Dedicated Development Team in 2025: What It Is and When to Hire

The demand for software engineers is growing eight times faster than for other jobs. As a result, it is very difficult for technology managers to find and hire the skilled people they need.

However, this guide looks into a good solution for this problem. It is called the dedicated development team model.

We will break down what the dedicated development team model is. Then, we will discuss when it is the right choice for your business. 

What is a Dedicated Software Development Team?

A dedicated development team is a partnership model. In this model, a business works with a service company. This dedicated team is set up as a remote team of technical experts.

They carry out their work with the same unity and commitment as your own full-time employees.

As the client, you always keep full control over the strategy. You get to guide the project's direction. You also set the priorities and make important product decisions.

Meanwhile, the service company takes care of all administrative and operational tasks. These tasks are made up of recruitment, HR management, payroll, and benefits. In addition, they supply the needed office space and IT equipment.

Key Roles in a Dedicated Software Development Team

A main strength of the dedicated development team model is its flexibility. Specifically, the team is put together to meet your project's exact needs.

While team setups can differ, a good team is usually made up of a mix of specialists. These specialists cover the whole software development lifecycle (SDLC).

Therefore, knowing these roles helps you figure out the dedicated software development team’s abilities and the value it can bring.

• Project Manager (PM): The PM coordinates the project. They act as the main link between you and the dedicated development team. They lay out tasks and manage schedules, and budgets. They also work to lessen risks. Ultimately, they make certain that all completed work matches your strategic goals.
  
• Business Analyst (BA): The BA is the connection between business needs and technical work. They break down your general requirements. Then, they turn them into detailed instructions that developers can build on. This way, the final product solves the correct business problem.
  
• Developers (Frontend, Backend, Full-Stack, Mobile): These are the engineers who build your product. They write, test, and look after the code. Frontend developers create the part of the software that users interact with. Backend developers manage the server, application, and database. Full-stack developers have skills in both areas. Mobile developers create applications for iOS or Android.
  
• UI/UX Designers: These specialists work on the product's ease of use and its appearance. The UX (User Experience) designer maps out the user's journey to make the application easy to use. The UI (User Interface) designer then creates the visual parts, mockups, and prototypes.
  
• Quality Assurance (QA) Engineers: QA engineers are responsible for quality. They carefully go over the software to find and record errors, performance problems, and other faults. This happens before the product gets to your users. In your dedicated development team, they carry out both manual and automated testing.
  
• DevOps Engineers: DevOps engineers make the development process more efficient through automation. In your dedicated development team, they look after the CI/CD (Continuous Integration/Continuous Delivery) pipelines. As a result, these pipelines speed up development. They also help bring about stable and secure software releases.

Engagement Models: Dedicated Software Development Team vs Others

Choosing the correct engagement model is an important decision. It greatly affects your project's final result.

The dedicated software development team model is one of several outsourcing choices. For this reason, it is important to understand how it differs from the two other common models.

These are the Fixed-Price and Time and Material (T&M) models. This knowledge helps you end up with the best choice.

Dedicated Software Development Team vs. Fixed-Price Model

The Fixed-Price model has a set cost for a clearly defined amount of work. It is suitable for small, short-term projects. This is for when requirements are very clear and not expected to change. An example is a simple website or a basic product. Its main weakness, however, is that it is not flexible.

• Any change to the first plan requires you to draw up a new agreement. Consequently, this often causes delays and higher costs.
  
• It does give a predictable budget. On the other hand, service companies often build in extra costs to the price. They do this to lessen their own risk.
  
• In contrast, the dedicated development team model is made for flexibility. It works well for large, complex projects where you expect requirements to change. It gives you the most control and ability to adapt to new market needs.

Dedicated Development Team vs. Time & Material (T&M) Model

In a T&M model, you pay for the actual time developers work on your project. You also pay for the cost of materials. Much like the dedicated model, T&M is flexible. It is a good fit for projects with changing requirements.

• It's often used for tasks that last a short to medium amount of time. Some examples are adding features or carrying out maintenance.
  
• However, the biggest difference is team stability. With T&M, you are not guaranteed to work with the same developers for the whole project. In fact, they can be moved to other projects at any time.
  
• The main value of the dedicated development team model is the promise of a stable and consistent team. This software development team is 100% focused on your project. This supports a deep, long-term partnership rather than a short-term, task-based relationship.

When Should You Hire a Dedicated Development Team?

