A 360 Degree Overview Of Dedicated Development Centers In 2021

When companies first started to outsource their software project, dedicated development centers were all the rage. Many tech startups that survived the 2008 Global Financial Crisis were eager to build dedicated development centers (DDCs) or offshore dedicated development centers. Ten years later, the offshore software development center concept aims at a post-crisis revival in this current pandemic.

In the 1990s, the economic boom had strengthened outsourcing as a method used by tech companies and businesses with no IT experience. Software outsourcing allows companies to prioritize cost reduction, increased flexibility, and grow. 

Software outsourcing partnerships are now evolving from short-term projects to long-term and value-based software development partnerships.

A 360 Degree Overview Of Dedicated Development Centers In 2021

How do project-based outsourcing functions?

So, the client shares the same project goals with the outsourcing firm. The outsourcing service provider creates a detailed set of technical requirements approved and revised by their clients. The outsourcer then sets up a team of experts to carry out the project. Both parties regularly communicate during the developing process until the client gets their customer solution. The cycle continues with new customers and new projects.

The most common outsourcing pricing option is the fixed cost. This option works if you (as a client) have well-estimated and clear expectations of your vendor and the development team. But if your software development needs constant changes, then you should consider other pricing options. 

What’s a dedicated development team?

While there are slight similarities between dedicated development teams and software outsourcing development teams, there are still some dissimilarities. 

Both terms indicate a team that will help develop your software solution, but outsourcing teams are more like “mercenaries.” They will work based on the technical requirements and aren't involved in your businesses. The outsourcing team only assists the company in a short time.

On the other hand, the dedicated development team handles projects that are much longer in nature. You can think of a dedicated development center and dedicated development team as an extension of your business with remote workers to manage everything related to IT. The team of experts is selected based on your requirements. Sometimes, if you want, you can choose to manage the unit by yourself or appoint the dedicated development center’s project manager to be your primary contact point. The dedicated development team usually works in the dedicated development center’s offices. In addition, the team is constantly communicating and establishing close working relationships with your in-house team. The dedicated development team typically has a complete understanding of your business and strives to help you achieve your goal. Even if your dedicated development team locates in another continent, they are still very involved in your business. 

So, in simpler words, a dedicated development team is an outsourcing development team, but an outsourcing development team is not necessarily a dedicated one.

Dedicated development center as a business model

The dedicated development center will discuss the business’s needs, vision, and product to identify the best structure for the dedicated team. The service provider will then handpick the most suitable candidates to build the software development team for you, who will be integrated into your company’s workflow, or they can work independently on other long-term software development projects. 

A dedicated development center is a cost-effective way of outsourcing your software projects. If you’re running a project that will cost you more to hire full-time developers, then a dedicated offshore development center team is your go-to option. They have a very optimal and transparent pricing system; the monthly payments will depend on the team size; you’re expected to pay for members’ salaries, service provider’s fee, administrative overheads included.

Advantages Of A Dedicated Development Center In 2021

Most global businesses are forced to cut down costs and optimize their budget due to the CVID19 outbreaks; the dedicated development center business model has become a favorable solution for many businesses in the upcoming years. Here are six reasons for that:

1. Expertise

The main reason for reaching out to an offshore dedicated development team is to access the global talent pool. Talent acquisition in the local pool can be a challenge in the current situation since the local market has become more competitive than ever. By reaching out to software outsourcing service providers, you’ll acquire suitable exports without investing extra in staff training and onboarding process. All you have to do is list out the expected level of expertise and experience, and the dedicated development center will offer the high-level specialists.

2. Cost efficiency

Like we have mentioned earlier, the dedicated development team model offers you cost efficiency. In the U.S and Canadian markets, the software developers’ hiring rates are repetitively high, making the labor market in this area less attractive for those who are on a tight budget or simply just want to save money. Besides, when hiring offshore dedicated development teams, you don’t have to worry about the holiday and sick payments, insurance, equipment maintenance, hiring and onboarding expenses, etc, since they are all covered by the dedicated development centers. 

3. Fully involvement and control

If a software outsourcing team acts more like a “mercenary troop,” a dedicated team will give you their 100 percent commitment with advice and recommendations that can improve your software solution. Moreover, unless you decide to delegate your authority to the dedicated center’s manager, you’ll have a full control over the hiring, onboarding process, altering the project’s direction, and administrative issues without extra expenditures. 

4. Increased productivity

As you’ve moved your software development projects to the experts, you’ll leave space for your in-house team to focus on other critical business tasks, and with the dedicated teams staying focused on one project 100 percent, you'll increase productivity.

5. Long-term engagement

If you’re looking for a long-term collaboration with stability, you can sign a contract with a dedicated development center. A dedicated team can correspond to your skillset requirements, have hands-on experience with the right tech stack, and blend in well with your corporate culture and vision will strengthen your market position. 

6. Faster to market

It is the fact that hiring a team of developers who have experience working with others will save you a bunch of time. Skipping the early attrition that all freshers undergo will boost your time-to-market. It is proven that having a 50 percent increase in your software developers’ team familiarity will reduce the coding mistake significantly by 19 percent and save up to 30 percent of the budget.

Startups and small businesses seek cost-efficiency, flexibility, and expertise in their outsourcing projects, which DDCs offer. However, startups that are not looking for long-term collaboration with a third-party service provider should look at another software development engagement model.

Conclusion

With the current global crisis, all businesses have to cut down the cost, but the challenge is to save money while not compromising your software’s quality. Lookup for top dedicated development centers to have more extensive knowledge of what they do, how they can help you, and the medium rates as well.

Contact us if you’re interested in hiring a dedicated team of software developers possessing expertise in many different industries. We’re among the top software companies in Vietnam; we do offer software outsourcing services to many international clients!