Technology has become the center point of many industries. Every business owner is striving to beat the competitive market and remain on top of the game. This has increased the demand for tech experts. Business owners are now hiring tech gurus to scale their businesses to the next level by developing or upgrading their operations and products.

While the economic times are tough, entrepreneurs can’t overlook the need to onboard experts to elevate their companies. Tech experts, on the other hand, are striving to put in place measures to promote quality service delivery within a reasonable budget.

One challenge, however, is the limited local talent. It can be a hard task to find experts who can deliver top-notch services within a tight timeline and within a reasonable budget. This affects the time to market, especially with the introduction of new products. As a result, the business venture can flop and lead to poor ROI. No entrepreneur deserves this, and that is why we have a dedicated team solution. This guide explores everything you need to hear about the dedicated team hiring model.

What is the dedicated team model?

A dedicated team is the hiring model where the service provider and the business owner or the client agree under specific terms and conditions to collaborate together while working on a specific project. This model is the best option when a client has long-term service requirements.

The selection of a dedicated team relies heavily on the skillset and experience of the required experts. The expertise must align with the client’s business goals and objectives.

Depending on the dynamic of the business, the client can decide to manage the communication and collaboration processes on their side or give the dedicated team the mandate to handle all the processes. The dedicated team executes all the processes from their offices and not the client’s office.

One admirable element of a dedicated team is the transparency and openness in pricing. The payments include the team’s salaries and other administrative overhead costs. Of course, the amount spent depends on the size of the team.

Market Size and Growth Projection

Global IT Outsourcing Market: Overview

The global IT outsourcing market has reached an impressive size of $565.6 billion in 2024, according to combined data from Statista and Grand View Research. This figure represents the total value of outsourced IT services, including managed services, software development, and application support across geographies.

Growth Outlook (2025–2030)

The market is projected to grow at a compound annual growth rate (CAGR) of 8.1% between 2025 and 2030, driven by digital transformation initiatives, increased remote collaboration maturity, and a widening global talent gap (Source: Gartner, Deloitte).

Dedicated Teams Within the IT Outsourcing Landscape

While exact segmentation varies by analyst, Dedicated Development Teams (DDTs) are estimated to account for approximately 18–22% of the custom software outsourcing segment. This model is particularly dominant in projects involving long-term product ownership and agile development, as opposed to fixed-cost or time-and-material contracts used for short-term delivery.

Top Industries Adopting DDT

• FinTech: Demand for scalable, compliant development
  
• HealthTech: Need for HIPAA/GDPR-compliant development teams
  
• SaaS Platforms: Continuous product iteration and DevOps maturity
• eCommerce: Custom integrations, headless commerce, and UX optimization

Dedicated team structure

A dedicated team is made up of experts depending on several factors, including the development strategy, management model, tech stack, scope, phase or stage of the project, and complexity of the project.

Of course, a long-term project will require a dedicated team of experts with different skills to execute specific roles and tasks.

Nonetheless, a dedicated team model includes the following roles with respective specialists:

• Infrastructure – DevOps engineer
• Business – UX experts and business analyst
• Big data – data scientist & data engineer
• Design – product designer and UX/UI designer
• Engineering – full stack, backend, and frontend engineers
• Management – product owner, scrum master, & project manager
• Quality assurance – QA engineers for manual and automated QA testing
• Architecture – tech lead, lead engineer, and software architect.

Top benefits of a dedicated team model

Dedicate team has a lot to offer, both to the clients and the service providers. So, why should one opt for a dedicated team model of hiring? Below are the top benefits or advantages of a dedicated team.

• Access to top talents

You will get experts for your project; this is no doubt. Whether you are looking for a DevOps team, sourcing for blockchain development, data science, or any other project requirements, going for the dedicated team will always guarantee you top talents in the industry.

This is made possible because clients are no longer limited to local talents. By exploring other global talents, you get to interact with experts who have advanced knowledge, skills, and experience in a specific field. As a result, you get high-quality services that will maximize ROI and expand your business significantly.

