IT Outsourcing Model for Hiring a Development Team

IT Outsourcing Model for Hiring a Development Team
N-iX
1970-01-01T09:27:24+00:00

If you are considering hiring a development team or transferring your development center nearshore (Ukraine, Poland, Romania, Bulgaria) or offshore, Dedicated Development Team (Client Own Development Team) is the engagement model you will usually be offered by IT outsourcing companies. This post is ...

IT Outsourcing Model for Hiring a Development Team
By Kateryna Dmytriyeva January 23, 2015

If you are considering hiring a development team or transferring your development center nearshore (Ukraine, Poland, Romania, Bulgaria) or offshore, Dedicated Development Team (Client Own Development Team) is the engagement model you will usually be offered by IT outsourcing companies. This post is meant to be a brief overview of the model and to give you an “at a glance” look without overwhelming you with details.

There are many ways service providers call Dedicated Development Team and it is often confused with the Time-and-Materials IT outsourcing model

Dedicated Development Team (DDT) – also known as Client Own Development Team, Offshore Development Team – is an engagement model in which an outsourcing company builds and hosts a team of full-time IT-professionals that work exclusively for customer`s projects on a long-term basis (12+ months) and serve as an extension of customer’s in-house R&D. DDT is often confused with Time-and-Materials model, in which a company hires hourly-based, part-time of even full-time dedicated developers on the provider’s side for a short-term period.

Dedicated development team is a solution for companies that have difficulty attracting good developers in their home country.

DDT is the most efficient way to benefit from a foreign talent pool. It works well for companies that can’t find good developer talent in their home country because of lack of technical specialists, as well as for those that suffer from high cost of development as in London, New York and other large hubs. Additionally, a nearshore/offshore development center or team is a good option for companies that need to change their in-house team configuration often, but are not able to do so due to government regulations, as it is in Sweden.

A nearshore/offshore development team is an effective way to extend in-house R&D.

Dedicated Development Team allows to keep full management control over the project and team, while contractor is responsible for recruiting, seamless integration into customer’s in-house team, infrastructure, knowledge sharing and administrative support. At N-iX we also provide supervision and project health monitoring by our Delivery/Account Managers. Dedicated team or Own Development Center directly reports to client`s company and becomes a part of its corporate culture and policies. They use the same development methodologies and practices, technical platforms, workflow tools and with time become fully integrated with the company and fully committed to customers goals.

Dedicated Development Team is 60% more cost-effective for projects longer than 12 months.

Among other advantages, Dedicated Development team is proven cost-effective due to minimization of provider’s administrative expenses and managerial overhead. As compared to other widely-used IT outsourcing models (Fixed Price, Time-and Materials), Dedicated Development Team is 60% more cost-effective for projects over 12 months.

IT Outsourcing Model for Hiring a Development Team

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By Kateryna Dmytriyeva January 23, 2015
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About N-iX

N-iX is an Eastern European provider of software development services with 900+ expert software engineers onboard that power innovative technology businesses. Since 2002 we have formed strategic partnerships with a variety of global industry leaders including OpenText, Novell, Lebara, Currencycloud and over 50 other medium and large-scale businesses. With delivery centers in Ukraine, Poland, Bulgaria, and Belarus, we deliver excellence in software engineering and deep expertise in a range of verticals including finance, healthcare, hospitality, telecom, energy and enterprise content management helping our clients to innovate and implement technology transformations.

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