Maximize ROI with Outsource Dedicated Development Team: A Complete Guide

Introduction:

Do you know that U.S. markets outsource over 300,000 jobs every year? Outsourcing is a part of today's business to run operations smoothly and get better returns on investment. 24% of small businesses prefer outsourcing to improve operational efficiency and productivity. Furthermore, one survey states that IT services and accounting have been the most outsourced jobs in the market since the past years. Relying on internal teams for all operations is impossible and obviously, a bad idea as it impacts the productivity and quality of the service.

If you are looking to enhance your ROI and hire the best outsourcing development team, then you have come to the right place. This article discusses the important factors, benefits, and tips for Hiring Dedicated Developers to drive more ROI. Let's dive in!

What is a Dedicated Development Team?

Let's understand a dedicated team model in simple words. It is a software development approach in which a group of specialized professionals is allocated to work on a specific project or for a particular client. It's like having a personal service exclusively for clients. It can be anything designing, testing, development, project management and more.  The dedicated team is not allocated to other clients and stays committed to delivering exceptional service within the deadline. 

Hence this approach is best for deep project engagement, scalability, and flexibility, resulting in superior, personalized solutions that meet the needs of the client.

Brief about ROI and outsourcing

ROI and outsourcing are interrelated. Your business profit will depend on the service you outsource. Obviously, outsourcing is the best option to get more profit, which is return on investment(ROI). You can save unnecessary expenses on the project and get the project done at reasonable rates within the assigned timeline.

Outsourcing benefits your business in numerous ways:

• Access to a wide range of expertise
• Cost-effective option
• Can be scaled up and down according to project needs

Example: 

Suppose you are developing an app for a client, when you outsource that app development project to a dedicated team, you don't need to hire dedicated developers with a fixed salary. It saves money and time for training, infrastructure, salaries, buying advanced technologies, and more.

Why is pre-planning crucial in maximizing ROI?

Pre-planning is the first step to do before beginning any development project.  Once you have a clear roadmap, you can easily explain to the team about the project to align with the business goals. Keep these things in mind during your pre-planning phase, this will surely help you maximize your ROI:

• Define the project objectives clearly
• Know your KPI(key performance index)
• Identify your dedicated expert's needs based on service

 Factors that Impact ROI in Software Development

Software development includes various things, and it's important to balance everything to ensure high-quality project delivery on time. Below are some of the essential factors that you must keep in mind to achieve higher ROI. Let's dive in!

• Time-to-Market

Time to market refers to the quick entry of the product launch in the market. It's like a first come first serve, the faster you launch your product, the higher the revenue.  With effective project management and a well-planned development process, you can capture the right spot in the market before the competitors because you are serving your customers earlier than others in the market.

• Quality of the Product

Clients can manage a little bit of delay but never compromise on quality. Quality is very important because it will affect your customer satisfaction and overall ROI. When you deliver high-quality software, the customer is likely to come back and give positive reviews. Overall, it attracts more users, motivates them to write positive testimonials, increases revenue, and provides a strong market reputation.

• Development and Maintenance Costs

If the development and maintenance costs of software are high and ongoing, this will significantly result in less ROI. Hence, you must properly manage overall development costs and resource usage and include other maintenance costs in advance in order to achieve stable ROI with a successful project.

Focus on building good and well-performing software so that there is less maintenance and rework required.

• User Experience and Feedback

User feedback is an important part of the development cycle as it directly influences customer satisfaction and impacts ROI. User experience is vital in customer retention and ROI because the better quality you offer, the more users you will attract and the more revenue you will drive.

It also helps to fulfill the room for improvement by adding the features the user suggested, delivering what exactly they wanted.

• Outsourcing vs. In-House Development

ROI also depends on whether you choose to outsource the project or hire an in-house employee. Outsourcing is definitely the best option to reduce expenses while having access to specialized skills, but it can lack availability. When you have an in-house expert, you can meet the accurate goals of the software development as the developers are present in the office.

• Risk Management

Risk management is equally crucial as it allows you to identify risk areas, technical challenges during development, overspending on budget, timeline delays, and more. It helps to execute projects within a timeline, hence enhancing the ROI. 

• Market and Competition

There is tough competition in every industry, hence it is important to analyze unique features, target audiences, and demands to achieve greater ROI. Make your software unique. It should have different features from other competitors in the market, and launching it early has a higher chance of ROI.

• Scalability and Future-Proofing

The software should be scalable and flexible, allowing users to upgrade or downgrade functionalities according to their needs. This helps the software adapt to evolving needs and handle increased demand over time. It will save redevelopment costs and time, resulting in higher ROI.

Benefits of hiring a Dedicated development team for maximizing ROI

Understanding the benefits of hiring a Dedicated Development Teams will help you to achieve maximum ROI by choosing the right approach according to your project needs. Let's jump into the top benefits of how a dedicated team helps maximize ROI.

1. Specialized Expertise

When you hire specialized expertise, you can easily offer your clients customized solutions to fulfill their business objectives. Experts have deep knowledge and advanced skills, so this will reduce development time, minimize errors, and enhance software functionality. Ultimately, you can get more return on investment as an expert will be capable of handling everything reliably.

