How to Find a High-Performing Dedicated Development Team?

Nikita Aldakushin

Nikita Aldakushin

Delivery Manager at Andersen

Dedicated Team
Aug 17, 2022
11 minutes to read
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  1. When do you need to hire an external company?
  2. The benefits of partnering with a third-party company
  3. The most frequent fears about collaborating with a third-party company
  4. How to avoid risks when outsourcing?
  5. Choose the engagement model that suits your needs
  6. Calculate the project cost and timelines
  7. Turn to Agile methodology
  8. Seek effective team collaboration based on Scrum
  9. To wrap up

Sooner or later, every fast-scaling company that wants to keep pace with rapidly evolving digital technology needs to implement an IT project without delay. This is when outsourcing comes to the rescue. The last several years with their increasing trend for remote work and economic turmoil have changed employers’ attitudes towards in-house hiring. Today, companies tend to entrust their projects to external vendors. However, while benefiting from cost-effectiveness and access to vast technical expertise, businesses might lose control over the work process. Read on to learn how to avoid pitfalls while collaborating with an IT company and make sure that your dedicated software development team is truly performing.

When do you need to hire an external company?

The rapid advancement of technologies has sparked an IT outsourcing market growth of 13% in 2020-2021, and its revenue is projected to exceed $500 billion by 2025.

Worldwide revenue of IT outsourcing

When does your business need a hand from an external party? Let’s consider each case in detail:

  • You’re looking for an expeditious time to market. Recruiting in-house specialists and bringing them up-to-date requires time, especially if your company doesn’t specialize in technologies. An already assembled team will start delivering within days of agreeing on the terms, and thus, you will get a working product and profit from it faster.

  • Your project needs extensive expertise. Building industry-specific software might require technical knowledge and business expertise. A professional IT company will provide you with niche experts who are otherwise hard to find.

  • You desire to meet critical business needs in a timely manner. When the scope of work is enhanced or unexpected issues arise, entailing the need for more specialists, your team will be promptly strengthened with the needed experts.

  • You require additional resources for scaling up or upgrading your existing solution. When turning to a dedicated software development team, you get access to top-notch experts who have mastered the required technology stack and will in no time upgrade your business-critical systems and scale them in a seamless and efficient fashion.

The benefits of partnering with a third-party company

Turning to an external company has lots of benefits. Below are just some of them:

Vast technical expertise

Professional companies employ high level experts, including Project Managers, Business Analysts, UI/UX designers, developers with knowledge in the most demanded programming languages, QA engineers for manual and automated testing, and more. Thus, your vendor will provide you with certified specialists with a proven track record. Moreover, such companies follow the latest technological trends and consult with their customers on how to effectively apply them to their businesses.

Well-established processes

An experienced vendor has worked on hundreds of projects before and has well-oiled work processes. They know exactly where issues might arise, how to provide precise time and cost estimations, what documents need to be drawn up, and how to ensure effective communication within the Agile development team and with stakeholders using Jira, Confluence, and other tools. Moreover, both parties sign a service level agreement stipulating the scope of work, performance metrics, timelines, payment schedule, penalties, and other details. Thus, you can be certain of transparent and streamlined cooperation.

Cost reduction

According to Deloitte’s survey, cost reduction is the main reason why companies enter into a contract with external vendors. Offshoring means you can choose the best talents from Ukraine, Poland, etc., allowing you to save on recruitment, equipment, and taxes and thus, benefit from high-quality deliverables at low rates.

Time saving

Sharing control over work processes with an Agile Project Manager or a Scrum Master allows you to reap benefits from streamlined communication with the team and well-oiled operations. As you no longer need to closely monitor the team’s performance and be fully informed of all technical peculiarities, you can devote your time to outlining a business strategy, negotiating with investors, conducting market research, promoting your brand, improving customer service, and performing other crucial business activities.

Immediate scaling and strengthening of teams

There are situations when you need to strengthen your team with a skilled designer, developer, Project Manager, or other specialists as soon as possible. Your IT partner will promptly strengthen the team with as many skilled and qualified specialists as needed to avoid work delays without compromising quality.

Focus on delivering value

In the course of work, you might want to modify the product, for example, to add new features to it or integrate it with other systems. A company that adheres to Agile methodology delivers pieces of working functionality after each iteration and thus, can discuss the emerging changes with the customer.

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The most frequent fears about collaborating with a third-party company

In spite of all the advantages, working with an external provider might appear intimidating. Below are the concerns customers have most frequently, which are, however, adroitly managed by experienced vendors:

Concerns related to the possible lack of control over the work

When considering hiring an offshore team, customers are often concerned about losing control over the course of work. They doubt whether entrusting their pet projects to random service providers is reliable as there is a risk that the latter won’t manage the work efficiently. On top of that, customers might be troubled by not being able to properly monitor their team’s performance and thus, ensure that they put heart into their work. Finally, business owners might have a fear that their contractors won’t be able to keep pace with the fast-evolving technology, failing to adapt to the latest trends.

Fortunately, experienced teams with a well-established management process have performance tracking tools in place and regularly update the customer on the work progress providing them with detailed reports. In addition, when customers hire a dedicated development team, the product ownership and strategic management is still under their control; they are involved in decision-making and have all the necessary information about the process.

Concerns regarding inadequate data protection

When working with an external company, you disclose information that might include your employees’ personal data, proprietary information, and so on. Therefore, you can be rightly concerned about data leakage.

This risk is minimal as at the initial stage of their cooperation both parties sign a non-disclosure a