formats.