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‘Hire a dedicated development team for your enterprise software development project’. Have you got this suggestion ever as an IT leader? Wondering why? Because 50% of IT organizations identify skilled talent acquisition as a pressing challenge. Additionally, it costs around $4000 on average to hire a new professional as per Glassdoor.

Think of hiring a software development team to work in-house with you. It means dealing with an awful list of things such as detailed talent skill profiling, creating a consistent work scope for each member, mapping out the budget against the market and experience (or proficiency level), listing out a whole set of employee benefits, and investing to recruit the right fit and create a cohesive team. Seems overwhelming right?

To add more to the above, there is a predicted global technology skill-shortage of 85.2 million by 2030 with a risk for enterprises to lose around $8.4 trillion in revenue as stated by Forbes. That means, it’s a financially draining and extensively hard job to put together a great software development team in-house.

But, is this the dead end for you as an enterprise to overcome the hard-to-breakthrough skilled resource sourcing challenges? Obviously not! You can get over the full-time resource recruitment challenge when you opt to hire a dedicated development team. Let’s understand the critical challenges that enterprises can overcome by employing the dedicated development team model.

On This Page

1. Five IT Challenges to Overcome with a Dedicated Software Development Team
2. Dedicated Development Team Model Vs Outsourcing Software Development
3. Best Practices to Hire a Dedicated Development Team
4. Partner with Valorwide to Hire Top 1% Dedicated Software Developers

Five IT Challenges to Overcome with a Dedicated Software Development Team

2023 is a year of dramatic technological evolution. There is an accelerated digital transformation with the emergence of AI, AR and VR, ML, and quantum computing. Tech enterprises are struggling to match the pace with the rapid technology change with more innovative products that can help them build an edge in the market. In fact, Forrester Research states that the global technology market will witness a robust 6% growth rate in 2022 and 2023. This continuous growth and constantly changing needs in the technology market make it vital for enterprises to leverage ‘SMART’ approaches to software development. One of them is employing a dedicated software development team who will work as part of your workforce via a partnership model with an outsourced organization. How does it help? Explore the benefits against the constant IT enterprise challenges below. Valorwide provides affordable pricing dedicated development team. 

Challenge #1: Increasing Tech Skill Gap

The tech skill shortage is not a new thing anymore. In fact, it is predicted that the talent crunch will lead to 85 million unfilled open positions by 2030. Additionally, Gartner’s report states that two-thirds of IT firms are unable to adopt emerging technologies and face growth barriers owing to skilled talent shortages. In fact, this has become the biggest concern for CIOs and CTOs as the impact on technology innovation is holding back the IT companies from competing for growth and expansion.

The talent crunch is doubling down year after year with more hurdles for IT leaders to acquire the right execution support. However, this doesn’t mean there is a lack of people, instead, it implies that there is a shortage of the right skills to perform the execution as per present needs. Furthermore, the spur in innovative and disruptive technologies, worsens the talent crisis having more demand with less supply.

This implies that IT companies not just have to focus on hiring people but also have to make huge efforts to train or upskill them to meet the changing needs of time while also retaining these talents.

So, how do get software development projects executed rightfully without adequate skilled people?

Solution: Hiring a dedicated software development team works as a great solution to the ongoing global skilled workforce crisis. It is a smart way of utilizing the available skilled technology professionals without competing in the recruitment market. You can hire a dedicated team (comprising product managers, designers, and developers) to work on your software development project and control the outcome as desired.

Benefits of Hiring a Dedicated Software Development Team

• Quicker access to technology and function-specific domain experts as compared to hiring or upskilling in-house talent
• Access specialized skills for niche technologies including AI, AR/VR, IoT, Blockchain, Robotics, MI, Cloud, Cybersecurity, and more
• Better backup to drive digital transformation efforts at optimized asset liability
• Break the recruitment market barriers by hiring skilled developers from locations where the talent crunch is less acute

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Challenge #2: Hassle with Recruitment and Payroll Management

Recruiting and retaining tech talents in today’s market is a real challenge for IT companies. One reason for it being a challenge is the talent shortage that has been explained above already. Other reasons include the time, cost, effort, and added liabilities of maintaining the resource.

