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POSTED ON November 7, 2024
Dedicated team vs Project-based outsourcing: Tips to choose
There are many ways to develop software that gets the job done. One of them is to build an in-house team of technology experts. However, having an in-house development team is not always the most viable option. This is because it is a long-term commitment and can be time-consuming and costly. In addition, businesses also spend a lot of time hiring the right talent and putting the right processes in place to retain them. Even if you have an existing core technology team, you may still need external support to speed up the development process or fill in resource gaps.
To save costs, startups and enterprises often choose to outsource their software development services domestically or internationally. There are different software outsourcing models, including dedicated team vs. project-based outsourcing. This article will walk you through these two popular outsourcing models, providing a comparison of Dedicated Team vs Project-based Outsourcing and tips on selecting the best fit for your business requirements.
I. Dedicated team vs Project-based outsourcing: What is it?
1. What is a dedicated development team?
In the Dedicated Team vs Project-based Outsourcing decision-making process, the dedicated team model is a software development outsourcing practice in which a client company hires a software development partner to provide a complete team of developers who can work on a specific project. In this model, the client and the software development partner share some risk and responsibility for the project’s success.
A dedicated development team can include software engineers, quality resources, DevOps, team leaders, POs, etc.
2. Example of dedicated development team
You represent a US-based company that is developing a new e-commerce platform. You decided to outsource the software development to a company in Eastern Europe. Your software development partner will assign a dedicated team to work on your project. Typically, these teams are cross-functional. A dedicated team works with your internal software development team and reports to a project manager assigned by the software development company. The project manager works closely with your PM or PO and reports directly to them.
3. What is project-based outsourcing?
When evaluating Dedicated Team vs Project-based Outsourcing, Project-based outsourcing is a software development outsourcing model in which a company partners with a software company to develop a specific software product or feature.
The software development company takes full responsibility for every aspect of the software development process, from requirements gathering, development, and project management to deployment.
4. Example of project-based outsourcing
You are a startup founder who wants to build a mobile app but doesn’t have an in-house engineering team. You partner with a software development company to make the app for you. Your partner company will work with you to gather requirements, design and develop the app, and then deploy the app to the app store.
II. Extensive comparison table of dedicated team vs project-based outsourcing
When comparing Dedicated Team vs Project-based Outsourcing, consider some key elements:
| Elements | Project-based | Dedicated team |
| Scope of work | It’s a model where the project is completed within a set time frame and budget. The client defines the scope of work in advance. | Developers take assignments directly from the project manager as they will be working on-site. |
| Duration | The engagement period is short-term and ends when the project is completed. | Depends on the type of contract. Usually lasts for several months. |
| Type of work | Workplace includes outside the office, at the office of the IT outsourcing service provider. | Work on-site, at the office of corporate clients. |
| Prices | More cost-effective for companies with short-term growth needs. | High costs due to having employees work abroad. |
| Pros | – End-to-end project development process. – In-house experts like programmers, project managers, QA experts, designers, marketers, etc., are usually available immediately. – Affordable development costs, depending on the software outsourcing country one chooses).
| – Complete control over the project and team. – Project priorities can be adjusted at any time. – Easily scalable team size. – Cost savings due to lack of project management process. – Business analysis and quality assurance. |
| Cons | – Restricted control over the project and its team members. – Time Zone Differences. – Language Barrier. | – Time zone differences. – Language barriers.
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| Flexibility and scalability | – Limited flexibility after the project scope is set. – Expanding may involve renegotiating the contract. – Better for well-defined projects and projects with clear endpoints. | – Highly flexible and adaptable to changing requirements. – Can easily scale up or down based on needs. – Ideal for growing or evolving projects.
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| Control management | – Less direct control. – Communication is usually through the project manager. | – High level of control over team and process. – Communication takes place directly with team members. – Requires more involvement from your business.
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| Best suited for | – Projects are well-defined and have a clear scope. – Need for one-time or occasional project development. – Companies that want to outsource the entire project to their IT team. | – Businesses with long-term software development needs. – Projects with changing requirements at any time. – Companies looking to expand and develop their internal capabilities. |
Understanding these distinctions will help companies make a more informed choice between Dedicated Team vs Project-based Outsourcing depending on their project type and goals.
III. How to choose the right models for your business
When deciding on Dedicated Team vs Project-based Outsourcing, consider the specific needs and timeline of your project:
– Project-based outsourcing is ideal for clients who:
- Have small, short-term projects that they want to complete as soon as possible
- Have all project requirements set out in a plan
- Do not need or are unable to track project progress too closely
The dedicated team model is best suited for clients who:
- Are managing large or long-term projects
- Desire the ability to modify project requirements at any time
- Prefer to closely monitor developers and track project progress
- Require flexibility to scale their development teams as needed
IV. Adamo can help you to decide Dedicated Team or Project-based Outsourcing
At Adamo, we make it simple for you to choose between a Dedicated Team vs Project-Based Outsourcing. If you’re looking for flexibility and close collaboration, our Dedicated Team model is a great choice. You’ll have a skilled group working exclusively on your project, allowing you to maintain full control and easily adjust priorities as needed.
On the other hand, if you have a specific project with a clear scope and timeline, our Project-Based Outsourcing service is perfect for you. We’ll handle everything from start to finish, ensuring timely and budget-friendly development. No matter which option you choose, our team is dedicated to finding the best solution that fits your needs!
