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Today we can observe a skyrocketing demand for custom software solutions in a wide range of industries and spheres: from eCommerce and education to healthcare, manufacturing, and agriculture. That’s why it is quite clear why so many businesses today need to think about how to hire software developers. Many non-tech companies prefer not to onboard in-house programmers and choose one of the outsourcing models. One of the most popular options these days is hiring dedicated development team. But what are the reasons for this tendency and how do companies pay for the services provided by such teams? You will find answers to these questions if you continue reading our article.
Dedicated software development teams
To hire dedicated development teams for their projects, businesses need to find an outsourcing agency that will be responsible for all the administrative questions related to these teams. In other words, when you find an outsourcing partner and establish cooperation with this entity you can forget about all financial and paperwork questions associated with hiring and onboarding programmers and other experts whose skills will be required for building your project.
The search for the most appropriate specialists with the necessary qualifications and expertise will be conducted in accordance with the requirements that you will prepare. You can indicate not only the skills and tech stack that will be important for project realization but also your budget. When the candidates are found and you approve the final composition of your team, you can proceed to the first stage of your project.
Thanks to the flexibility of this approach, when you hire dedicated development team and are not sure about the requirements (or you suppose that they can change after the start of the project), it won’t be a problem. You can always change the composition of the team as well.
Of course, this model has a lot of benefits which are mainly associated with the possibility to rely on a third-party vendor in many questions. But, moreover, this model also allows companies to save their budgets as they do not need to think about such aspects as medical insurance for employees, social bonuses, paid vacations, corporate education, etc.
Let’s have a look at the models that you can choose when you hire dedicated development team.
Hiring dedicated development team: How do you pay for the services?
The costs are calculated the following way: you should pay team members for their work plus there is a vendor’s fee. The whole amount is initially paid to the vendor. Please be very attentive when you sign contracts with outsourcing companies. These points should be very clearly stated. Do not hesitate to ask questions. In general, all the calculations are very straightforward and you can always calculate in advance how much you will need to pay by the end of the month. And you can also calculate how much you can save if you scale your team down or what extra fees you will have if you add new team members.
But in general, there are two engagement models that you can choose from.
- Fixed-price model. In this case, you need to determine in advance the time frames and the budget. It means that you and your IT partner will need to calculate everything beforehand and agree on a fixed price for the services of your dedicated team. Even if the project turns out to be more complicated than it was expected, the price won’t change.
- Time and material model. This option ensures better flexibility and it’s better to choose this variant if the scope of the project is not clear at the moment when you are hiring dedicated development team. The final amount will depend on the effort and time that were invested in the project development. But in any case, you already know in advance the rates of each team member.
Final word
As you can see, when you hire dedicated development team, you can enjoy a lot of flexibility which means that you can always introduce the necessary changes that will correspond to your new business needs and demands. That’s why this approach is considered to be a very good one for long-term projects with changing requirements.
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