A winning Approach to IT Outsourcing: Dedicated Team Model

12 Oct · 4 min read

A winning Approach to IT Outsourcing: Dedicated Team Model

Every company, whether large or small has to decide between hiring a dedicated team of developers or extending an in-house one. In this reference, we will go over how the remote team works and how to set up your trusted remote development along with giving rise to the winning approach to IT Outsourcing.

Dedicated Development Team or Fixed Cost Contract?

Working with an outsourced software development company can be done in two ways: with a dedicated team or with a fixed-cost contract. Both of them are good but it all depends on the requirement of the customer.

Standard technologies and thorough software specifications are provided for a fixed cost under a fixed-cost contract, ensuring that all requirements are defined before the starting of the project.

The dedicated developer contract allows IT, experts, to work in-house for a long time. As a result, the tasks assigned will impact the final cost of the project.

Outsource companies expand their teams based on clients’ requirements, solving many software development challenges coming along the way. The high ROI and cost-efficiency of this strategy highlight the rising demand for specialized development team services.

 Large and small businesses actively outsource their IT operations which are as follows:

  • Application development
  • Software support
  • Cloud hosting
  • Web operations

Dos and Don’ts of a Dedicated Team

Hiring a dedicated team of software developers can provide significant business benefits. It enables them to reduce development costs and time to market for their product while maintaining complete transparency and real-time communication. However, the Dos and Don'ts of this strategy should be determined for each case individually.

Pricing System

The dedicated model features a transparent pricing scheme that includes a fixed fee paid by the client based on the team's size and composition, expertise, and skillset. Each team member's monthly compensation is included in the pricing, as well as a fee that covers overhead, administrative, and infrastructure costs. The entire cost of the project is determined by the scope of work and the duration of the project.

The concept of  “two-pizza team” is a phrase coined by Jeff Bezos, Founder of Amazon has become a mantra in the IT world saying that  If you can’t feed a team with two pizzas, then it's too large. Bezos’s two-pizza rule works for DevCom.

A successful offshore Two-Pizza Team consists of three key elements which are as follows: 

Developers (Team Lead/Senior/Middle/Junior) – They are responsible for the creation and implementation of the code of the software application.

QA – They are responsible for performing system, functional, data, integration, user acceptance, performance, and regression testing. 

DevOps engineers or DevOps teams- They are meant to collaborate with software developers, system operators, and other IT staff members to manage code releases. 

Depending on your understanding of the development process and your personnel requirements, one is likely to examine the following three possibilities for your outsourced team:

Dedicated Development Stages

We use a customized agile development strategy for DevCom customers that is designed to put the project in control. It reduces risk, improves team transparency, and delivers the reliable performance of the project.

Effective Collaboration

List of things for the dedicated team that will help you get the most out of this collaboration are as follows:

Understanding Software Development Process- It's essential to understand the standard requirements of the customer in the Software Development Process.

Team Bonding- Since efficient communication is the foundation of a successful and profitable product, it's essential to treat and motivate your dedicated developers as they are your in-house teammates.

Protecting Confidential Information- The risks of an outsourcing development may outweigh its potential benefits. Hence, it is essential to keep track of the intellectual property policy and NDA needed before any development work. 

Document the terms and conditions of trade in the contract- It's essential that your dedicated development contract provides you with specific answers to questions like development rates, relevant volume discounts, invoicing, payment methods, credit limits, credit periods, and warranty terms.


It's necessary to pick and choose your dedicated development team, keeping in mind the benefits and drawbacks of a dedicated model for software outsourcing professionals, as well as the factors to consider when selecting reliable offshore developers for your project.

Please feel free to contact the DevCom Customer Success Team for further information and we would be happy to assist you. 

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