Guide to Hiring a Dedicated Development Team

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01 Mar 2018
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6 min
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Vitaly K.
Copywriter

It’s extremely hard to find the right tech talents in terms of ever-rising demand on IT services. (Especially if you’re limited in time and money). A dedicated team of software devs may be your way out of this situation.

Many software development vendors can offer you to hire a development team from the staff. No need in countless interviews and long onboarding. You save a lot of time.

Another reason to hire a team of developers is adherence to budget. No expenses on rental, taxes, software, and hardware. Besides, you pay only when you have tasks to assign.

There are two scenarios to hire a dedicated team. Let’s first take a look at them and consider their peculiarities.

Scenario #1. Dedicated Team Model to Build a Product

This scenario is a fit if you’re a company with zero to several tech specialists (e.g. CTO, project manager) and you need a team to build something from scratch.

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Note: Dedicated team model typically doesn’t provide for Project Manager. So if you have no tech employees in your company, you should be tech-savvy enough to handle the management. Otherwise, notify the vendor that you need a PM to manage developers’ work.

You can look for vendors providing software development services on:

Points to Consider

If idea protection is your priority, you need to ask a chosen vendor whether they sign an NDA agreement.

Discuss this point with company representatives prior to sending them any project-related information. Most vendors sign NDA agreements, so you should have no problems with this.

Another point to consider is awareness. You or your tech representative has to inform the vendor/dedicated software development team about project’s tech peculiarities and timeframes.

What do I mean? You should notify the chosen vendor if the project requires using a specific programming language, library or whatever. Otherwise, misunderstandings and delays may occur.

Project Estimation Process

Most vendors offer to estimate time and cost required to build the project. Every company has different approaches to this process. Underneath, I’ve clarified how we do it at Cleveroad.

Based on the project details, we can provide clients with a rough estimate. It includes the minimum and maximum amount of hours we need to get this work done.

This way, clients can see their approximate expenses. Additionally, we can suggest the appropriate size of a dedicated development team based on the deadline clients expect to fit in.

After all the peculiarities are clarified and both parties agree to continue cooperation — we send a contract and give clients some time to study it.

Once everything is signed, the dedicated engineering team starts working on a project.

Cleveroad takes all responsibilities for team management. Surely, your dedicated software development team will coordinate their work with your tech representative, but we take over the project management itself.

If you have other vision — we’re always open to your suggestions. Just let our managers know about them.

Dedicated development company: Development from scratch

Dedicated development team: How we approach this process at Cleveroad

Scenario #2. Dedicated Team Model to Expand a Product

This scenario implies you already have a product and an in-house team of tech specialists. Though, you need to hire more qualified staff really quick.

The platforms to look for software development vendors stay the same (take a look at Scenario #1).

The main difference between this and the previous scenario is that a dedicated team you hire to work on an existing product may require more technical information. Programmers need to study your product's architecture before they get to work.

For example, at Cleveroad we ask our clients to give developers access to source code. So that they could see the technologies used and understand how it all works.

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This is how we form a software development team to build your products.

In most cases, clients hire from one to several developers for this scenario. This makes it hard for vendors to manage developers’ work without a deep involvement in the project.

That’s why management fully or partially falls on the client’s shoulders. Yet, you can discuss all the conditions of cooperation with your vendor additionally.

Dedicated development company: Ongoing development

Dedicated development team: How we approach this process at Cleveroad

Price and Pricing Models

Before we proceed with models, let’s take a look at average hourly rates by regions.

Hourly rates of employees by region (Source: Accelerance)
Title United States Latin America Eastern Europe (Cleveroad) Asia
Business Analyst $110-$205 $45-$55 $40-$63 $30-$42
Project Manager $198-$292 $60-$72 $50-77 $35-$48
Jr. Developer $105-$111 $55-$66 $45-$70 $35-$48
Mid-level Developer $132-$140 $30-$52 $35-$56 $24-$35
Sr. Developer $154-$163 $45-$55 $45-$70 $30-$42
Junior QA $77-$81 $30-$39 $25-$42 $15-$24
Mid-level QA $99-$105 $35-$44 $30-$49 $20-$30
Senior QA $143-$169 $40-$50 $40-$63 $25-$36

Vendors usually provide clients with several pricing models. This gives our customers the opportunity to choose the one fitting their needs most of all.

Fixed Price Model

This model implies that you pay the set amount of money for the fixed scope of work.

In other words, you address vendor your problems, they think over how to solve it and provide you with the final project timeline and price.

This way, you don’t put yourself at risk to overpay for extra development hours which may be needed in some cases.

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There are all types of IT outsourcing contracts we work with at Cleveroad

This pricing model is suitable for smaller projects with detailed specification.

This model isn’t a good fit for you if you plan to do A/B testing to see how the market reacts towards different sets of features.

Changes to requirements are possible but they’ll require recalculating the scope of work and some changes to management approach.

So this will influence the time as well as the final price.

Dedicated development team: Price model

Dedicated development team from Ukraine: Fixed price model at Cleveroad

Time & Material Pricing Model

This is a pay-as-you-go model which is a perfect pick for projects without clear requirements.

Usually, it’s applied when a project can’t be estimated in advance for some reasons (e.g. tech complexity). This also means the scope of work can change throughout the development.

The bill is typically sent each week.

Time & Material model allows you to keep control over the processes and test your team’s ability to deliver features fast. Also, you’re totally involved in the work on your product.

Dedicated development team: Price model

Dedicated development team from Ukraine: Time & Material price model at Cleveroad

Why Hire a Dedicated Team at Cleveroad?

  • Dynamic change of plans
  • No recruiting, administrative, and training expenses
  • Extensive experience in offshore and nearshore development for startups and enterprises
  • Flexible and adaptive way of communication that meets your requirements

Let’s talk? Fill in this short contact form and we’ll get back to you and answer all the questions you have.

Before you go… You can also watch our video about the cost of software development services in Europe.

The Cost of Software Development in Europe

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