2. Cost Efficiency

With dedicated teams, you can avoid overhead costs like hiring and training in-house staff because they are already experienced. These developers work on a fixed budget to deliver the best results on the given timeline. 

3. Flexibility and Scalability

You don't need to worry about flexibility and scalability as the dedicated teams can quickly adapt to the changing project requirements and work on the product to upgrade and downgrade according to the needs. Hence you can always walk in the competitive changing world and achieve greater ROI.

4. Focus on Core Activities

Your half job is already done when you have outsource your development project to right team. Hence you can sit back and relax. Your in-house team can work productively and focus on other core activities of the organization with proper planning.

5. Faster Time to Market

The dedicated teams are capable of meeting project timelines to ensure high-quality development and fast product launches. As the dedicated team is specifically assigned to work on individual projects, the development goes more accurately for on-time delivery. Early launching helps secure a good marketplace and generate revenue sooner.

6. Long-term Partnership

 There are also chances of a long-term partnership with a dedicated team when you work with the expert team for some time. They have a good understanding of your organization and other needs. So, due to trust, and consistent delivery of high-quality solutions, it helps in maximizing ROI over time.

Drawbacks of Hiring a Dedicated Development Team

1. Confusion in Choosing the Right Vendor

It can be confusing to choose the dedicated team that fits your company's goals and requirements. There are wide range of choices available so choosing the best one can be time-consuming and you might need to spend money and some effort.

2. Time-zone Difference

As there are developers available globally, you might also need to hire software developers who are outside the country to achieve the project goals. Hence there can be time-zone differences, cultural difference and many variations.

3. Not Suitable for all Kinds of Projects

Hiring a dedicated team can be costly for short-term development work and hence not suitable for all kinds of projects. As it is fixed-budget work, you need to hire a long-term committed developer team.

4. Communication Problem

When the project is outsourced, mainly the main source of communication is email or other project management tools like google meet, skype, slack, etc. hence this can lead to a communication barrier as it is not possible to schedule meetings and explain the specific requirements or task.

Choosing the Right Outsourcing Partner

The overall outcome of your project will depend on the outsourcing development team you hire. It is important to stay updated with the software development trends to get the most out of outsourcing. The below tips will help you pick the right outsourcing partner for your project needs. 

• Research and find  the right outsourcing partner

Spend more time on researching the right outsourcing that has a good reputation and has good past records of delivering successful projects. Check their experience, and connect with past clients to understand whether they have handled similar projects like you as earlier. You can for an interview or some skill test to pick the best development team.

• Setting up effective communication channels

You must consider communication channels to have seamless collaboration throughout the project work. Suppose if you are hiring US, or UK, you must decide a particular time or a communication medium to be in constant touch. Discuss all the project management tools and communication tools during the first meeting for smooth collaboration.

• Establishing clear project milestones and deliverables

Have a clear project goal before handing over the project to the outsourcing team.  Discuss the entire phase of the project like what will be the technology and software development tools used. Discuss what you expect from the project and mention important points.

• Managing cultural differences and time zone challenges

Before making the deal with an outsourcing partner, discuss how you will be managing cultural and time zone differences. smooth communication, alignment of work ethics, and effective collaboration are the important factors that will help to reduce challenges and enhance productive work.

Why is Managing the Outsourcing Process Important and How Does it Impact Costs?

Lack of proper project management can impact ROI and can result in poor development. Below are three basic things you should keep in mind when managing the outsourcing process.

• Identify your goals and expectations

You know your goals and expectations better so clearly outline the specific features, deadline, quality of standards, backend functionality and other securit features to the outsourcing partner.

• Use project management tools

Invest in good project management tools for seamless communication and track progress. It will also help you share any files or documents easily and notify the entire development team about important messages.

• Stay in touch with regular updates

To ensure you are meeting the project requirements, schedule regular meetings to discuss the issues and progress status of the project. Have clear and honest communication to ensure positive communication.

A Dedicated Development Team or a Fixed-cost Contract?

There is a slight difference between Dedicated Development Teams and fixed development contract. Dedicated  development team are best for the organization who are tight on budget and want a well-qualified team with all specialized tools.

A fixed cost contract is suitable for the short-term projects who has fixed deadlines with outlined projects. It is suitable because there are fewer chances of changes because the developer is free once the fixed contract is over. And there is also a chance that you may overpay.

Why choose Manektech as your Software Development Partner?

Manektech has been in the outsourcing industry and recognized as the topmost software development agency in USA since ages and helped businesses globally to thrive their goals and requirements.  Our experts can help you double your ROI with the best-dedicated development team.   We have expertise in using various technologies and can assist you with the best development solutions. Whether you are a startup or a well-established business, we have a solid dedicated team for every business.  Reach out to us to Hire dedicated developers perfect for your outsourcing project. 

Conclusion

I hope you find the above article helpful in choosing the right dedicated team to achieve your development goals. Hiring the right development company is the first and most important step in unlocking your business potential and completing the entire development process easily. Consider the above factors and drawbacks to choose the best for your business.