How Much Will It Cost to Hire Dedicated Development Team?

Software design team working on a project

Outsourcing has become a very popular solution for many companies all over the world that are looking for the best answer to the question of how to hire software developers. It is not always feasible to expand your in-house teams with additional specialists, especially when you know that you require their skills only for some project tasks. Hiring dedicated development team can be a very good variant regardless of the industry that you work in. Among the companies that today hire dedicated development teams, there are a lot of startups, non-tech businesses, and IT firms.

But let’s dive deeper into this topic to understand whether it will be sensible for you to hire dedicated development team.

Dedicated development team composition

First of all, it is crucial to understand that hiring dedicated developers presupposes establishing cooperation with an outsourcing agency that will support you during the entire process. When you share your requirements with this company, its specialists will start looking for candidates to join your team. They will analyze candidates’ skills, knowledge, previous experience, and expertise in some particular business domains. All recruitment, onboarding, and other administrative and financial tasks won’t be your responsibility. You will just sign a contract with your outsourcing partner and pay for their services as a whole.

After you conduct interviews with the candidates and choose the best experts, your team will be created and you can start working with your remote developers.

It is crucial to mention that your dedicated team can include not only frontend, backend, or mobile developers. You can also ask your partner to invite QA engineers, designers, business analysts, testers, project managers, tech support specialists, and DevOps to join your team. Moreover, if during the development process, any new requirements appear, it won’t be difficult to change the team composition.

The number of team members can be different depending on your needs: from just two people up to ten (or even more in some particular cases).

How will the costs be calculated?

When you hire dedicated development team, it will be important to understand how much you will need to pay. The costs will consist of two components: team members’ salary and the vendor’s margin. In your contract, the size of this margin should be clearly written. Some agencies indicate their fees as a separate line in their invoices which makes all calculations quite transparent.

The salary of developers is usually calculated either in accordance with the fixed price model (when the amount is set beforehand) or the time and material model. The second option is based on paying a team for hours of their work that have been necessary for fulfilling the set tasks and for the materials that have been used. This model is especially useful when the scope of the project is not clear from the very beginning and you can’t precisely estimate the volume of work in advance.


Regardless of the payment variant that you prefer, when you hire dedicated development team, you can be confident that a high level of transparency will be ensured and there won’t be any hidden costs, which means that you will have the possibility to efficiently plan your budget in advance.

Thanks to the flexibility related to the team composition, you can also manage your costs and the development process in general by expanding or reducing your team when it is required.

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