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IT Outstaffing Models. Dedicated Team Model, All You Should Know

Gaining qualified labor resources for a complex IT project may not be easy. That’s when the dedicated team outstaffing model really comes in handy. 

What is the Dedicated Team Model in IT Outstaffing? Overview

It Outstaffing Models: pros & cons

Every startup owner partnering with an outsourcing/outstaffing company knows the score of one or another collaboration type. Outsourcing is really a no-brainer because a hired agency gets the work done without much of the client’s involvement. But smart outstaffing is another breed. 

Hiring an IT outstaffing company’s specialists or even team puts the responsibility on the contractor. Yet, it grants exceptional workflow control options and some flexibility in resource utilization. 

But why would you even need outsourcing or outstaffing service lines? The software development niche is incredibly fast-paced. The growth in revenue from the market is expected to reach as much as $691.35 billion in 2024, which is slightly more than 22% over the last 4 years only. 

Statista Report on Software Development

The tendency shows that enterprises have to keep the tempo with the modern-day environment to stay profitable. Flexibility — exactly what IT outstaffing services bring to any IT project. 

Should you need the work done, contact PM Partners — an IT outstanding services company you may trust the success of your project to. 

What are Outstaffing Models for Cooperation in IT Industry?

IT outstaffing model is the cooperation concept falling under the partnership agreement with a vendor. In a broad sense, outstaffing implies that you hire labor resources from an agency. They work on your projects, along with your in-house team, and under the supervision of your project managers. 

There are three forms of outstaffing services commonly available:

Fixed Price model

It’s the simplest collaboration concept and probably the most efficient for short-term, well-predictable projects. It implies that a client pays a fixed, previously negotiated price that does not change regardless of the time and material spent by a contractor to complete the project. 

Time and Material model

This is a more flexible concept, under which the rough quote for a project is determined, and the pay is delivered as per the milestones approach. The not-to-exceed expense limit is set to prevent the client from excessive expenditures. 

Dedicated Team model

With such a type of IT outstaffing, a client hires a team of qualified specialists with all the consumables and tools required for the work. The contractor is paid as per the rates or salaries of the allocated workers. 

Fixed Price model

It’s the simplest collaboration concept and probably the most efficient for short-term, well-predictable projects. It implies that a client pays a fixed, previously negotiated price that does not change regardless of the time and material spent by a contractor to complete the project. 

Outstaffing development as a service line is what helps to gain well-qualified labor resources quickly and at a lower cost. Quite an appealing option compared to hiring and onboarding an additional in-house worker.   

Outstaffing Dedicated Team Model

Such a form of capacity outstaffing allows you to get a fully-fledged team under the wing of your in-house PM. Hired staff may include as many varying specialists as needed for you to address business goals. Working along with the in-house team, additional specialists under your control can easily become a highly valuable contribution.

The outstaffing process is as simple as:

  • Contacting a vendor
  • Cobbling together a rough quote
  • Selecting specialists for hire
  • Negotiating the contract terms
  • Maintaining control over the dev process through close communication with the dedicated team

The interesting thing about this model is that the vendor plays the role of intermediary, relieving you from the burden of finding specialists yourself. The contractor normally handles the administrative side of outstaffing, such as providing workplaces and tools for workers, etc.

Key Features of Dedicated Team Model

The usability of this outstaffing model goes beyond the simple achievement of dev goals set. Its main advantages include the following:

  • Cost-effectiveness. In fact, overpaying an intermediary who handles administration and recruiting processes is a budget-friendly decision from a long-term perspective.
  • Superior control over the hired labor. Since a dedicated team under your PM is much like your own in-house team, very few workflows and communication issues should be expected.
  • Excellent scalability and flexibility. The best of outstaffing benefits is that it enables you to adjust labor resources to the workload in a cost and time-effective manner. 
  • Industry-leading expertise. If you partner with a reputable outstaffing agency, you will likely have well-seasoned, battle-hardened specialists under the wing. It may notably add to the quality of the end product. 

The dedicated team model is not the most universal approach. But, when you are dealing with crucial projects, opting for this collaboration concept is always the right call. 

What are the Responsibilities of the Contract Sides Within Dedicated Team Model?

Before contacting an IT outstaffing services company, briefly review some important considerations regarding the agreement sides’ responsibilities:

  • The client is responsible for determining the work scope, managing priorities, and communicating with the dedicated team in the prescribed manner.
  • The client is responsible for the quality of the end product or deliverables and the overall project management.
  • The contractor is responsible for providing qualified labor resources and ensuring their continuous work during business hours.
  • Cases, when contractor is responsible for providing detailed reports regarding the time and material expenses and outcomes achieved. 

These are basic expectations that both parties have for each other. Additional terms and conditions may be detailed in the contract or negotiated in oral form. 

When to Stick With Dedicated Team Model?

Not sure when a dedicated team concept is your best choice? Let’s figure it out. 

Applicable When

Here are some cases for which a dedicated team approach is a perfect match:

  • Long-term projects
  • Innovative projects of a high complexity level
  • Projects that scale quickly
  • Work scope changes and shifts in priorities are predicted
  • You need absolute control over the labor resources
  • Budget constraints

Naturally, you need a dedicated team for some large-scale, fully-fledged IT project or to complement your in-house team temporarily or on a long-term basis. 

Not Applicable When

And here is the list of situations that don’t click well with the approach:

  • Small or just short-term projects
  • Side projects you don’t actually want to manage yourself
  • Your business model or your in-house team faces interoperability and cooperation difficulty

Ensure that the hired team will have a chance to make an impact. Don’t fall for side hustles when dealing with dedicated teams. 

Pros and Cons of Outstaffing Dedicated Team Model

Pros and Cons of Outstaffing Dedicated Team Model

Let’s proceed with reviewing the strengths and limitations of the dedicated team outstaffing approach:

Great control over the employees hiredCommunication management may be somewhat complicated
More cost-effective solution compared to hiring in-house workersHired team is not susceptible to team motivation
Flexible teams meet the scalability needs easilyIt may be difficult to build an optimal workflow with a culturally diverse team
Faster time to market for your digital productTime zones may significantly vary, slowing down the workflow somewhat
Priority management is simple

You may regard dedicated teams are high-performance extensions to your in-house labor. If approached wisely, they may give your company a potent productivity boost. 

How PM Partners Can Help?

PM Partners is an IT Outstaffing, Ukraine-based company that serves small startups to large-scale enterprises and constantly delivers exceptional quality development outcomes. We put some huge effort into our workflow managing and talent recruiting process, so you can enjoy these and multiple other benefits from contracting with us:

  • Optimization of costs and no hidden charges included
  • Transparent workflow and regular reporting
  • Extensive IT specialists talent pool
  • Industry-best expertise
  • Comprehensive tech stack in use
  • Quick, simple, and reliable hiring process

Here at PM Partners, we believe in deeds, not words. That’s why we are dedicated to the fulfillment of your business objectives in the first place, rather than just to the delivery of the requested dev services. Are you in search of market-leading software outsourcing & outstaffing services? Share your project details with PM Partners and let specialists handle the rest.