Dedicated Teams

Dedicated Team — the best financial interaction model for mid-to-long term projects

Dedicated Team is the model of financial interaction between a customer and a contractor, where the latter forms a team in-house to remotely provide long-term software development services to the customer. The billing model involves paying the monthly salaries of the team members + some administrative overhead fees, based on the actual amount of time worked.

The dedicated team model is best applied in mid-to-long term projects with unclear requirements, or to augment the customer’s in-house staff with remote expertise. The team and project management can be performed by a PM / Team Lead appointed by the contractor, or by the customer’s team remotely, through daily reports and task tracking systems.

Transparency and control. The team is essentially part of the customer’s staff, just managed remotely. The customer sets the roadmap and milestones and controls the project progress at all times.

  • Instant access to a pool of professionals. Hiring a dedicated team of software developers from one of means gaining instant access to highly professional talents with polished workflows, profound domain expertise and a good understanding of all the project requirements and underwater reefs.
  • Budget savings. Remote developers can begin working on the project from day one, cost less than a full-time in-house team and the expenditure is spread across multiple months. All of this results in a significant decrease in overall budget spending, as compared to Fixed Price or Time and Material billing schemes, especially for long-time projects
  • However, there are some points to be aware of:

    • Unclear specifications. As dedicated teams often work in the conditions of changing requirements and vague deadlines, they often take the lead and suggest the way the project must advance. This approach justifies itself when working with experienced contractors, who have rich first-hand experience with multiple types of projects, yet there is a risk the final product will differ from customer’s expectations.
    • Not applicable for short-term projects. Shorter projects are better done under other billing schemes, mostly because the goals and requirements can be specified at once.
    • Time-consuming management. If the customer wishes to be in full control of the project progress, they must devote significant time to controlling every aspect of the operations. The alternative is working with a trustworthy team and relying on their Project Manager / Team Lead to deal with the administrative tasks, leaving only the overseeing of the project progress to customer’s managers.

    To sum up everything above, a dedicated team model is the best choice for long-time projects with clearly defined goals, where project requirements are flexible and can change over time.


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