Hiring software developers in-house involves finding the right talent, creating a consistent scope of work, reskilling or upskilling the resource as per changing skillset requirements, and managing payroll on an incremental basis for the long term. The amount of effort and cost that goes into putting together a skilled software development team in-house becomes an obstacle to fast scaling for IT organizations. In fact, it is a critical challenge for IT firms to accommodate their short-term and immediate outcome-focused projects with dependencies on recruitment.

Solution: While most IT firms opt for outsourcing projects, many take the smart route to hire a dedicated software development team. By leveraging a dedicated development team for hire, IT companies can omit the whole recruitment, retention, and payroll management hassle while getting resources who will perform focused execution for the company’s software development projects. A dedicated team works for your company as an in-house resource for one or multiple projects while being remotely located. You hire a dedicated team to work for you based on a partnership or collaboration model with an offshore IT solution outsourcing vendor.

Benefits of Hiring a Dedicated Software Development Team

• Tactful mitigation of developer turnover
• Domain experts helping you scale catering to multiple software development projects and business priorities similar to an in-house resource
• Saved recruitment time and costs for the right skillsets
• No stress of payroll management for individual team members

Challenge #3: Costs to Execute Software Development

The biggest concern for IT companies often remains the cost. IT leaders are now focused on ways to right-size the resourcing costs and achieve agility and more control that will help them tackle business uncertainties. Talent acquisition is in itself a costly affair. Companies invest huge amounts of money to acquire new resources. In fact, according to SHRM (Society of Human Resource Management), it costs around $4700 on average to hire a single skilled resource. Now, once a resource is hired, there are plenty of more added costs that an organization has to manage to retain the talent and justify the investment. Thus, the cost of talent acquisition is a vital factor or barrier for IT firms when coming up with a new software development project idea.

Considering the present technology landscape, IT leaders are constantly working to evolve and break through with new tech products. This implies a continuous flow of software development work with long-term and short-term tenures. However, hiring a whole team in-house for catching up with the emerging demands of the market and business might turn extremely expensive for the company. Moreover, the hired people or team will need training and growth nurturing. All involve additional support resources leading to more costs.

So, how to handle such huge cost barriers to software development?

Solution: IT leaders can optimize the costs of software development by leveraging either the software project outsourcing model or the dedicated development team model. Both models help eliminate the costs involved in hiring and retaining talent in-house. The saved costs of in-house recruitment can be utilized to optimize the performance of technology innovation and other business growth areas.

Benefits of Hiring a Dedicated Software Development Team

• Tactful use of capital on people and technologies
• 40% to 70% reduction in software development costs
• Greater agility to drive innovation through strategic tech investments
• Able to breakthrough market struggles of acquiring the highest caliber skilled talent at a much-optimized cost

Challenge #4: On-Demand Scale-in and Scale-out

IT companies have an immense number of software development projects where the need for execution support keeps changing. Large enterprises are often seen burdened with skilled professionals with no concrete scope of work. This is a big challenge for talent to pull out of job roles and also is a concern for companies in terms of cost. Therefore, on demand scale-in and scale-out for software development projects is a vital concern for IT companies.

Solution: You can get on-demand execution support for software development with a project outsourcing model (which involves fixed time and material) or a dedicated development team model. However, hiring a dedicated remote development team brings in more flexibility and control as compared to the fixed time and material business model. The dedicated team model allows you to easily scale in and scale out as per the changes in requirements.

