What is a Dedicated Development Team? Pros, Costs, and When to Hire One

Hiring the right people to build your software product can be a daunting task. Between recruitment, onboarding, and managing internal bandwidth, building an in-house team isn’t always practical. That’s why more companies are turning to dedicated development teams: pre-assembled groups of software experts who work exclusively on your project.

In this guide, we’ll explain a dedicated development team, how it compares to other models, when to consider one, and what you should expect in terms of cost and capabilities.

TL;DR: What You’ll Learn

• A dedicated development team is a long-term, outsourced team working solely on your software project.
• It’s ideal for startups, scaling products, and evolving requirements.
• Dedicated teams offer cost efficiency, faster delivery, and deep product focus.
• We'll cover when to hire, who they include, what it costs, and how to evaluate them.

What is a Dedicated Development Team?

A dedicated development team is an outsourced team of software engineers, designers, product managers, and other specialists who work exclusively on your product. Unlike traditional outsourcing models where teams juggle multiple clients, a dedicated team is an extension of your internal team—but without the overhead of full-time hiring.

This model offers continuity, flexibility, and deep alignment with your product goals. Teams can work remotely, nearshore, or offshore, and are selected based on their skill sets and compatibility with your tech stack and development needs.

Dedicated Team vs. In-House Team vs. Project-Based Outsourcing

→ Learn more about adopting modular tech staffing

Key Roles in a Dedicated Software Development Team

A dedicated software development team usually consists of a few key roles, each with its own responsibilities and duties. That said, a dedicated team may have one or several key roles, depending on the company’s specific project needs. Development teams are also typically designed to scale up or down according to a client’s specific demands.

While the makeup of your team may vary by project, most dedicated teams include:

Project Manager

The project manager oversees the entire development process, coordinates tasks, manages timelines, and ensures project goals are met. They are the primary link between the development team and clients and are responsible for communicating any issues that arise. They maintain a high-level overview of project statuses to ensure benchmarks and development milestones are met.

Frontend/Backend Developers

These are the development team members who write, test, and maintain the software code. They are experts in programming languages and frameworks and must be able to build and implement software solutions based on a project’s requirements.

Learn more: 4 Best Software Development Methodologies 

UX/UI Designers

User experience (UX) and user interface (UI) designers focus on creating intuitive, easy-to-use, and visually appealing interfaces for software and websites. They work closely with software engineers to ensure the user interface is accessible, usable, and aligned with the project’s core objectives.

Learn more: UI vs. UX: What’s the Difference?

Quality Assurance (QA) Specialists

QA specialists are the first line of defense for testing the software and identifying any bugs, glitches, or performance issues. They develop and conduct test plans and provide feedback to the development team for improvements. Their goal is to ensure the software meets quality standards before release.

DevOps Engineers

DevOps engineers excel at improving collaboration between development and operations teams, streamlining the software development lifecycle by automating processes, expertly managing deployment pipelines, and meticulously ensuring seamless integration, testing, and deployment of the software.

Technical Architects

Technical architects are responsible for creating the blueprint of the software’s architecture. They make critical technical decisions and ensure the software is designed for future scalability, security updates, and performance enhancements. They check in with the dev team throughout the entire process.

Business Analysts

Business analysts are the bridge between the software team and the business itself. They gather and analyze client, stakeholder, and end-user requirements, working closely with the development team to ensure the software solution meets business objectives and user needs.

Learn more: Key Questions to Ask When Buying Custom Software

When it comes to project management, a variety of roles may be necessary to ensure its success. These roles may vary depending on the specific needs of the organization and the project in question.

Additionally, more complex projects or those following certain development methodologies may require additional or combined roles in order to manage the project from start to finish effectively.

In-House vs. Dedicated Development Team

Unlike a traditional in-house development team, a dedicated team often comprises remote employees or outsourced professionals specifically chosen for their expertise in the required technologies and domains. They are dedicated solely to the client’s project and work closely with their stakeholders to understand their requirements, goals, and timelines. The number of skilled developers on a dedicated team can be scaled up or down quickly depending on a project’s needs.

Whether a project requires a large team or just a few skilled developers, a dedicated team can quickly adapt to meet the project’s demands. It is also intended to be a cost-effective solution compared to maintaining an entire in-house team, as it doesn’t require extended recruitment or onboarding efforts to maintain.

When Should You Hire a Dedicated Development Team

Hiring a dedicated software development team offers several benefits, especially for three specific scenarios.

1. You’re a startup building an MVP or scaling fast

In particular, early-stage startups can benefit from the dedicated team model by efficiently accelerating product development while avoiding expensive hiring costs. It also allows the in-house team to focus on more business-oriented tasks so that the dedicated team can handle the bulk of the development work, fostering rapid growth and efficiency.

2. Your project requires frequent iteration or discovery

When dealing with projects with unclear requirements or a discovery phase, a dedicated team model can be exceptionally beneficial. The discovery phase plays a pivotal role in shaping the development process, and the dedicated team model ensures enough time and resources to explore and test ideas without the risk of overspending. This approach allows for an iterative process and provides more wiggle room for a team to tackle features with larger variances for development, without blowing through the client’s budget.