The dedicated development team model is a useful tool. Its benefits are greatest in certain situations where its strengths match project needs. This model is the best choice in these cases:

• For Long-Term and Complex Projects: This is the ideal situation. The model is designed for large projects that need continuous development for months or even years. Some examples are SaaS platforms or large business systems. The team's stability helps it build up deep knowledge about the project. Over time, this makes the team more efficient.
  
• When Project Requirements Change Often: This model is good for new kinds of projects. For these, the scope may not be fully known or is likely to change. Here, the model's flexibility is a major benefit. The dedicated development team can change direction and adapt to new user comments or market changes. Best of all, it does this without the strict contract limits you would run into with a fixed-price model.
  
• For Startups Growing Quickly: This model can speed up growth for startups. It gives them quick access to a full, dedicated development team. This avoids the time and money taken up by hiring people directly. This allows them to build, launch, and improve their product quickly.
  
• To Fill In-House Skill Gaps: Today, it can be hard to find specialists in fields like AI or blockchain. Instead, a dedicated development team gives direct access to a worldwide group of checked experts. This is a major reason why 46% of businesses choose to outsource.
  
• To Keep Attention on Core Business Work: You can hand over technical development to a dedicated team. By doing this, your company's leaders can put their attention on important activities. These include business strategy, sales, and marketing. At the same time, the service company takes care of all the details of talent management.

When NOT to Choose a Dedicated Team Model

It is important to know when to use the dedicated team model. It is also important to know when it is not a good choice. Using this model for the wrong project can cause waste and extra costs. You should think about a different model in these cases:

• For Short-Term, Well-Defined Projects: Your project may last less than three to six months. It might also have a set, clear scope. If so, the setup costs of a dedicated development team is not worthwhile. Instead, a Fixed-Price model is much more efficient here.
  
• When You Have a Strict, Limited Budget: Your project may have a strict, unchangeable budget. The regular monthly cost of a dedicated team can bring about financial risk. For that reason, a Fixed-Price model gives the budget certainty that these projects need.
  
• When You Want Little Personal Involvement: The dedicated development team model requires a lot of teamwork. It also needs constant participation from you, the client. If you would rather not be heavily involved, this model will probably not work out. In short, it would fail from a lack of direction.
  
• When You Only Need a Few People: This model gives you a full team with varied functions. If you only need to add one or two developers to your current team, a different method is better. For example, Staff Augmentation is more sensible and costs less in this case. A large hidden cost is the client's own management time. You must factor this into any calculation of the total cost.

Benefits of Hiring a Dedicated Development Team

Using a dedicated development team is a strategic choice. It produces several kinds of returns. It affects your finances, innovation, and ability to react to the market. The main benefits include:

• Cost-Effectiveness: This method is cost-effective. A major benefit is large cost savings. These savings are often between 40-60% compared to building a team in-house. This is because you do away with extra costs like hiring, office space, hardware, and benefits. The service company looks after these.
  
• Access to a Global Talent Pool: Many tech managers have difficulty finding skilled people. This model gives immediate access to checked, highly skilled experts from all over the world. This means you can take on advanced projects. These projects need special skills you may not find nearby.
  
• Faster Time-to-Market: The model greatly speeds up product development. A full team can be put together in only 2 to 6 weeks. This helps you get around long internal hiring processes. The team zeros in on your project. As a result, this removes delays and leads to more efficient development work.
  
• Scalability and Flexibility: Business needs change. This model lets you easily grow or shrink your team size. You can do this based on project stages or market needs. Ultimately, this gives you a flexible use of resources. This is something that is hard and expensive to get with permanent staff.
  
• Better Attention and Productivity: The team gives its full attention to your project. This creates a deep involvement in the work. All this leads to higher productivity. It also results in better code quality and a deeper understanding of your product's goals. This is different from teams that have to deal with several projects at once.

Costs of Hiring a Dedicated Development Team

The chance for savings is large. However, it is important to have a real understanding of the costs. To start, the price of a dedicated team depends on a few main factors:

• Geographic Location: This is the largest factor affecting cost. Developer pay rates are very different around the world. For instance, developers in North America average $80 to $200 or more per hour. Rates in Eastern Europe are nearer to $30 to $70. In Asia, they are around $20 to $50.
  
• Team Size and Composition: The monthly cost is directly related to how many specialists are on the team. It also depends on their specific roles. A bigger team with more experienced members will have a higher monthly fee.
  
• Expertise and Experience Level: Senior developers, architects, and experienced project managers earn higher pay. This is compared to less experienced ones. This reflects their advanced skills and efficiency.
  
• Project Complexity and Duration: Projects that need very specialized knowledge will cost more. Examples include AI or blockchain projects. Projects that must follow strict rules will also be more expensive. Some service companies may give discounts for long-term agreements.