Benefits of Hiring a Dedicated Software Development Team

• You get quicker access to highly productive skillsets
• Gain flexibility to scale in and scale out anytime without any disruption to the project or business
• Lower stress of managing resources and their day-to-day work schedules
• Stay updated on market trends in terms of technologies used, execution processes, and security standards
• Minimized risks with lesser dependency on one source
• Greater control of the output

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Challenge #5: Inability to Accommodate Urgent Development Projects

Being in the technology business means dealing with rapid changes, sudden trends, and extreme uncertainties. IT organizations deal with ‘urgency’ all the time. There are urgent or immediate development needs that have great ROI attached to them and have to be executed with optimal expertise.

But, do IT firms have the capacity to manage such urgent needs?

Mostly no. Project managers struggle to accommodate urgent needs.

IT leaders have three ways to manage this gap. One is hiring new resources (in-house talent), another is assigning tasks to the existing specialists, and the third is outsourcing the work.

1. In-house hiring
   Did you know it takes around 62 days on average to hire for tech roles worldwide?
   This means you have to wait for almost 62 days to fill a software developer position to actually start a high-priority project.
2. Assigning to Existing Tech Specialists
   The existing in-house tech experts in IT companies are often highly burdened with deadlines to finish their existing projects and are dealing with multiple workloads at a time when there remains no scope to delegate urgent requirements to them.
3. Outsourcing Work
   Outsourcing urgent projects is a great way to get execution accomplished without getting into resource availability issues. However, you have less control over the implementation practices performed to complete the urgent project at hand. Furthermore, you need a concrete project scope to leverage this method and get the output as expected.

Hence, resource availability becomes a high-concern challenge for IT leaders, across organizations of all sizes and scales. This gap (inability to manage urgent needs) brings in agility constraints for the organization, making it harder to scale and grow.

Solution: The best way for an IT company to get over the resource availability concern for urgent software development projects is to hire a dedicated team. A dedicated team will help you quickly ramp up urgent needs at much-optimized costs and time while enabling obtain the desired outcome.

Benefits of Hiring a Dedicated Software Development Team

• You get more control over the software development execution processes
• Access to skilled people to support your project with a vague or unclear scope at lesser time and cost
• Focused delivery of the project

The last few years have been particularly brutal for IT enterprises. The technology trends are intensifying, and companies are battling to match the trends with a worsening skilled talent landscape. In this situation, the option to hire dedicated offshore developers accounts for a full-proof strategy. Not just the developers, you can hire a dedicated team inclusive of project managers, designers, developers, QA specialists, and DevOps experts (optional). The dedicated development team model is a double-edged sword for IT leaders to evolve, scale, and grow with the changing dynamics.

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Dedicated Development Team Model Vs Outsourcing Software Development

IT enterprises often confuse the concepts of technology project outsourcing and hiring a dedicated software development team. While both do cross paths because of the involvement of an offshore outsourcing partner in the middle, the two models are very different from each other. Let’s find out how from the below comparison table.

Dedicated Development Team Model	Software Development on Project-to-Project Basis
Top-skilled professionals working dedicatedly on your software development project (whether one or multiple)	Shared resources working on multiple projects from multiple clients
You pay for the hours invested by resources in the execution	You pay a fixed amount for the project execution irrespective of the hours worked
You have complete control over the execution of the software development project(s)	You will have no direct control and has to check on updates through the vendor’s team
Professionals operate as direct in-house employees and work as a part of the core team	Professionals work as a team of outsourced vendors who are only focused on delivering the output
You can change or alter the requirement and scope of work anytime	Strictly determined project requirements and scope of work prior to starting the project

Hope, this above comparative overview between project-to-project outsourcing and dedicated development team outsourcing offers you the clarity needed to take tactful decisions in today’s business-market scenario. The best part of the technology market is that you have the opportunity to pivot and scale. Leverage an approach that offers the maximum benefits at minimum pay-offs. Before you conclude, check out the best practices to hire a dedicated remote developers team.

