A to Z Guide: How to Hire a Dedicated Software Development Team

According to the Global IT Outsourcing Market 2020-2024 report, the global IT outsourcing market is expected to grow by $98 billion by 2024. Cutting costs and streamlined access to talent are the two primary reasons that prompt businesses to outsource their IT needs. Dedicated team outsourcing is one of the most popular models, as it’s directed at the strategic and integrated partnership between businesses.

In this article, we’ll guide you through the dedicated team hiring process. We’ll talk about when and why you may need it, how to hire and manage the team, and what mistakes to avoid.

What is a Dedicated Software Development Team?

A dedicated software development team is an outsourcing model allowing you to enjoy robust software while leaving production and maintenance to a team of experts. A client company pays the outsourcing software development vendor to bring on board the dedicated development team to satisfy demands for developing web/mobile applications. 

If We Could Name One Killer Advantage of a Dedicated Team Model, What Will That Be?

A dedicated team focuses on one project. It considerably speeds up development and streamlines the result without compromising quality. Immersing in the project, the team goes deep into the intricacies of your business and gets familiar with your corporate culture, values, practices, management style, and policies. This holistic approach allows a dedicated team to generate ideas that will give your business a competitive edge.

Why Do You Need a Dedicated Software Development Team?

Access to a pool of skilled resources

The technology stack capabilities of an in-house software development team are limited by the number of people that have been hired. The need for more technological capabilities raises the necessity to hire new talent. This is often easier said than done. Going through the entire recruitment process, shortlisting candidates, interviewing them, and finally having them join the team wastes valuable time that could have been spent on improving the technology stack. In general, full-time employees place more strain on the finances of your company. This can be mitigated by hiring a dedicated software development team in place.

A dedicated team increases the scalability of your project since you can tell the service provider what resources you need and they can immediately assign people from their extensive pool to your project.


Dedicated developers are paid on the actual number of hours or days that they work on your project, this is a more cost-effective solution. If your project needs change, you can easily scale up or down with considerably less time and financial burden.

Generally, you also have a better idea of how much the resources for a particular project are going to cost you. 

What’s more, no equipment investment is required. If you have a special software development project, you’ll need to provide your in-house team of developers with new equipment. This means that a significant investment would be required even before work on the new project starts. This will not be a concern for you with a dedicated software development team, which is already fully equipped with the right software tools and hardware.

Increased reliability and efficiency

The outsourcing market is highly competitive. So, to retain and attract clients, dedicated team service providers have to offer efficient and reliable service. Even if you have an in-house team, hiring a dedicated external team is reasonable. First of all, you’ll quickly fill the skill gap. Secondly, your in-house team will be able to work on their ongoing tasks without having to juggle them with new projects.

When Do You Need a Dedicated Software Development Team?

How to understand what projects require the assistance of a dedicated team? There are three main reasons to go for this outsourcing model:

Time frames

You have no time to staff your own team.

Budget limitations

If you are a small business or a start-up, you can’t afford to hire in-house developers.

Direct management

You want to get full control over the specialists you hire.

Where to Find and Hire a Dedicated Software Development Team?


The average hourly rate of a software developer in the USA is $150. Let’s make it a benchmark for comparing other hourly rates.

  • Eastern Europe

The region is famous for its professional skills and expertise, and the developers from this region are considered as the most demand on the market. 

The average hourly rate is $35 (ranging from 25 to 40 dollars). 

Countries: Ukraine, Belarus, and Russia (lower costs); Poland, Hungary, Bulgaria, Romania, and the Balkan countries (higher costs).

  • Central, Western, and Northern Europe

Developers from these regions gained their indisputable reputation over the years. However, the huge demand for developers and the high costs of living have caused higher average rates for IT services close to $45-$60 per hour.

Countries: Great Britain, France, Germany, Ireland, Czech Republic, etc.

  • Asia

Sometimes dedicated teams from the Asian region are less qualified than those from Europe. However, the average rate for this region is $25 which is the lowest on the list.

Countries: India and China.

