How to Hire a Dedicated Software Development Team?

8720 Updated 02.04.2022
Natalia Chabanova

Copywriter at Northell


Table of contents

Today, an increasing number of clients choose to engage with outsourcing agencies that provide a dedicated team of professionals and consistently use this model of cooperation.

Does working with a dedicated team produce the desired results, and why is it so popular? How much does it cost to recruit a dedicated software development team? All of these questions are addressed in our new article.

What is a Dedicated Software Development Team?

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Dedicated Software Development Team

A dedicated software development team is a dedicated team that is recruited to plan, develop, and implement a long-term project that is focused on successfully solving the client’s challenges. 

The client independently determines who the dedicated development team members are, the number of specialists, and their work schedule. Based on these requirements, a team is formed, which is placed at the client’s disposal for a specified period. The work can be managed by the client or by a company representative included in the team.

According to the Dedicated Team model, the main specificity of working is that the client gets at full disposal a dedicated software team with well-functioning mechanisms of interaction and management, which is aimed at productive work.

When do you need to hire a Dedicated Software Development Team?

The best moment for startups and small companies to hire a dedicated software development team is to create an MVP (when the company received investments or raised its own money). They can also hire a dedicated team when they have successfully created an MVP and are ready to scale the product.

If we are talking about a middle-sized business, then there are several options. For example, you have a ready-made product, and you just want to develop and scale it. 

The second option is if you want to change something in your product and develop it. The third option is if you want to refine your product by adding completely new functionality. In all these situations, a dedicated software development team will suit you.

If you are a large company, then you may need a dedicated team to update and move from one tech stack to another. Also, if a company wants to create a product, scale it, and conduct a digital transformation, it can turn to a dedicated software development team.

What are the types of Dedicated Software Development teams?

If we talk about the types of dedicated teams, then we can divide them by the area of their ​​work. As a dedicated team, you can hire:

  • UI/UX designers;
  • Front-end developers;
  • Back-end developers;
  • DevOps engineers;
  • QA specialists;
  • Project managers;
  • some support members.

You can hire either one specialist or a whole dedicated development team that will include specialists from all areas.

What are the pros & cons of a Dedicated Software Development team?

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Dedicated Software Development team

A dedicated software development team is an excellent alternative for businesses of all sizes and sectors. Clients that have used this cooperation model in the past are pleased with the results. The dedicated team’s remarkable efficiency in project execution is attributed to a variety of advantages:

  • the dedicated development team is focused on one project switching between thematic areas is excluded;
  • the ability to select the right specialists quick input and output of dedicated software team members;
  • experience of teamwork stability and delivery of the project on time;
  • the ability to include a manager in the team effective and well-functioning coordination of work.

Before deciding to hire a dedicated software team, it is worth assessing its shortcomings:

  • remote interaction with the team (communication takes place via email, skype, phone);
  • there may be a difference in time zones.

Remote control and communication problems can be solved by including a manager in the dedicated team to monitor and control the development process constantly.

Dedicated Software Development Team: Why Northell is the Best Option?

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Northell Team

Northell team provides exceptional digital product design and custom development services. Our team has already built 150+ digital products for companies from 45 countries.

Northell team has extensive expertise in:

  • Custom Software Development
  • UI/UX Design
  • Web & Mobile App  Development
  • Web & Mobile App Design
  • MVP development
  • SaaS, eCommerce, E-learning platforms Development
  • Enterprise Portals Development 
  • Custom Web App Development for businesses of any size

Our team showed great results and made:

Clutch’s Top 20 Product Designers & Developers and The Manifest’s Top 4 Product Design Team.

We have worked with such well-known brands as Kickstarter, Careem, Government Of Dubai, AWSM Bank

In case you have any product ideas in mind, contact us!

Our dedicated development team will help you deliver your project on time and in the best possible way. You focus on the core business goals and we take care of the rest. 

More about our dedicated team services you can read here: Northell Dedicated Web Developers. 

Industries where we can help   

Northell team has already completed lots of projects for companies from different industries, including SaaS, FinTech, Healthcare, Retail, Education, CRM, etc.