• Transparent pricing model

No client wants to experience hidden charges once the project is on. This can compromise the overall project’s progress and interfere with all the business plans.

With a dedicated team model, you don’t need to worry about payment issues. Once both teams agree, that is it, be it a monthly fee, the costs will always be the same. Again, the pricing incurred depend on the complexity of the project, the tech stack required, and the type and number of teams. This means you spend on services that will add value to your business without draining your wallet.

• Reliable project management

No client wants complications or misinterpretations during the progress of the project. Especially if the company lacks tech expertise and an IT project management team, it becomes hard to track and manage every step of the project’s progress.

Dedicate team offers a room to manage the project seamlessly. The service provider can set up a full-stack development team and oversee every single step, ensuring the teams use the right tools, technologies, practices, and any other element that will enhance the success of the project.

• Strong focus

Every client wants a team that takes full charge of their project. Especially for long-term projects, focus is a key aspect one cannot overlook. The dedicated team model is fully dedicated to speeding up and delivering high-quality products and services in the end.

In fact, the dedicated team model will take time to evaluate and understand your business dynamics, including the target market, domain, best tech practices, and competitors. These insights enable the team to tailor your products and services that will accelerate your business growth.

• Customized process and communication standards

We’ve mentioned that the dedicated team model focuses on your business and what you want to achieve. Of course, you will find the best team for your project. Such a team has adequate experience in the industry and understands perfectly what fits your business better.

Having worked with other clients before, the dedicated teams understand the ins & outs of the industry, and they can tailor the processes and communication processes to align with your schedule and business needs.

Again, the dedicated team handles the major parts of the communication requirements. As a result, you may simply need to deal with the project manager most of the time, a move that eliminates inconsistency and misunderstandings in communication, a reason why most companies will prefer a dedicated team model.

Challenges of a dedicated team model

While a dedicated team has a lot to offer, it has a set of challenges that could hinder the seamless progress of the project. Below are the top cons of dedicated teams:

• Not fit for Short-Term Projects

A dedicated team, as the name suggests, is all about onboarding an entire team and not a specific specialist. This makes it uneconomical to keep such a large team for a shorter project and a shorter timeline.

Again, the process of onboarding a dedicated team requires you to spend some time hiring, and through the processes, you may need to spend some resources.

Again, the dedicated teams may be hesitant to engage in a shorter timeline project since it isn’t practical on their side.

• Possible Compliance Risks

Some industries have strict guidelines and regulations to follow. A simple data breach or any other form of threat can impact the entire business negatively. For Finance and healthcare industries, for instance, are among the industries with tight and strict security measures.

You can easily find top talents in a specific industry, yes, but what about security measures? Does the team understand the best practices and guidelines to follow for specific projects?

That is why before you engage a dedicated model, always go a step further and ask them how they handle data, security measures, and government compliance regulations to avoid risks later on.

• It is hard to find the right team

Given the fact that there are many dedicated teams, it can be quite a hassle getting the right team for your project.

In fact, the developed countries’ outsourcing industry is saturated, and the teams are on the move to offer competitive services. Determining the right team with the right skill set and expertise will require you to invest your time and resources to enhance the success of the process.

• Difficulty work-communication

Sometimes, you can get the right team with the right expertise, skills, and experience for your project. However, the issue can arise when you realize the dedicated team has its set cultural practices, rules, and guidelines that don’t align with yours. This can affect the completion of your project. That is why it is essential to maintain clear coordination from the very first stages. Stream communication channels and strategies to avoid inconveniences later on.

When should you consider dedicated teams?

So, what are the signs that you need to hire a dedicated team? Below are some of the instances that can make business owners go for a dedicated team model.

• You don’t have enough headcount

Sometimes, you can have several projects that require your attention. Whether it is all about launching new projects or expanding existing projects, you will need expertise to execute the processes.

When you have a limited in-house team, it becomes a tough process for you, and that is where dedicated teams come in.

