There is a lot of said by outsourcing companies about advantages of dedicated team model, however very few of them tell real drawbacks of it. See this presentation and hope it will help buyers to choose a correct engagement model when outsourcing software development.
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Pros and cons of dedicated team engagement software development model
1. Pros and cons of
Dedicated team
engagement software
development model
Outsourcing Softw are Development
company in Eastern Europe(Belarus)
Professional IT development
www.belitsoft.com
2. WHAT WE MEAN UNDER THE TERM “DEDICATED TEAM OR
DEDICATED CENTER”
A team of 1+ member from our local employees works onsite or
offsite 100% for a client for a long term period (12+ months)
Client has FULL control over the team: decide day to day activity
(can do this through our Project Manager), when to fire or hire new
guys, when to increase salary, etc.
Account manager from our company is assigned to a client to
consult, to solve any client’s problem which can’t be solved by his
team in our company and to do invoicing.
Professional IT development
www.belitsoft.com
3. ADVANTAGES OF DEDICATED TEAM IN COMPARISON TO OTHER
ENGAGEMENT MODELS IN SOFTWARE DEVELOPMENT
Client has FULL control over the team – it is like extending to his
local IT department.
Client can be sure that his Dedicated team will be available for
him anytime and can’t be used on not his tasks without his consent
Dedicated team is good for long term projects (12+ months) as
project knowledge is kept inside the team, specific experience,
client’s business understanding grows.
Client can predict budget as dedicated team works with a fixed
monthly cost, no hidden expenses.
Average hour rate in Dedicated team is significantly lower then
in Fix price or Time and Material engagement models.
Professional IT development
www.belitsoft.com
4. ADVANTAGES OF DEDICATED TEAM IN COMPARISON TO OTHER
ENGAGEMENT MODELS
Pricing transparency in dedicated team model means that we
share with the client each team member’s salary, on top of this
we add our monthly FIX service fee which is equal for any team
member.
This assures that our interests are aligned and that there is no
incentive for us to hire people with low salaries and bill them out at
high rates. Also we don’t benefit from higher employee salary,
bonus or overtime payment to employee. In this model, you truly
get a partner in the face of our company.
Professional IT development
www.belitsoft.com
5. DISADVANTAGES OF DEDICATED TEAM IN COMPARISON TO OTHER
ENGAGEMENT MODELS
Main disadvantage is that regardless of the team’s effectiveness a
fix monthly invoice should be paid in any way. That is why
Client has to make sure that his dedicated team has enough tasks
to do and does them in the right priority order.
An effective way to collaborate/communicate with the dedicated
team should be found. We can help here.
Another disadvantage is that in order to have low turnaround of
personnel in his dedicated team client should try to
Create good relations with the team
Find interesting tasks
Do right management
Etc.
Professional IT development
www.belitsoft.com