Here is what we can do for each industry:

  • Fintech: personal wallets, banking apps, currency exchanges, wealth management apps, custom self-service portals, ERP software, etc.
  • SaaS: MVP, business automation tools, project management softwares, email marketing softwares, etc.
  • Education: e-learning platform, e-learning marketplace, LMS, K-12 LMS, learning experience platform, etc.
  • CRM: operational, analytical, project management, campaign management, sales/marketing, etc.
  • Marketplace: online marketplaces, B2B, B2C, P2P marketplaces, online storefronts, etc.
  • Healthcare: hospital management systems, tender platforms, IoT softwares, information portals, recertification and training portals, etc.
  • Real Estate: property value and investment estimators, apartment listing aggregators, apartment-finder apps, online real estate auctions, etc.
  • Social Network: interaction and communication apps, social networks for a particular target audience, interest-based platforms, blogging and publishing platforms, etc.

Who are the members of the Dedicated Software Development Team?


When companies choose the dedicated development team model, they are assigned a team of specialists who have been precisely selected to meet the needs of a certain project. 

This dedicated development team becomes a natural extension of your internal team, and collaboration works best when you see and treat them as your company’s remote employees.

A dedicated software development team may include the following members:

  • Project managers
  • UX/UI designers
  • DevOps
  • Business analysts
  • front-end engineers
  • back-end engineers
  • quality assurance engineers and others

When you work with a dedicated software development team, you have a group of IT experts and dedicated team developers that are completely focused on your product. The outsourcing vendor is in charge of acquiring new professionals as well as providing administrative assistance to the dedicated development team.

Dedicated Software Development Vs. In-House team

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Even without considering the Covid-19 pandemic, businesses all over the world have pondered shifting to remote working. According to Statista, the global market for IT outsourcing was valued at $92.5 billion in 2019 and is continuously growing. 

Furthermore, according to Smallbizgenius, 78% who outsource are satisfied with the results, and 65% intend to enhance their outsourcing activities and hire dedicated team developers instead of forming in-house teams.

What is better to choose for your project? An in-house team or dedicated software development team? We will suggest that you consider the pros and cons of these two options. 

Each tool has pros and cons. If you keep this statement in mind, you can find the most appropriate tool for solving the problem, take maximum advantage of the pros and work around its cons.

In-house specialists are people who work in the company’s staff. This type of cooperation, like any instrument, has its own peculiarities.

Here are some pros and cons of in-house teams:


  • Deep immersion in the project and attention to every detail
  • The ability to nurture a specialist within the company
  • Fast communication
  • Saving resources (for large projects)


  • Complex HR issues
  • More complicated accounting
  • Higher operating costs
  • Lack of necessary expertise
  • High costs of salaries for specialists
  • Potential employee compatibility issues
  • Long organization of the work process “from scratch”

Now let’s look at the pros and cons of a dedicated software development team:


  • Significantly lower operating costs
  • Huge talent pool
  • No problems with recruiting; the dedicated software team is already formed
  • No salary costs
  • No taxes
  • Cost
  • No need to train employees
  • The work will begin from the first day – all dedicated team developers are ready, and the processes are established


  • There is no way to interfere with established processes
  • Possible problems with communication and time difference

As comparison and practice show, more and more companies choose dedicated software teams for their projects.

What are the best countries for hiring a Dedicated team?

Team Developing a Business Strategy

The modern infrastructure allows us to hire a software development team all over the world. According to various sources, Ukraine in Eastern Europe, Poland in Central Europe, Argentina in South America, and India in Asia are the main outsourcing countries with lots of experienced dedicated team developers.

The Ukrainian government places great emphasis on education, which fuels a thriving technology industry. According to statistical analysis from HackerRank, Ukrainian developers have an average score of 88.7% on all tests. Ukraine also has the most significant number of C++ developers in the world.

English is not widely spoken in the general population, but 80% of the IT community speaks English, so communication barriers are minimal. Other advantages of outsourcing a dedicated software team in Ukraine: a time zone that partially overlaps with the US and the UK zones, a similar work culture in which competitive factors and competition are valued. Also, in Ukraine, there is a perfect correspondence of the price to quality.

Dedicated Software Development Team: Models of cooperation


In general, there are three models of cooperation with a dedicated software development team:

  • Full-service
  • On-demand
  • Maintenance

Let’s take a closer look at each.


According to this model, your company gets a dedicated development team that will provide you with all the services you need: analysis, management, design, development, etc.

You will not have to look for additional specialists. The dedicated team will include all the specialists and experts you need for your project.


According to this model, you can hire a separate specialist or specialists for specific tasks. Let’s say you only need to create a design for your application. Then an on-demand dedicated team is what you need.