With dedicated teams, you will bypass the need to spend time and resources searching for different employees to fit in different positions. A dedicated team comes in full charge and fits in the missing gap of expertise for your projects.

• Your in-house team lacks the required skills

What if you have large-scale projects with an extended development life cycle and your in-house teams lack specific skills? That is when you go for a dedicated model. If you want the team to focus on the existing projects or focus on a new project, a dedicated team will come in handy.

• When you want to scale faster

When you aim at faster time to market and gain the market’s competitive advantages, searching and hiring employees can be complex and take a lot of time. Under this scenario, the dedicated team model is the real deal.

Dedicated teams always have experienced experts with different skill sets; hence, they understand the industry better. They will use their experience, skills, and expertise to work on your project promptly, ensuring you achieve your target goals and objectives.

• Your inner staff turnover is high

The demand for expertise in specific industries continues to grow. As a result, you may keep hiring employees, but retaining them for long is the hard part. They keep on leaving for better opportunities. Of course, this will affect your business performance and competency in the market. The good thing is that you can solve this headache by using a dedicated team model.

With a dedicated team, you will never have to worry about replacing specific talents. It is upon the service provider to plan and ensure all the project’s processes are in order with the right professionals handling the project.

• To cut down on expenses

When you feel tired of paying taxes, increased salaries, training expenses, recruitment expenses, and other employee benefits, it is high time you consider a dedicated team model.

With a dedicated model, you have enough time and flexibility to focus on other matters concerning the business instead of worrying about the project’s progress. Besides, you don’t need to spend extra expenses on other requirements such as employee benefits. Your dedicated team takes care of all these.

• No clear project requirements

When you aren’t sure of your project’s needs and requirements and that you can adjust changes as the project proceeds, then go for a dedicated team model.

A dedicated team offers flexibility to implement changes and fill the missing expertise in your in-house team.

How the Dedicated Development Team Model Works

The Dedicated Development Team (DDT) model is a strategic engagement approach where a client hires a remote software development team through a third-party vendor. Unlike project-based outsourcing or time-bound contracts, this model is optimized for long-term collaboration, tight integration with in-house teams, and agile product evolution.

Team Structure and Composition

A DDT is custom-assembled based on the client’s project scope. The vendor matches talent according to the technology stack, domain expertise, and workload.

Common Roles in a DDT Setup

Example: A SaaS product company might hire a 6-member team: 2 frontend developers, 2 backend engineers, 1 QA engineer, and 1 part-time DevOps engineer for a 12-month roadmap.

Workflow and Operational Framework

A DDT functions as an extension of your internal team, following your processes, tools, and product vision. The only difference is geographical location—collaboration remains seamless.

End-to-End Engagement Flow

• Requirement Discovery
  The client defines project scope, required skill sets, desired team size, timeline, and budget. The vendor assesses feasibility and recommends the ideal team structure.
• Candidate Shortlisting
  The vendor selects candidates from its talent pool. The client may interview final selections for skill and culture fit.
• Contract & Kickoff
  Once legal agreements are signed (NDA, IP clauses), onboarding begins. Team members gain access to repositories, documentation, and tools.
• Development and Delivery
  Agile methodologies like Scrum or Kanban are typically followed. Daily syncs, sprint planning, and continuous delivery ensure consistent progress and transparency.

Real-World Analogy: Think of a DDT as hiring an offshore branch of your internal team, with direct Slack access and full GitHub visibility—but without the HR overhead.

Agile Integration

Dedicated teams are designed to integrate seamlessly into agile development cycles.

Common Agile Ceremonies

• Daily Standups: Quick progress and blocker updates via Zoom or Teams.
  
• Sprint Planning: Roadmap breakdown and backlog grooming.
  
• Sprint Reviews: Demo deliverables to stakeholders for feedback.
  
• Retrospectives: Identify inefficiencies and areas of improvement.
  

