The market for talented IT specialists is higher than ever in today's fast-paced, technology-driven business world. Fast access to the right technological resources will help your organization not only adapt quickly to market trends but also remain on track with key development projects.
However, hiring an in-house development team is expensive and time-consuming. The total cost of hiring a new developer is equivalent to a few months of their salary, that’s why IT outsourcing represents a gateway to success for tech companies.
Let's compare the benefits of both team expansion and dedicated development teams as you decide which solution is the best for your project.
Team Expansion VS Dedicated Team Compared
Team expansion is a form of software development outsourcing service in which a software company sources its experts as external hires.
It helps you save money on recruiting, payroll services, and project management. In comparison to an employment contract, scaling up and down the development team is much simpler with this model. Additionally, this complete shift of responsibility helps you minimize HR and employment formalities and concentrate more on the core business.
A dedicated team model is a form of outsourcing in which you recruit an entire remote extended development team and entrust them with your project. The dedicated team is formed by the outsourcing company of your choosing, but it also includes a Project Manager, reducing the need for hands-on management by the client.
Costs and Responsibilities
The models appear similar at a first glance. However, in the dedicated team model, the development company bears the costs of office repairs, software licensing, hardware purchases, staff training, and so on. He also looks after the developers' motivation and performance.
Even if the product is designed by external staff, in the team expansion model, the client is in charge of project management. On the other hand, an internal project manager is assigned to a dedicated team, which relieves the client of project management duties and assigns the development company with full project management responsibility.
Relationship With the Outsourcing Company
Mutual trust and mutual understanding are a must in every partnership. Companies normally form a long-term and lasting business partnership when they outsource a dedicated development team. A close relationship helps you gain a deeper understanding of your company's real needs and challenges.
The partnership with the IT staffing company is shallower in the staff expansion model, and it is limited to merely having the requisite number of developers.
In the team expansion model, the project kicks off rather quickly. However, there's a chance the client won't be able to correctly identify the candidate profiles, skills, and technical experience required for the project. This may cost the project more time and money.
With the dedicated team development model, the development company is solely responsible for forming a development team for each project, scaling it according to the client's current needs, and ensuring that the development process runs smoothly.
Insights and Knowledge
With staff expansion, software developers may lack knowledge of your organization, programs, and products, as well as previous market experience and industry insights. As a result, you shouldn't expect them to be as engaged or creative as in-house staff.
In comparison, a dedicated team maintains a tight partnership with the software outsourcing company, allowing you to treat your needs in a tailored manner. Also, developers have more chances to dive deeper into your business and learn about your true needs.
What to choose?
Each software development project is one-of-a-kind. As a result, software outsourcing firms have a variety of solutions to meet the needs of various ventures. As a result, you can scale up or down your development team based on your business goals and the needs of your project.