The COVID-19 pandemic has had an impact on companies across all kinds of sectors and shifted the business world in a variety of different ways. However, there is no doubt that one of its primary effects has been in speeding up technology adoption and making remote work extremely common.

“COVID-19 accelerated technology adoption for both organizations and consumers. This resulted from restricted mobility imposed by local authorities, remote working becoming the norm, and compliance requirements for local organizations.”


As a result, demand for software development services has been steadily rising. Moreover, having discovered that remote collaboration can be highly effective and cost-saving, organizations have become more open to outsourcing IT projects to external partners. In particular, many are eager to hire a dedicated development team to aid with software initiatives.

Despite the growing popularity, some business leaders are still unsure about what a dedicated development team actually entails. Not to worry though, that’s what this article is for.

In today’s post, we’ll discuss the benefits of this type of partnership, the team structure you may expect to see, challenges that may arise along the way, and some practical tips on finding a suitable partner.

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When Should You Hire a Dedicated Software Development Team

When Should You Hire a Dedicated Software Development Team

Companies hire dedicated development teams when they are looking to delegate all of the project’s software-related work to an outside vendor while still retaining control over the deliverables. Typically, this is a great option for long-term initiatives that require specialist expertise and may be quite dynamic in nature.

Naturally, this type of software development outsourcing is very different from hiring in-house experts. It allows you to save costs, get access to talent in far off locations, and so much more. We’ll talk about these specifics later.

A dedicated development team is also distinct from staff augmentation which involves filling the gap in your IT staff resources with concrete specialists you might be missing.

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So, when should you leverage dedicated development team services? Here are a couple of signs:

Think a dedicated development team is exactly what your company is looking for? Or, perhaps, you still have a few concerns and need more information to make your decision. Then, let’s take a look at the advantages of this collaboration model.

Benefits of Hiring a Dedicated Development Team

If you have never outsourced a project before, thinking about it now may be overwhelming. However, it doesn’t have to be the case. The truth is, hiring a dedicated development team offers a variety of benefits, and we’ll discuss four primary ones below.

Cost Efficiency

Cost Efficiency

Cost effectiveness is one of the main advantages when it comes to hiring dedicated development teams. You see, if you were to employ in-house and search for talent locally, finding reasonably priced specialists could be a challenge. Not to mention, HR-related costs would also quickly rack up as you assemble the team.

As such, outsourcing to an experienced vendor usually ends up being less damaging to the company bottom-line. Primarily because these types of organizations specialize in finding and maintaining excellent IT experts and always have them on standby for a new project.

Moreover, given that geographic location isn’t as big a concern — the rates you will be presented with might be a lot more budget-friendly when compared to assembling your own local, in-house team.

Time Saving

Time Saving

Searching for suitable software developers, business analysts, and project managers can take a lot of time. However, businesses often don’t have the luxury of waiting very long when it comes to implementing useful solutions.

With a dedicated development team, you can get started right away since there is no need to look for individual team members. Once you’ve found the right partner, work can begin almost immediately. Thus, saving plenty of time and allowing you to focus on strategic goals that truly matter.



Hiring a dedicated development team lets you retain as much flexibility as you desire. Once the project is done, you can part ways in peace or continue working on another initiative if needed.

Moreover, if you need to scale resources up or down, it can be done seamlessly since vendors tend to have quick access to skilled IT specialists. Given the fast-changing nature of the business world, it’s easy to see why this kind of flexibility can be extremely valuable.

Vast Expertise

Vast Expertise

Lastly, as we’ve briefly mentioned above, a dedicated development team provides you with access to people with a wide range of expertise. Whether you’re looking for Internet of Things specialists or those who can implement AI-powered tools — experienced vendors will have no trouble procuring such talent.

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Dedicated Development Team Structure

Unsurprisingly, the specialists that make up your team will vary depending on the type of project you’re pursuing. For instance, the team structure on a mobile app development project will naturally differ from that of a blockchain implementation initiative.

However, these are the roles you’ll most likely come into contact with:

Take a look at Mobile App Development Team Structure

Challenges of Working with an Outside Team

Although we’ve established clear advantages of hiring a dedicated development team, it’s also important to flag a couple of challenges that you might have to deal with. After all, preparation is key, and it’s best to be aware of any potential nuances that could arise.



Given the typically remote nature of a dedicated development team, a challenge you may face with this type of collaboration is ensuring smooth communication. Since there might be no face-to-face interactions, it’s important to establish how outside team members will communicate with internal stakeholders.

Normally, an experienced vendor will let you know which collaboration software they prefer to use. For project management, it might be a tool like Jira, Trello, or Wrike while for quick messaging they might suggest Slack or Microsoft Teams. Either way, remember to agree on the preferred communication channels and frequency of updates from the start.

Cultural Differences

Cultural Differences

Cultural differences have nothing to do with the expertise and professionalism of your chosen team, but rather refer to subtle nuances in the way of working. This is especially relevant if you’re partnering with a vendor that has specialists all across the world.

For example, some cultures have more of an individualistic, task-oriented working style where personal, friendly relationships aren’t encouraged. At the same time, others might be extremely team-oriented and supportive of informal communication.

So, in order not to be taken aback or face unnecessary friction, it’s good to discuss your company culture and values at the start to make sure everyone is on the same page. That way, the likelihood of substantial issues arising diminishes.

Time Zone Nuances

Time Zone Nuances

Lastly, time zones can put a major dent in your collaboration efforts with a dedicated development team. A large time difference impacts working hours and hence reduces the overlap you may have with the project manager for quick chats. Additionally, public holidays are likely to be separate as well.

So, prior to signing a contract, ask your vendor how they plan to address these time zone issues. Often, a reputable vendor will have people on standby, regardless of time difference and even on public holidays. However, it’s always good to discuss this upfront.

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How to Choose a Dedicated Development Team?

How to Choose a Dedicated Development Team?

Now that you know everything there is to know about dedicated development teams, let’s quickly discuss how you might go about finding one for your next project.

These steps may seem pretty straightforward, but don’t underestimate the importance of taking your time with this process. Of course, you can change software vendors down the road if something doesn’t work out, but that will only delay project completion.

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Get a Dedicated Development Team for Your Next Project

As you can see, there are many things to consider when it comes to outsourcing your software initiative. However, the benefits of hiring a dedicated development team often outweigh some of the potential challenges you may face. Especially if you’ve approached making a partner choice carefully.

If you’ve got an idea for a software project that you’d like to discuss — don’t hesitate to reach out to our team. Velvetech’s specialists have spent years delivering successful software implementation services to organizations from all kinds of industries.

So, if you’re looking for a dedicated development team, simply fill out the contact form below and one of our experts will get back to you shortly.

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