The cost is usually a monthly fee for each team member. This fee includes their salary and the service company's charge. That charge covers all administrative costs.

A simple product might cost between $10,000 and $30,000. On the higher end, a complex business product could run from $80,000 to $250,000 or more.

What to Look for in a Dedicated Software Team Partner

Picking the right service company is the most important factor for success. A good dedicated software team is a strategic benefit. A bad one, on the other hand, will lead to failure. Therefore, this checklist gives a structure you can go by for a thorough review:

1. Define Your Requirements First: Before you contact service companies, do a complete internal review. Look at your project's scope, goals, technology, and budget. In fact, being clear about these things is the starting point you should go from.
   
2. Research and Shortlist Companies: Use well-known review websites like Clutch and GoodFirms to find potential partners. These sites have checked client reviews. Moreover, the reviews give unbiased information you can use to find out about a company's dependability.
   
3. Check Technical Expertise: Examine their past work. Look for projects that are like yours in size and difficulty. Judge their experience with your industry and technology. You could even think about setting up a small, paid test project. This would confirm their actual skills.
   
4. Assess Communication and Cultural Fit: This is very important for a remote partnership. Check your dedicated software team’s communication style and how quickly they respond. Also, check their ability in spoken English. Make certain their work culture works well with yours. You can do this through video calls with possible team members.
   
5. Verify Processes and Scalability: Ask about their project management method, such as Agile or Scrum. Confirm they have enough skilled people available to grow your team when needed.
   
6. Perform Legal and Security Checks: Make certain the service company has strong data security rules. Your dedicated software team should be willing to sign a detailed non-disclosure agreement to protect your ideas. Finally, have a lawyer look over the final contract to safeguard your interests.

Real-World Success: How Entrans Helped a Client Scale Fast

To see the tangible impact of this model, consider the story of a leading North American logistics company that partnered with Entrans to drive innovation.

• The client embarked on an ambitious project to build its next-generation software, a core component of which was a new customer support portal.
  
• The project was on a strict deadline, and the company lacked the specific in-house expertise to execute its vision. They needed a true partner—a team that was creative, flexible, and disciplined.
  
• After a rigorous evaluation of nearly ten different vendors, the client chose Entrans to provide a dedicated development team. Entrans assembled a team perfectly tailored to the project's needs, tasked with building the new portal from the ground up.
  
• The partnership yielded remarkable results. The dedicated team delivered the state-of-the-art portal on schedule, demonstrating incredible commitment.
  
• The client’s product manager noted that the team felt like a seamless extension of their own, highlighting the deep cultural integration that was achieved. 

Ready to Build Your Dedicated Software Development Team?

Using a dedicated development team is a big strategic decision. It helps with the challenges of fast innovation and a shortage of skilled people.

Entrans has worked in the tech space with Fortune 500 companies in launching scalable AI solutions for years (including our own AI agent Thunai AI). With a certified AWS, Azure, and Google Cloud professional for cloud and data engineering.

With experience with Python, .Net, Splunk, MongoDB, and over 40+ other ecosystems and languages, we’ll speed up your time to market.

Let’s chat about how Entrans can find the right dedicated software development team for you - speak with the Entrans team today! 

When you hire a team of developers through Entrans, you get access to a dedicated remote development team with proven expertise and reliable support systems.

FAQs for Dedicated Development Teams

What is a dedicated development team?

A dedicated development team is a business partnership model. A company hires a full, remote team of technology experts from a service company. This team is usually made up of developers, project managers, QA engineers, and designers. It works only for a single client on a long-term basis. In this way, the team acts as a connected part of the client's own staff. The service company, meanwhile, takes care of all administrative and HR duties.

What is the difference between an extended team and a dedicated development team?

The terms are sometimes mixed up, but the key difference is strategic. A dedicated team is usually a complete unit. It is put together to take responsibility for a whole project or product. In contrast, an extended team is about adding to an existing in-house team. It does this by filling in for specific skill gaps. For example, you might hire two senior developers. They would work with your current employees on a project that your company still manages. The main difference comes down to the scope of work and who has ownership.

What is the difference between a dedicated development team and staff augmentation?

This distinction is very similar to the one above. Staff augmentation is a method for short-term needs. In it, a company hires individual temporary workers to fill certain roles. The client has to manage these individuals directly. A dedicated team, on the other hand, is a more strategic, long-term commitment. You are hiring a complete, pre-formed team. That team often includes its own project management structure. The service partner then handles team-level logistics. The key differences are the level of partner involvement and the idea of hiring a full, managed team versus individual staff.