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92% of G2000 Companies Hire Dedicated Development Teams

Discover why dedicated development teams are a game-changer for businesses. Learn the benefits, location costs, and how it compares to in-house teams.

Scrums.com Team
March 5, 2025
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Introduction

These days, companies are increasingly using specialized development teams to satisfy their changing software requirements. According to data, 37% of small businesses and 92% of the top global 2000 enterprises outsource their work to outside vendors. The demand for cost-effectiveness, flexibility, and access to worldwide talent is what is causing this rise in popularity. However, what precisely makes specialized software development services the preferred option for businesses of all kinds? This post will discuss the benefits and drawbacks of dedicated development teams, as well as if this model is the best fit for your company.

The advantages, difficulties, and financial aspects of specialized software development services will all be covered in this essay. By the end, you’ll have a clearer understanding of whether a dedicated development team is the right solution for your business.

Dedicated Software Development: How It Works

A dedicated development team is a group of professionals who are carefully chosen and managed to work on your project, often remotely. This methodology differs from traditional outsourcing in that the team works exclusively on your project, which fits with your company's objectives and culture.

In essence, software development companies allow you to scale up or down according to your needs. You have complete control over the team's daily operations, development cycles, and milestones without having to deal with the hassle of managing individual hires or enduring protracted hiring procedures.

Developers with specialized knowledge of specific technologies and methodologies typically comprise dedicated teams, ensuring superior outcomes and efficient problem-solving. Engineers, project managers, and quality assurance specialists are among the team members who have been carefully selected to meet the particular needs of your company.

Advantages and Disadvantages of a Dedicated Development Team

Benefits of a dedicated development team:
  • Flexibility and Scalability
    Without the limitations of an internal employment procedure, your committed team may swiftly grow to meet new needs, add new features, or handle increased workloads as your project develops.
  • Cost-Effectiveness
    Businesses can acquire top-notch developers for a fraction of the price of North America or Western Europe by outsourcing to places like Africa, Latin America, or Central and Eastern Europe.
  • Access to Global Talent
    The skill pool in your area is not your only option. Talent in software development is abundant in nations like Brazil, Nigeria, and Poland, and they contribute a variety of skill sets, novel concepts, and creative solutions.
  • Focus on Core Business
    By letting a software development company handle the technical side, you can focus on the core areas of your business, such as marketing, sales, or customer service, while the development team works seamlessly in the background.
Disadvantages:
  • Barriers to Communication

Despite the growing popularity of remote work, communication problems, such as delays or misunderstandings, can arise when a team is spread across several time zones or locations.

  • Cultural Disparities

Location-specific cultural peculiarities and unique work practices might affect collaboration and overall project execution. Potential conflict can be decreased by early recognition of these differences.

  • Restricted Authority

You may still have less control over the team's direction than you would with an internal team. This can be reduced with effective project management software and regular communication.

Dedicated Development Team vs. An In-House Team: Key Differences

When comparing a dedicated development team with an in-house team, several key differences stand out:

  • Cost: Hiring an internal staff usually entails additional overhead costs, including office space, supplies, perks, and hiring fees. However, outsourcing to a dedicated crew can lower these expenses.
  • Expertise: In-house teams are typically generalists who work on multiple projects, whereas specialist teams concentrate on certain technologies or procedures that are suitable for the needs of your project.
  • Flexibility: A specialized team can adjust team size and expertise in response to changing demands, something that an internal team cannot match.
  • Time to Market: Although it may take weeks or even months to hire and train internal people, once they are onboarded, you can begin working with a dedicated team immediately.

Dedicated Software Development: Cost

Cost is one of the most critical considerations when choosing a software development company. The price of hiring a dedicated development team can vary greatly depending on the region.

  • Latin America: Nations with nearshore advantages, such as comparable time zones and fewer language obstacles, such as Argentina and Mexico, provide competitive prices. Although prices may be a little higher than in other areas, American businesses frequently find it to be a desirable alternative due to its closeness to the U.S. market.
  • Central and Eastern Europe (CEE): Countries like Poland, Romania, and Ukraine are known for their excellent developers and, in comparison to Western Europe, their relatively lower prices. Even though the prices are lower here than in the US and Western Europe, the time zone difference with North America or Asia can be a disadvantage for real-time communication.
  • Africa: Outsourcing is becoming more inexpensive in African nations, including South Africa, Kenya, and Nigeria. Because average development rates are lower than in Eastern Europe, businesses can engage highly skilled developers for a fraction of the price. Additionally, many African countries have strong IT ecosystems that provide a wonderful talent pool with fresh perspectives.

Choosing the right region depends on your budget, the complexity of your project, and your communication needs.

A Dedicated Development Team: Is It the Right Approach for Your Business?

While dedicated software development services offer significant advantages, they aren’t the best fit for every business. Here are some factors to consider:

  • Project Size & Scope: If your project requires ongoing, long-term development with shifting requirements, a dedicated team is a great choice. However, hiring a freelance or temporary developer could be more cost-effective for one-time or short-term projects.
  • Budget: Startups or companies with limited funds can acquire top talent without using up resources by outsourcing to development teams in economically viable countries, including Africa.
  • Management Capability: A dedicated team needs some level of managerial oversight. If you need help with coordination or are not prepared to manage the team remotely, think about working with a software development business that offers project management services.
  • Control and Flexibility: If you need a highly flexible solution that can expand your project, a dedicated staff allows you the flexibility to make the necessary adjustments.

Conclusion

Selecting a committed development team has several benefits, including financial savings, adaptability, and prompt delivery of excellent results. If your business is ready to expand, gain access to top talent, and focus on its core strengths, this model might be the ideal choice for you.

At Scrums.com, we specialize in building dedicated, specialized teams that fulfill the technical requirements and project goals. Our team ensures superior quality while seamlessly integrating with your workflow and offering the adaptability to grow as required. Contact us immediately to see how we can support the success of your upcoming endeavor!

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