3. You need long-term support but don’t want full-time hires

The dedicated team model is also well-suited for long-term projects that have the potential for future growth and expansion. For instance, startups that have successfully launched and are scaling can utilize the expertise of a dedicated development team. Mental bandwidth is a valuable resource, and developers who know one project deeply can implement new features quicker than those who are working on multiple projects. It also eliminates the ‘code relearning’ period that can come with a project-based model. If a project already knows there will be iterations and later versions, those development efforts happen the smoothest when the same team members continue to work on the software.

When Not to Hire a Dedicated Development Team

Although hiring a dedicated development team has many advantages, it’s not right for every business or project. Here are a few signs a dedicated developer team might not be the best route for you. 

1. Your project is small and well-defined.

Minor projects, like small feature updates or improvements, might be better suited to an in-house team or smaller-scale contractor engagement. 

2. Your budget is extremely limited. 

While they can often save money, dedicated software development teams are an investment compared to a less efficient or specialized in-house team. 

3. Your project is expected to last for years. 

Long-term projects, such as ongoing company initiatives, can be better suited to an in-house team. If you plan to scale a project for years, it might be worth building that knowledge and expertise internally. 

Be sure to consider each of these scenarios before you hire dedicated software development teams, and determine if your project applies.

Costs of Hiring a Software Development Team

The costs of hiring a dedicated software development team can vary greatly depending on several factors. Some of the critical factors involved in determining cost include:

• Team Size and Composition: The size and composition of the dedicated team play a significant role in determining the costs. The team may include developers, designers, QA specialists, project managers, and other roles—the more extensive the team, the higher the overall costs.
• Expertise and Experience: The level of knowledge and experience of the team members can also impact the costs. Highly skilled and experienced professionals may demand higher rates than junior or mid-level developers.
• Project Complexity: Projects requiring specialized knowledge, multiple coding languages, or advanced technical skills may have a higher price tag.
• Project Duration: Longer-term projects may be priced differently from short-term engagements. Some teams may offer discounted rates for extended commitments, however.
• Outsourcing Location: Rates can vary significantly based on the country or region where the team is located. Offshore teams may provide cost advantages compared to onshore options.
• Additional Services: Additional services such as project management, quality assurance, ongoing support, and maintenance can add to the overall costs. It’s important to consider these factors when budgeting for the dedicated team.

It is crucial to keep in mind that although there are costs associated with hiring a dedicated software development team, it may also result in cost savings for your company in areas like recruiting, training, infrastructure, and operations. Since each project and team has its own cost structure, it is recommended to directly discuss pricing and terms with potential service providers to clearly understand the costs involved.

Learn more: Build vs. Buy: Which Option is Best for Your Business?

What to Look for in a Dedicated Development Team

Before you start outreach, clarify your own needs:

• What is the end goal of your software product?
• What’s the timeline for initial release vs. future iterations?
• What tech stack is required?
• How many developers will you realistically need?
• What’s your budget ceiling?

In addition to answering the above questions, be prepared to conduct some research of your own before committing to any development team. When evaluating potential partners, look for:

• Relevant case studies
• Clear communication practices (standups, reports, shared tools)
• Flexibility to scale
• IP protection and NDAs
• References or client testimonials

Prepare to post a list of requirements for the position and interview your list of candidates, clarifying and negotiating a clear timeline and budget for the job. The more experience a team has, the better.

How Hiring a Dedicated Development Team Helped One Company Tackle Its Enterprise Software Initiatives 

At Designli, our clients often lean on us to provide a dedicated team to devote to their business objectives. National Trench Safety was one such client. The company rents trench and traffic safety equipment rentals to its customers. When the NTS team came to us, they wanted help addressing their pressing software needs first, then wanted to tackle a list of new custom enterprise software projects. 

As a dedicated development team, Designli first dismantled and rebuilt the existing NTS customer portal, WorkZone. We re-architected the inefficiencies in this legacy software, making it both functional and delightful to use for NTS customers. Next, we focused our attention on RADR, a digital workflow to manage rental contracts intuitively. Lastly, we built a new enterprise product for managing purchase order requests (PORs) in a real-time, digital interface. 

By hiring a dedicated development team, NTS not only improved its existing customer experience but also added value and improved efficiency for its internal team. By focusing solely on one company’s software projects, the dedicated team was able to make NTS its only priority and drive business results with speed. 

Reach Your Business Goals with Dedicated Software Development Teams

A dedicated software development team or even a dedicated software developer brings a deep level of expertise and specialized knowledge to many situations and can provide an agile, cost-effective way to handle software projects for startups, projects with unclear requirements, and projects that are likely to need help scaling in the near future.

While costs can vary according to project size, duration, and specifications, it’s essential to consider your full scope of needs before choosing a dedicated development team or a dedicated developer.

Hire Dedicated Development Teams with Designli

Designli understands the focused specialization today’s businesses need to stay ahead. Our on-demand product teams include developers and product owners with extensive backgrounds in UX/UI and graphic design principles. You can trust our self-sufficient team to solve real business problems rather than simply doing development grunt work.

We’ll work alongside your existing employees to become an active part of your business, serving as long-term partners and product owners.

Great product support doesn’t just stop when the product is done.

To find out more, get in touch for a free consultation.  

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