Dedicated Team Model: A Winning Approach to IT Outsourcing
Dedicated Team is a business model which is gaining huge interest in the outsourcing business. It’s a model where client and the service provider mutually agrees on the workload and the project requirements for a period of time and development company provides the IT professionals that suit the client’s anticipated demands and requirements. The dedicated team will fully concentrate on the decided project at a time and the Client will have full management control over the project and team. The development company will be responsible for recruiting and administrative support. The Dedicated team acts as the virtual extension of the client’s in-house development team.
It is very important that the service providing Development Company has a clear-cut approach on the DTM setup and working mechanism. The Development Company should be accountable and responsible for maintaining the resources in the DTM in the desired fashion as agreed with the client. The efficiency of the DTM also has to be guaranteed by the company as it largely affects the end product development. Mostly the DTM’s has a monthly billing cycle and are quite transparent and has a simple pricing system. Every month client pays the service provider a fixed amount money that depends on the size and composition of the team. The service provider takes care of the salary cost, administrative, infrastructure expenses and other overhead costs.
This model is best fit for long-term projects, where requirements are unclear initially, scope changes frequently and for the projects which are scalable in character. In scenarios where the client’s development team lacks skills or expertise in specific areas, then the best suggested approach is to hire a DTM that has the required skillsets and who can work as an extension to his existing team.
When it’s appropriate to use a dedicated team model?
You can consider using a dedicated team model in the following scenarios :
- If you are planning to build a long-term strategic relationships with a software development service provider.
- If you have the requirement of a full fledge team that has various skills and expertise but if you cannot manage them directly.
- If you are looking for a quality development team and when you want to keep the development cost to the minimum.
- If your requirements and goals are not clearly defined and may undergo significant changes in the development process.
- If you are working on a project that has tremendous scalability chances, a dedicated team model is useful here because as you can make use of the same team with the same fixed billings.
Major features that a dedicated team model can offer:
- The team is fully dedicated to your project.
- The Service Provider provides a Project Manager and a Business Analyst with whom you can seamlessly communicate.
- Client can personally interview software developers and monitor their work, if he wishes to;
- Customer has direct control over all the stages of the project.
- A time sheet will be provided by the Project Manager on the tasks undertaken in a DTM cycle.
- The costs are fixed and charged on monthly basis.
- Client is completely involved in task assignment, resource allocation and milestones.
Major benefits to a DTM model:
- Transparent process.
- Quality resource and project management team at relatively lower rates than the normal fixed price bid.
- No long-term investments, maintenance, infrastructure, startup expenditures or taxes.
- An extension of own development team with reduced administrative overheads and other barriers.
- Access to a vast pool of IT professionals with diversified programming skills from which you can choose on the basis of your project requirements.
- Complete control over the team structure with easy replacement or addition of the team member on your demand.
- As the same team is working on the project for a prolonged period, any transition based issues can be avoided.
- Developers become more qualified in the project’s technologies which will largely improve the overall quality of the project.
- As a Project Manager and a Business Analyst will be coordinating the project at the Service Provider’s end, the knowledge transfer and the conceptualization becomes more simple, obtaining more coordinated work.
- Work estimates will be submitted by the PM before the start of the sprint in a DTM cycle and detailed time sheet after completion.
- Improved pro activeness of the employees due to reasonably long-term association.
- Direct and frequent communication with team members and, as a result, better mutual understanding;
- Usage of a project management tool for monitoring the resources resulting in Comprehensive task progress reporting with extensive control.
DTM’s at Cubet :
Cubet being one of the leading service provider in SMAC solutions has a great history of setting up and maintaining successful DTM’s for several corporations as well as startups in the UK, US regions. The success of a DTM largely depends on how well the service provider takes care of the DTM resource and how good the infrastructure and environment provided are.
At Cubet, we have an organized set up for gathering the exact requirements from the client and setting up DTM’s based on the requirements. We take utmost care to keep the process transparent and problem free. We have a project management team responsible for managing and running the DTM and a project manager will be in constant touch with the client, in addition to this, a Business Analyst is allocated to take care and coordinate each of the DTM’s that we run.
From our experience and the feedback we have from our DTM clients, DTM is the most successful project development model that we practice at Cubet. We currently maintain 8 DTM’s with team sizes ranging from 2 to 23, the DTM structure is mostly a mixture of resources including Web, Mobile, UI/UX, QA and Project Management Professionals.
The main aim of the dedicated team is to work seamlessly as part of client’s team to provide quality, unique and project-specific solutions. Making things simple and never complex!