In this article, we compare outsourcing vs dedicated development teams and that helps to understand the benefits and drawbacks of each model within specific types of business. If you’ve ever considered extending your software development team with top talent overseas, this article is just for you!
Let's dive in
What is dedicated development team?
A dedicated software team is a complete group of software engineers that is managed by a third party for a client organisation. Unlike outsourcing, a dedicated team works exclusively for the client as a part of the company. The third party oversees operations on the ground such as payroll, equipment, and in some cases engagement.
What is outsourcing?
In the tech industry, outsourcing is the practice of engaging third-party vendors on a contract basis to deliver software. This means partnering with freelancers or companies hiring freelancers for one-off projects.
Here are the top 6 factors in comparison
| Outsourcing | Dedicated development team | |
|---|---|---|
| Location | In country or offshore | Global talent hotspots |
| Scope | Project based contracts with the option of extending | Ongoing product based contracts |
| Cost | Lower upfront costs with potential hidden costs | Cost savings from lower overheads and salaries |
| Communication | Delayed via project managers | Instant via your own systems |
| Project management | Run by third-party managers with little oversight and visibility | Complete control. You assign tasks and have full visibility into work |
| Best for | One time and irregular development or when starting up (e.g., developing a website or MVP) | Accelerating development in established products in a cost optimal way |
Learn more here about the dedicated software development team
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