When it comes to building a tech product from scratch, first-time startup initiators usually have more questions than answers. Being inspired by their idea and the confidence in future success, they still have to make wise business decisions. Deciding on a tactic to gather and hire a development team is one of them, so in this article, we will discover one of the possible software development outsourcing models - hiring a dedicated team for your startup.
Hiring a dedicated development team is one of the approaches to software development outsourcing. According to this model, a startup initiator can hire a ready-made team of IT professionals sourced by the development vendor, which, in turn, is responsible for providing the team with the workspace and necessary equipment, plus deals with payrolls, taxes, and other team management expenses.
The customer, in turn, gets a development team sized and staffed according to the project requirements. The team is managed by the Project Manager, sourced by the tech vendor, while the customer is welcome to control the development progress, stay in touch with the team via daily and weekly meetings and make adjustments to the development course. The cost to hire a dedicated team is calculated based on the hourly rate of each of the team members, according to the “pay as you go” model.
Hiring a dedicated development team is one of the top choices modern tech startups make with the goal of getting several value-adding benefits at once. Below are the most promising ones.
Depending on the project requirements and the development course, the size and structure of a tech team can be different. Below we are listing the basic roles of such a team along with their responsibilities.
There are three basic strategies to hire a dedicated development team for your project. Each of them comes with its pros and cons but still can be tailored to the project specifics, so let’s discover them in more detail to find the one that suits your startup best.
Gathering an in-house team is the most intuitive option, especially for the first-time startup initiators eager to fully control each of the code lines. Such an approach actually makes sense but for the projects with in-house management experience and access to local tech talents at the budget-fitting cost.
However, for startups on a budget and with no resources for hiring and recruiting, this approach turns out to be the most expensive one. In addition to hiring costs, you will also have to pay office rent, taxes, and other organizational expenses.
In one of our recent articles, we have already dwelled on the benefits of remote work for developers. This option may also be value-adding for startups since it allows for saving operational costs, accessing global talent pools, and running your project development as flexibly as possible.
As for drawbacks of this strategy, remote teams can be fairly difficult to manage, especially when the team is gathered from scratch, the team members have different time zones and there is a language barrier. However, if the pandemic enriched your company with during-Covid remote team management experience, hiring a tech team remotely may be a worth-trying option.
Hiring a dedicated development team is one of the approaches to software development outsourcing. While outsourcing your project building is value-adding by its nature, hiring a dedicated team from a vendor is one of the engagement models that is also promising for newly created companies.
In addition to the opportunity to run your project creation in a fully remote mode and save operational costs, you can get started with the development process almost instantly, bridge the talent gap, access the necessary tech expertise, and still be flexible with the team size and staffing.
Gathering a dedicated development team is a promising tactic to build your tech project. However, there are some essential things you should keep in mind before getting started with your product creation.
Choosing a destination to hire a team from is one of the most important questions to solve before launching the development process. There are several popular countries to choose from and each of them has its specifics.
For example, US companies often choose Eastern Europe to hire a dedicated team from, opting for Poland and Ukraine. However, the recent conflict in Ukraine has changed the software development landscape, and now, most companies are looking for countries with a more stable political and economical situation. or instance, Azerbaijan is a country worth paying attention to - it offers a perfect price-quality match when it comes to hiring tech specialists which are pretty skilled with popular programming languages and frameworks, have high engineering education, and can boast of high English proficiency.
This point is the logical continuation of the previous one. When your company hires an outsourced development team, making sure your business values and ethics overlap is essential. This is the only way to avoid miscommunication, develop a common vision, and stay on the same page at each of the development stages.
Control and communication are the biggest challenges when it comes to outsourcing your software development and hiring a dedicated team. Remote teams are difficult to control even when they are hired by and managed by your company but in the case of outsourcing, the project management is the responsibility of a vendor.
That’s why you have to discuss the control and communication practices in advance, without hesitating to suggest the tools and approaches that will work well for your project, in your opinion.
Sometimes, software development outsourcing may be pitfalling, especially if you haven’t validated the development vendor’s experience, expertise, and reputation in advance. That’s why it is essential to trust your development process to a reliable vendor only.
You are always welcome to validate their experience by reviewing the case studies published on the company’s blog, reading reviews on Clutch and Good Firms, getting in touch with the previous customers, and asking to sign an NDA before the first consultation.
When outsourcing your project development, you can also choose between fixed price and time and material engagement models. The first is better suitable for small to medium startups with no development pitfalls expected, while the second perfectly matches the opposite requirement. Hiring a team according to the time and material contract makes sense when the development time and project complexity are difficult to estimate, for example, for legacy system modernization.
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