When it comes to software development, there are three main ways to cooperate with development companies:
- On an hourly basis
- Fixed-price project
- A dedicated team
In the pay-per-hour model, the client pays for the time developers spent working on the project.
Fixed-price projects mean that all requirements are defined clearly before the start of development, and the cost involves a fixed amount for money for a usually finished product.
In a dedicated team model, the client has the most flexibility, as it can change the scope of work and it pays a price per person in the dedicated team. More people in the team mean higher costs.
The idea of outsourcing is not really new on the market, and many businesses are already working with remote teams. In recent years, companies started using dedicated team models t speed up the process, while bringing a new level of expertise to the table.
In this article, we will talk about the dedicated team model, the pros and cons of it, and explain why is it a good choice for the development of blockchain products.
What Is a Dedicated Team Model?
The main idea behind a dedicated team is that the company will hire a group of professionals who will be able to complete the given task without any difficulties. Usually, the company that’s looking for help will make an agreement, and they will, to put it simply, rent a team of IT professionals as well as QA engineers, UX/UI designers, business developers, and other roles to complete a fully cross-functional team. This also means that the team will work exclusively on the client’s project, just like the full-time in-house team would.
Dedicated teams typically work full-time, but part-time is also an option. When it comes to the billing – clients pay a predetermined amount in advance, which means that there are no unexpected expenses.
While these teams are more than capable of finishing tasks by themselves, it is essential to mention the importance of the involvement of the client in the process.
How Can a Dedicated Team Meet Your Business Needs?
By comparing dedicated teams and other models of outsourcing work, we can see that both take a lot of work off of the client’s hands. By choosing a dedicated team, the client will maintain complete control over the entire development process. DTM (Dedicated Team Model) provides an excellent opportunity to get the job done while remaining integrated and fully invested in the whole project.
This is especially important in case when the company is still young, without a detailed business plan and processes in place. By consulting with the hired team, they can find the approach that is perfect for their business development. Finally, if any mistake or change occurs during the process, it can be corrected immediately. The same goes for priorities since it’s possible to change focus during development.
What Is Dedicated Blockchain Development Team Structure?
At MVP Workshop, we have a unique approach to ensure our clients get the best possible service. Not only can we help define the idea and develop the product successfully, but we can also help with further growth of the project. Our process is separated into three phases — define, build, and grow.
The “define” phase involves product discovery and definition, where the client will get the idea of how the project will evolve. It is followed by a technical roadmap and interactive prototypes. A blockchain development dedicated team consists of business developers, brand designers, product designers, product and project managers, and engineers during the definition phase.
The second phase, or “build” phase, is in charge of translating the defined technical product base into a market-ready form. It also involves perfecting the user experience and UI design, implementing blockchain technology, ensuring optimal integration with third-parties, and, if needed, developing smart contracts that are both optimized and secure. During the building phase, frontend and backend engineers will join the project, as well as blockchain architects.
Finally, to ensure healthy growth, two previously mentioned teams will combine with an option to involve more members like UX and UI designers. The main goal of the “grow” phase is to create continuous product development in the future while enabling custom-tailored services.
Advantages of Using Dedicated Teams for Blockchain Development
The advantages of a dedicated blockchain development team:
When it comes to planning, the client can make changes on the go, enabling the whole project to grow at a natural pace.
- Full control
The client will keep control of the entire project.
Since the team is working only with a single client on a single project, they will be able to focus all of their attention and efforts on that single endeavor.
- Team scalability and composition
The client can choose the size of the team as well as individual members. They can also add or remove more teammates if needed, depending on the current stage of the project.
Each developer in the team has years of experience behind them, and they know current trends and technologies.
- Understanding of the project and processes
The client will have full knowledge of the plans and procedures that involve working on their project.
- Continuous communication
Good communication is the key to success, and the client can be in touch with the team day-to-day, throughout each phase.
- A wider range of resources
Since there are many skilled members of the team, everyone can contribute to the project. DTMs have a complete crew and you don’t have to worry about hiring.
These teams are known for their efficiency and success rate. There is no doubt that a team of well-coordinated professionals can make things happen efficiently.