Platforms with Companies’ Ratings

The first thing that comes to mind is just Google. Yet, you might be overwhelmed with results. To narrow down your search, go through:

  • B2B portals like Clutch
  • Freelance platforms like Upwork
  • GitHub or StackOverflow

Any questions? Drop us a line.


Steps to Follow Before Hiring a Dedicated Development Software Team

Do the Market Research

Search for the companies that have the required expertise. Pay attention to the provider’s track record, whether it previously has worked with the clients in your industry and if it has a big enough talent pool to support all of the requirements for your project.

Take a Look at the Provider’s Reviews

The platforms like Clutch and GoodFirms display clients’ reviews. You have to study the customers’ feedback to avoid mistakes. Take into account the verified customers’ feedback.

Study the Portfolio

Every reliable vendor has to have a portfolio of previous works. You can look through the released tech products or projects they are working on at the company’s website. Studying the company’s portfolio, you can find projects similar to yours. It means their expertise is very relevant. Ask them for the details to be sure. 

Protect Your Data

Sign an NDA (Non-disclosure Agreement) before discussing the project. It covers such aspects of the development process as the procedure of data collection, transfer, and access.

What’s more, software development companies should follow the EU General Data Protection Regulation (GDPR).

Check the Company’s Transparency

You can manage the team with the help of a hired project manager or do it yourself. In both cases, you need to use project management tools to make the process transparent. 

Utilizing project management software, you can see the progress. The most popular tools for tracking are:

  • Jira
  • Kantree
  • Trello

Dedicated Team Onboarding Process

When the contract and NDA are signed, it’s time to put into the picture the dedicated team with the help of the onboarding process:

Describe the business context

Explain your strategy, goals, target users, strengths, and weaknesses. Thus you make sure the new team will work keeping an eye on your company’s goal.

Share all the necessary project documentation

Dedicated team members should have access to all the resources they will need to hit the ground running. The backlog, the technical documentation, and the code repository are the most important ones. 

Organize meetings with all the people working on a project

There is less tension and rivalry when people know each other by sight. 

How To Manage a Remote Software Development Dedicated Team

Here are simple tips on how to do that smoothly:

Schedule calls

Gather the team via a call or video conferencing and ask each member:

  • What did you do yesterday/the previous week? What has been done so far?
  • Are there any bottlenecks?
  • What are the plans for tomorrow/next week?

Daily meetings keep everyone up to date.

Establish work procedures

Make sure everyone understands what they are responsible for, how tasks are created, managed, and closed, how files are shared, and who can give a consultation.

Give feedback

The feedback of a product owner is what guides the remote dedicated teams. All questions have to be answered and all issues are covered if you want your product to meet your expectations. 

Use user-friendly tools

Task managementKantree, Jira, Redmine, Twoodo, Wrike, Worksection, Taskworld, TeamGantt, Fusioo, Eylean Board, Trello, Avaza
Document collaboration Google Drive,
Team communicationSkype, Slack, SocialChorus, UberConference, Microsoft Teams, Zoom

What Can Go Wrong with a Dedicated Team?

Pay attention to the following issues you may face when working with a dedicated team.

Communication bottlenecks

There may be language barriers, so working on English skills is essential. 

Failing to maintain a product strategy

The feeling of detachment may result in losing focus. To keep everyone in the loop, it’s important for a product owner or a manager to make sure what the dedicated team is doing aligns with the product strategy.

Trouble staying agile

If you notice that your dedicated team is not adaptable enough to changing requirements, pay attention to giving detailed feedback, and keep calls regular.

Why Hire Dedicated Team at Itexus

Would you like to set up a software development department or get a team extension to your current department? Are you looking for dedicated tech talent beyond your local capabilities and working remotely? Itexus is the perfect solution – a mix of flexibility, scalability, and talent. 

  • Our dedicated software development team is ready for a quick start. Share your requirements and needs to start the process.
  • We have fixed rates for single developers and dedicated teams.
  • Monthly transparent billing based on the logged hours.
  • We sign NDA and provide easily-cancellable contracts at your convenience.
  • Contact us if you have the questions uncovered in this post.
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