Collaboration Tools

Best Practice: Treat your DDT as an internal team. Align them with your product roadmap, workflows, and engineering standards from the start.

Infrastructure and Security Setup

Vendors provide all necessary infrastructure and maintain high security standards to support remote collaboration.

Key Elements

• Secure laptops and network configurations
  
• VPN-based access to internal systems
  
• Role-based access control for tools and platforms
  
• Time tracking and optional screen monitoring
  
• Secure storage, regular backups, and audit trails
  

Compliance Standards

• ISO 27001 for information security
  
• SOC 2 Type II for operational controls
  
• GDPR, HIPAA compliance for sensitive industries
  

Example: A U.S.-based healthcare startup works with a HIPAA-compliant DDT hosted on AWS, with fine-grained access control and encryption at rest.

Cost Structure

The DDT model follows a monthly fixed-cost structure based on the team composition and location.

Source: Accelerance Global Outsourcing Rates Report, 2024

This pricing includes developer salaries, vendor margin, infrastructure, HR support, and benefits.

Legal and Contractual Governance

A properly governed DDT engagement protects your product, intellectual property, and data.

Key Legal Considerations

• IP Ownership: All deliverables belong exclusively to the client.
  
• Non-Disclosure Agreements (NDAs): Required for all team members.
  
• Data Security Compliance: Specific to your industry (e.g., HIPAA for healthcare).
  
• Exit Clauses: Defined notice periods and structured knowledge transfer process.
  
• Jurisdiction: Contracts are often governed under the client’s country law.
  

Dedicated Team vs Other Engagement Models

Read: Fixed Price vs Time and Material

Real-World Examples

• HealthTech Startup
  A U.S. healthcare platform assembled a 5-person DDT from India (2 frontend, 2 backend, 1 QA). In under 8 months, they built and launched a HIPAA-compliant patient portal with telemedicine integration, saving 58% in development costs compared to domestic hiring.
• FinTech SaaS Platform
  A UK-based FinTech company hired a 6-person DDT in Poland to modernize its legacy infrastructure. The team rebuilt the app in microservices architecture and remained engaged for over 18 months, scaling to 12 engineers as product complexity increased.

How to hire dedicated team model

As a business owner who is dedicated to hiring a dedicated team, follow the steps below to ensure you get the right team:

• Discuss your project requirements

Start by exploring what your project requirements are. Share the whole concept and what vision you have for the project. Explain all the dynamics in plain points, enabling a dedicated team to measure the possibility of implementing the project within the required timeline and budget. In fact, go the extra mile and set up a Q & A session and give room to the dedicated team to ask for clarity.

This step is vital as it ensures both the client and the dedicated team are on the same page before moving to the next step.

• Define scope and required resources

Here, you can consult experts at Aalpha Information Systems, especially if you don’t have a detailed understanding of the specific project in terms of risks, limitations, delivery timelines, and resource estimates to ensure the project turns out successfully. This step will help you execute the next step seamlessly.

• Choose the right team

With the right insights about the entire project, you can now choose your dedicated team based on their expertise, skills, and experience in relation to your project requirements. It is now upon the team to plan how to start and accomplish timely delivery of your project.

• Scaling: down or up

Dedicated teams allow flexibility during project development. If there will be changes, you can either scale up or down to fit what the project needs. You can either recruit new members to fill specific gaps, if any, or engage the available team to work on the required changes.

Conclusion

Companies are looking for ways to speed up development processes, penetrate the market seamlessly, and scale their businesses to the next levels. While many companies have already undergone digital transformation, the remaining ones, both startups and established enterprise solutions, are on the same track in adopting digital strategies.

Don’t struggle sourcing for top talents to elevate your business to the next level. The process can be strenuous, resource-draining, and time-consuming, thus affecting the timely delivery of products and services to the market.

Adopt the dedicated team model and enjoy flexibility, scalability, and business growth without worrying about the processes or extra budget.

Want to hire dedicated team? Connect with our web development company in India and get a quotation at no cost!

Also check: Team as a Service |