Disadvantages of Using Dedicated Teams
Each approach is better suited for some use cases and contexts than others, so you should know that there are several disadvantages when it comes to hiring a dedicated team:
While communication is also an excellent advantage to this business model, it can prove to be difficult if there is a language barrier present or the team is in a different time zone. Depending on the location of the dedicated team, sometimes, the whole process can become tiresome.
- Not suitable for short-term projects
Evolving and changing priorities may not be possible for short-term projects. The whole idea of DTM is to help you but over a certain period. If you are unwilling to go long-term (3+ months), then this might not be the best option for you.
- Bad for small-scale endeavors
Small-scale projects might not benefit from DTM. Similarly to short-term ones, the entire process will need time to breathe, which is nearly impossible on a small scale.
Working with a DTM requires integration and communication with the in-house team. If your in-house team does not communicate with the dedicated team, the project will not run as intended.
Which Business Types Does This Model Fit?
The dedicated team model can fit all business types as long as they are hiring new staff and looking for a long-term collaboration. In addition, this applies to any company without a recruitment department, or one looking to expand its team. Of course, when we talk about something like Blockchain, hiring a team that has years of experience working in the industry is an obvious choice.
Among the businesses that can benefit from DTM are startups, small businesses, and even large corporations. The only criterion is that the company is looking to improve and leave its mark on the blockchain platforms.
When to Consider Dedicated Team for Blockchain Development?
Each company will have to decide when is the best time to look for a dedicated team. However, several signs might help with answering that question.
The first is a talent shortage or lack of experts. While the whole blockchain industry is rather young, many people have been working in the field for years. Naturally, not every company has its own blockchain expert. It is rather difficult to create a team of experts in the world of blockchain. The market is changing and evolving fast, which makes it hard to keep up with the trends, especially when it comes to product development. So if you are looking to expand in this field, you will need someone who knows how things work.
Since technology is rapidly growing, hiring in-house teams might take more time than you’re willing to spare. Needless to say, when it comes to innovations time is always of the essence. The last thing you need is for your product to become obsolete before its launch. A dedicated team is an easy solution, prepared within a week and ready to go. Finally, working with one will save you money in the long-term, which is always a good thing.
What Is the Cost of a Dedicated Team?
There are several different ways to pay your dedicated team or to count the cost of the entire project. Firstly, you can calculate the developer’s salary and add the vendor’s fee. If that is something you’d like, then you will know your costs for each month in advance. One of the reasons this model is so popular is due to easy budget planning.
The second type involves individual hourly pay of each team member. If we count 40 hours each week, all you need to do is multiply that number with the hourly rate and number of team members. However, this model is far from ideal since it is rather difficult to keep track of or limit all the expenses. Besides, it lacks transparency since you won’t know how much each developer earns from the sum you paid, nor will it account for any overtime hours. If the project requires more work, your expenses will grow as well.
Finally, you may get a fixed price for each month, which is not so common. It is challenging to determine the amount of work before the job even starts. For our clients, we offer an in-depth discovery workshop, which serves to create a roadmap and a detailed plan for the entire project.
Moreover, you will have a full understanding of what you’ll get for the money you pay. In essence, the client will need to pay the developer’s salary and the service fee of the vendor.
Criteria for Picking Reliable Vendors
Now we come to the main question – how to find a reliable vendor? There are several crucial things that you should check for when looking for a staffing vendor.
One of the first things you should consider is values. It is essential to find a vendor that shares your company’s values. For example, you can have a modern firm and work with another that is more old-fashioned. Needless to say, the relationship between the two will not be as fruitful as between the two with the same ideas and values.
The second vital thing is communication. A vendor that delivers timely responses to any query is a sign of reliability and trustworthiness. Furthermore, communication is always a critical factor, so you should look for companies with an open and transparent approach.
- Check testimonials
You won’t have an easy time finding a portfolio of a staffing vendor. However, what you can find are testimonials that can testify to a vendor’s capability.
Why Should You Work With MVP Workshop’s Dedicated Team?
One of the things we take pride in, here at MVP Workshop, is dedication toward defining, building, and growing each project as if it were our own. We have over four years of experience in the blockchain industry, as well as over fifteen years of product experience in the team. Also, we know how key technologies work and how to implement new ideas and create successful projects.
So ping us for a free consultation, we are here to help. And if you have any questions regarding the dedicated teams feel free to send us an email to [email protected]