Best Practices to Hire a Dedicated Development Team

Dedicated teams are extensions of your own in-house team located in a different location. Tactful hiring of a dedicated software development team will help you maximize the results of your time and cost investments, while also getting you the finest execution quality. There is a whole lot of process that goes into hiring a dedicated development team that might take a bit of effort. However, before you get into the process of hiring in reality, get hold of the best practices to avoid making costly mistakes. 

Some of the common questions that IT leaders deal with when looking to hire a dedicated team include:

• Can the hired dedicated team able to deliver the quality of output needed?
• Was the team will have the expertise and grip on the technology stack you use for software development?
• How to ensure the security of your software development project?

The answer to these questions lies in the practices you consider for hiring. Choose your dedicated development team wisely. Here are the best practices for hiring a dedicated development team.

Look Beyond the Time Zones

Never let the time zones get in your way to access the best resources with the skillsets you need the most for getting your software development project executed with high-level expertise. Look beyond the geographical boundaries and access the right talent for your project execution.

In fact, considering the present global skilled talent shortage, offshore hiring of dedicated teams works better and profitably. Developing countries like Ukraine, Philippines, and Bangladesh are often recognized for top-notch talents with high-grade skillsets. You can leverage such markets to get over the barriers caused by resource crunch (whether people, time, or cost) for software development projects.

Hire a dedicated software development team from technology market leaders like  Valorwide. Here you get the right expertise, the right experience, and the best costing.

Hire Specific to the Skillsets Required

Hire a dedicated team specific to the skillsets required. Don’t go by vague hiring profiles with reference to talent with simple designations or their job titles.

Whether you hire a large or small team, you must ensure that the designer, developer, QA specialist, project manager, and DevOps expert have the right set of skills needed for your project. People with great experience but limited domain expertise will be a misfit.

Hence, look beyond the job titles and experience level, and identify the skillsets that each of the team members must have to get your software development project executed successfully.

For example:

Software developers: Knowledge of IoT, Blockchain, Cybersecurity, AL, ML, and more

Charting out your dedicated team members with specific skill sets will help you build a team that yields the maximum output.

Always Check for Work Portfolios

Never miss out on checking out the work portfolios of the dedicated team you are considering for hire. Work portfolios help you identify whether the dedicated team you are choosing has the ability to deliver the outcome you expect or not. You can analyze and identify the potential of the team’s execution abilities with reference to the work portfolios (having a glimpse of work done for previous projects). Additionally, it will help you understand whether you need the expertise or not.

Therefore, always consider referring to the work portfolios of the dedicated team you want to hire for software development.

Sign NDA to Ensure Confidentiality

You should always sign an NDA when you opt to hire a dedicated team. An NDA protects the confidentiality of the project and enables keep your idea, assets, technologies, and other details secure. This helps avoid conflicts of any sort. Valorwide Alwyaes prefer client data safety.  We ensure client satisfaction.

Thus, get hold of these above best practices checklist to hire an offshore dedicated development team to break through the market barriers and business challenges of software development projects.

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The above article has been quite explanatory to guide you with the right approach to acquire 5x exceptional capacity for software development needs amid the constantly evolving technology market. CIOs and CTOs are quickly adapting to ‘SMART’ methods of software development to come up with ‘breakthrough technology innovations’ that give them the edge in the competitive curve. Having said that hiring a dedicated development team from top skilled talent outsourcing providers works as the greatest weapon for tech managers to overcome the ongoing skill gap and focus rather on building innovative digital solutions

Valorwide Ltd is a global leader with a phenomenal market reputation for having “the right skilled people”, “the right technology proficiency”, and “the right execution practices”. Being 98% CTOs trusted software outsourcing companies, Valorwide has the top 1% vetted domain experts with skillsets perfectly matching diverse project needs. Decode the complexities of your software development project with the high-caliber expertise of our vetted dedicated software developers generating 8x ROI for clients.

Get in touch with us right away to scale with a dedicated development team composed of the top 1% skilled talent!