The dedicated maintenance team is a stand-alone sprint team. Each team has a project manager, lead engineer, front-end and back-end developers, quality analysts and support staff. The goal of this team is to support the product after its initial launch.

Dedicated Software Development Team: How It Works in practise?

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Hiring a dedicated team from strong, dynamically developing IT companies that have successfully completed projects and have proven their competitiveness can be an effective solution for the rapid entry into the market of young enterprises. An experienced dedicated team will help you reach a qualitatively new level and declare yourself ahead of the competition.

How to work with a dedicated software team in practice? Here is a list of steps to go through:

  • Problem analysis. First of all, you should determine why you need a dedicated software development team, what problem you want to solve and what result to get.
  • Describe requirements and create documentation. Everything that you want to get from a dedicated team should be documented so that there will be no problems and misunderstandings in the future.
  • Finding and hiring a team. We will talk about this in more detail later.
  • Establishing workflow and communication. Well-coordinated teamwork is essential, as well as frequent communication so that you can see every progress in your work.

How to Hire a Dedicated Software Development Team?

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Our team has prepared a short step-by-step guide for you to help you hire a software development team.

Step 1. Write your goals, budget and requirements 

Before you hire a software development team:

  • Decide on your ultimate goals.
  • Budget for each of the processes.
  • Describe your requirements.

These steps will help you organize the hiring process and product development process right from the start. When you know exactly what you want to get in the end, you will not have any difficulties with your dedicated team in the future.

Step 2. Choose a Model of cooperation

Next, you should decide on a cooperation model with a dedicated software development team. Earlier, we described what models of cooperation exist and when it is better to choose them. 

Think about whether you need a whole team for a project or several dedicated team developers for specific tasks. If your product is already ready but you need support, then you should consider a dedicated maintenance team.

Step 3. Find and interview potential teams

Now you can start looking for a team. You can find a great dedicated team in several places. You can use social media like LinkedIn to hire a software development team. There you can find companies that provide dedicated software development teams and their representatives. 

By looking at their profiles, you will get information about the team’s experience, dedicated team developers knowledge, what projects the team worked on, what results their clients received, etc.

You can also find a dedicated team on rating sites such as There you can learn more about the projects the team worked on, what problems it solved and read customer reviews. You can also compare companies and teams by their rating, among others.

Another way to hire a software development team is to ask your partners or colleagues. Perhaps they already had a good experience with a dedicated software development team and will be able to advise you on some great dedicated team developers.

Once you have a list of potential teams, you can start interviewing them. Ask as many questions as possible to understand precisely whether this or that team is right for your project.

Step 4. Start your Dedicated Software Development Team

Once you have selected the right dedicated team for your project, you can get started. The first thing you need to coordinate with your dedicated software development team is communication. It should be regular. 

That is necessary to be able to monitor and control the progress of each process. Agree with the team when you get in touch to approve tasks and discuss important issues.

Step 5. Set KPI

One of the important steps is to establish KPIs. Key Performance Indicators allow you to determine how well, quickly and efficiently an employee is performing. The achievement of the company’s goals set for the team depends on these indicators.

It is essential to choose and calculate correctly which KPIs will adequately assess the effectiveness of a particular member of a dedicated team. 

The advantages of the capabilities of the KPI tool for members of a dedicated software development team are obvious you do not need to monitor how the managers work hourly. It is enough to perform the KPI calculation at the beginning of the month and at the end to control the KPI.

Dedicated Software Development Team – Top Hiring Mistakes

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The requirements for candidates to a product team are usually much higher than those for members of component teams or classic project teams. This is because of the level of product responsibility. The Northell team is ready to share its experience and tell you about the most common mistakes that lead to the hiring of unsuitable candidates.

  1. Relevant experience

Each team member should have relevant experience. This also applies to the developer, designer or manager. A candidate with a few years of experience, but with limited knowledge in your field, might not be the best fit for the team.

However, another requirement would be true for developers, QA engineers, or designers. It is also possible that the candidate has the necessary experience, but uses outdated technology, which is not relevant for a particular product. This also will not play in favor of the product.

  1. Only necessary specialists

In addition, a dedicated software development team should be formed by all the necessary specialists. Delegating responsibilities and combining jobs will only harm the project.

  1. Right organization

Putting together all the skills required to create a product is not enough. There should be good relations between each member and the association must be consistent:

  • Team members share the same vision and have the same goals,

  • The relationship and understanding between each team member is good,

  • Finally, everyone must agree on the organization and role of each in the structure.

