To effectively manage your project development activities, you need professionals who can deliver the project according to the requirements within the timeframe. Many a time, you might face challenges while expanding your team and dealing with the ever-increasing budgets, costs, and training overheads.

Having access to expert developers is very important to streamline the development processes in the best way. However, the biggest issue lies in the costs and budgets. Should you hire in-house talent or outsource your project requirements to a dedicated development team? This is a million-dollar question.

Many times it gets difficult to come to a decision. So which development model is the best when it comes to costs and budgets? Is a dedicated development team worth the costs or should you hire an in-house team for your project requirements? In this article, we have tried to keep things transparent and compare these development models. Let’s dive right in!

In-house Team vs. Dedicated Offshore Development Team: Ultimate Cost Comparison

The average salary of an iOS developer in the US is around $133,548 and is no less than £70,000 in the UK. The salary structure is just one side of the coin. Not to mention that the salaries are recurring amounts. There are other cost factors when it comes to managing bigger goals.

According to recruiting managers, it takes at least 30 days to hire employees. The onboarding, induction, and other formalities add up to this. This time could be put to good use for better profits. If you are planning to hire in-house talent, you would provide your in-house team with infrastructure, office space, computers, basic amenities, and of course licensed software. This adds up to the costs.

There are several employee benefits, insurance, 401k plans, annual increments, performance incentives, bonuses, raises, and other benefits. Training and upskilling are a few other aspects that come with attached costs. For a specific project, you need to train your employees which not only is expensive but also eats up loads of time.Recurring costs such as transportation costs, food costs, incentives, parking allowance, and other payments add up to a huge amount.

Just imagine that after investing all that money, time, and effort in your in-house talent, they decide to leave your organization after 3 years. Now it is time for them to move to a different company for better opportunities. How does that feel? You need to hire new talents just like before.

This is where the offshore development team proves to be better in every aspect, especially in the case of costs. Offshore development teams come with no liabilities and you do not need to spend much on them. Such a team is advantageous for your organization and can cut down the extra costs to a minimum.

Cost of Hiring An Offshore Development Team

Studies indicate that the average salary of an iOS developer in the US is $52 per hour, and you will be surprised to learn the same hourly charge to be as low as $22 per hour for a country like India.

When hiring an offshore development team, you do not have to worry about the recurring costs, office infrastructure, upskilling, performance incentives, bonuses, insurance, and other overheads. By hiring an offshore development team, you are saving time and money by huge amounts.

Let’s check out some benefits of hiring a dedicated offshore development team.

Benefits Of Hiring A Dedicated Offshore Development Team

Improved Project Outcomes

Working with a dedicated development team is like committing to the project deliverables. With a dedicated development team on your side, you can have transparency. This keeps you and your team on the same page and keeps the project on track. The dedicated team is committed to seeing your project through to the end. This factor steers your project in the right direction and improves the outcomes exponentially.

Better Turnaround Time

A better turnaround time for delivering a project is vital when it comes to hiring a dedicated development team. Your project might have several critical checkpoints to be delivered and dedicated developers always live up to your expectations and project requirements. Offshore developers are experts in their domains and extremely stringent about client satisfaction. These developers keep you in the loop for feedback, updates, and processes. This increases better turnaround times.

Business Orientation

When you hire offshore dedicated developers, you can be assured that an entire assembly of developers, and project strategists is assigned to your project. This means that the project stands tall even if a person or two is taken ill. There is always a backup from the entire group when one of the developers is not available. This gives you an upper hand in steering the project ahead according to the time frame. This type of business orientation comes with dedicated offshore developers.

Continuity & Stability

Continuity and stability are two important factors that define the effectiveness of working with dedicated offshore developers. These dedicated developers meet the deadlines and all the deliverables in a situation when someone from the team cannot continue the work for any unavoidable reasons. With a dedicated offshore development team, you are not left with the project half-done. There will always be someone who can take care of the project until a replacement is recruited.

Access To Expert Developers

Most of the dedicated developers favor working on long-term projects as they possess a high degree of responsibility. This model puts forward the superior development and project knowledge of developers to use. Working with a dedicated development team allows you to get access to expert developers.

