Hiring a dedicated development team: costs, models and pitfalls
What is a dedicated development team?
A dedicated development team is a group of engineers employed by a partner company but working full time on your product, under your direction. Unlike fixed-price outsourcing, you control the backlog and priorities; unlike hiring, you skip recruitment, payroll and notice periods. It is the model most scale-ups and enterprises use to add capacity quickly.
Dedicated team, staff augmentation or fixed-price project?
Each model suits a different situation.
- Dedicated team: long-running product work where the roadmap keeps changing.
- IT staff augmentation: specific skills for a defined stretch, such as a migration or a release.
- Fixed-price project: a well-defined scope with a clear finish line, such as a website or an MVP.
How much does it cost to hire dedicated developers?
Our published monthly rates for a dedicated engineer (up to 160 hours a month) are US$2,000 for a junior developer, US$3,000 for mid-level, US$4,500 for senior and US$5,500 for a tech lead or architect. Rates assume your work runs in our normal working hours with a daily overlap window. Extended overlap, onsite work or specialist requirements can carry a premium, which is explained and confirmed in a written quote before work starts.
How do you avoid the usual outsourcing problems?
The common failures are high turnover, weak communication and knowledge that leaves with the engineer. You interview and approve every engineer, a delivery manager tracks velocity and quality, knowledge is documented continuously, and any engineer who is not working out is replaced at no cost.