  1. Team Communication and Engagement

If you want your team to work in “self-fulfillment” mode, tell them all the details about your product. Explain the importance and purpose of your product and find “common ground” with the team. And don’t forget to communicate with your team in the future. Take time for every situation: do daily meetings, discuss work problems with the team, etc.

  1. The financial issue

Often, companies, for the sake of the economy, hire specialists whose services are the cheapest. But this is fundamentally wrong. Whatever the project, choose the specialists whose skills are optimal for it and meet the salary expectations of the specialist. And always offer the already selected specialists good monetary and socio-labor conditions.

  1. Team isolation

Give your employees the opportunity to communicate freely. Teamwork makes it possible to highlight and develop the qualities of each, compensating for weaknesses. The employee will be effective in their field and will be able to help others progress. In addition, he will be able to improve and learn skills that he lacks.

How to Manage a Dedicated Software Development Team?

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And now that we have already talked about effective management, let’s consider this question point by point.

  1. One software for work and communication

Your team needs software that makes it easy to work together and organize. The software development project management tool allows the team to see how individual tasks fit into the overall project goal.

Managers structure, assign, schedule, and prioritize the individual tasks that make up one project. Simultaneously, team members can use various display filters to view assignments. For example, task managers as Jira or Asana can help your team with such tasks.

Project management software also gives your team an easy way to work together and communicate. Whether team members work in person or remotely, they can monitor conversations and alert each other when tasks are ready for handover.

  1. Practice active communication

While virtual communication is now very convenient, it is not a complete substitute for communicating with your team. Employees expect leaders to show that they are genuinely interested in individual and team well-being.

Weekly one-on-one meetings are often enjoyed by many employees. It’s enough to keep questions and concerns at bay, but not so frequent that they seem like micromanagement. During these sessions, ask questions about individual and group challenges, barriers, and suggestions for improvement. Work as much to build trust as to show empathy and listening.

  1. Clearly state your goals

Make sure your team is aware of your expectations and clearly declare your project goal. All of them should be aligned with your business goals. The target market, expected profits, growth rates, etc. should be understood and taken into account by your development partner. Long- and short-term goals should be clarified to ensure timely launch, sustained growth, and success over time.

  1. Establish a clear organizational structure

Each employee should have clear objectives and a precise method of operation for the job. Leading a team requires organizational competence. To implement operational management, you must first clarify the method and distribution of work.

Understand the organization of each employee in order to coordinate staff through strategic and agile management. It is a good option to direct the weekly work meeting to set clear goals that must be adhered to.

  1. Be aware of workloads

Inappropriate team size for projects is one reason why software development projects fail. When teams are too small, workloads become excessive and engineers become vulnerable to burnout. Adding too many developers to a project wastes resources and increases costs. So ask your team for feedback to see if current workloads and deadlines are realistic. If not, ask for more resources and time to complete projects.

Dedicated Software Development Team: How Much Does it Cost?

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We have already covered all the important issues related to the dedicated software development team. It’s time to find out how much it costs? For your convenience and comparison, we have compiled a table.

Average Hourly Rate
Region Project Manager Designer Frontend Developer Backend Developer
Eastern Europe $20-40/hr $35-60/hr $30-80/hr $40-90/hr
Western Europe $30-70/hr $45-100/hr $55-100/hr $65-105/hr
South America <40/hr <$45/hr $25-55/hr $35-65/hr
Asia <35/hr <$40/hr <$45/hr <$55/hr

Dedicated Software Development Team: Summary


Dedicated Software Development Team

In a crisis, with temporary financial issues or the need for experts for a project, it is far more profitable to engage a software development team on a temporary basis than to create new employment, search for talent, create a new team, and build a positive microclimate inside it. 

Building a team from the ground up delays the beginning of the project and incurs additional financial expenses.

Do you have ideas, and are you ready to hire a dedicated team to implement them? We will do everything for you and help you:

  • form a team and select specialists;
  • competently plan a project;
  • organize effective project management;
  • change the composition of the team in the process.

Are you in doubt if this model is suitable for your project? Contact us, and we will be happy to help you choose a model that will ensure the effective implementation of your project.


How to make a Dedicated Team highly profitable?

To get the maximum benefit and good results from a dedicated team, you need to choose the right country in which the team is located, evaluate the team's skills and experience, as well as the value for money.

What is the best technology stack?

The tech stack is uniquely selected for each project, but we recommend Node.js and React.
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