Outsourcing Is Cost-Effective

Starting a project comes with tons of investments. Hardware upgrades, software updates, licenses, workstations, servers, office infrastructure, and much more for your project. Apart from these costs, you also require to pay your employees every month, not to mention the training expenses, insurance, medical, dental, and other overheads. Outsourcing your projects is a great way to eliminate costs especially in terms of infrastructure and other overheads. It is a cost-effective way to get your project delivered on time without increasing your team.

Super Flexibility

Getting an offshore software development team allows the project to be more agile as the team is quite responsive to changes that are required. Offshore dedicated developers are an addition to your internal teams. Delivering to projects within budgets becomes extremely easy when you have a team of dedicated developers. Apart from that, these skilled developers streamline the project workflow when there is a paradigm shift in the frameworks and priorities. This is equally important when dealing with repeating tasks and managing the periodic changes.

Faster Time-To-Market

When you have a dedicated team of software experts and developers, you have access to industry experts who can effectively manage your requirements and deliver the project in time. Effective project management is what you get by working with dedicated offshore developers and this results in project delivery on time. Hiring a dedicated development team is the best choice for your software as these experts reduce the development time and help you in marketing the project according to the plan.

Industry & Technical Expertise

Hiring industry experts will always give you an upper hand in knowing the current market scenarios and information on how your competitors are performing. Dedicated development teams have worked with different clients and have successfully delivered several projects. Apart from that, understanding different business models in depth is no big deal for these experts.

A dedicated development team is also familiar with the latest technologies. Core competencies such as cloud computing, database management, AR VR, blockchain, programming are just a few latest technical skills these developers bring to the table.

Fixed Budgets

Hiring a dedicated development team is the best way to make sure that you do not jump over your budgets. The agreement you sign with the team defines the terms of engagement clearly. It indicates the deliverables, timeframe, submission of deliverables, costs, the time required for each module, and the complete estimated cost of the entire project. There are no surprises when it comes to the budgets.

Is Dedicated Development Team Worth The Costs?

When you get an offshore development team, you have access to a remote team. This means the time of each developer is exclusively for you and they will work on the specific project they were hired for. These developers do not take other tasks and there is no resource sharing between multiple projects.

With a dedicated model, you get the services of an experienced project manager who is your first POC (point of contact) for communicating all the details and progress of the project.

An Additional Internal Team Without Added Costs

You can think of an offshore development team as a remote dedicated team that works as a part of your own organization. You can have access to the team without investing in additional infrastructure, workstations, servers, benefits, and other expenses. The advantages of this dedicated offshore development model are quite clear:

• Greater transparent team management and superior control
• Greater productivity levels
• Complete flexibility and project scalability
• Highest engagement levels and attention to project details

In a nutshell, there are few pointers such as the quality, amount of dedication, expertise, years of experience, greater focus make this model, the most cost-effective above all. When running short of time, you should always go for a dedicated development team. You get access to the following if you hire dedicated developers:

Reliability

With a remote dedicated development team, you get a complete commitment at all times.

Security

Dedicated teams offer end-to-end solutions and data security. The agreement you sign with them contains all the required terms in detail. This includes project confidentiality and data security.

Scalability

If your project has the potential to grow over time, a dedicated team of developers is the best you should get. These experts handle changing requirements with ease.

Control

With a dedicated development team on your side, you have greater control of the project development and workflow.

Although considering the costs and budget is pretty important, you might jeopardize the quality of development and timeliness of your project if you go for freelancers or in-house talent. This could have a dramatic effect on the time-to-market as well. With a dedicated model, the payment depends on the type of agreement. Costs may vary depending upon the team size, type of project, and resource expertise.

“Having a DEDICATED DEVELOPMENT TEAM is like fighting an uphill battle and winning”!

How Will Your Business Thrive With A Dedicated Development Team?

Depending on an in-house tech team to research, and adopt new technologies can be challenging. Especially in a world that is vying to thrive in a society that is run by technologies. It is also tedious and less effective to train your staff whenever you introduce new hardware or software to the team. This is where an offshore development team can be helpful.

In simple words, hiring a dedicated development team has several advantages. You can have access to professional experts in case of hiring a dedicated development team. Apart from that, you can also reduce a significant number of overheads as there are no legal overheads or recurring costs. Offshore development is becoming the norm. If you have made it this far, we strongly believe that you now understand the importance of hiring a dedicated offshore development team at DRC Systems. Check out how we can help you with your project and contact us to schedule a call.