The dedicated teams business model works especially well for companies that are planning to take on long-term, complex projects, with many unknown variables, or that are looking to expand their businesses or teams, while also filling skill gaps, and possess the appropriate budget for it.
But whatever their reasoning, organizations that consider hiring a dedicated team must be aware that, similar to any other business model, the dedicated team model features both pros and cons. Here are a few of them:
Pros
Cost efficiency
One of the most noteworthy advantages of the dedicated team business model is cost efficiency. Not only does the hiring company elude expenses occasioned by an otherwise time-consuming recruitment process, but it also benefits from lower rates. A dedicated team member’s salary is significantly lower than that of any other local professionals, making this business model that much appealing to businesses of all sizes.
Scalability
The next advantage on our list is scalability. The dedicated team model allows hiring companies to add or remove specialists to their team, whenever project requirements impose it. This way, contracting businesses are able to respond to any changing demands in a timely manner, and achieve their goals successfully.
Perfect alignment with company goals
Speaking of goals, another great benefit of collaborating with a dedicated team, is that this type of team is perfectly aligned with the hiring company’s business goals. Its members are solely invested in the project that they’ve been assigned with, and work towards completing their tasks, just as if they were internal employees.
Seamless coordination between internal and external teams
Such a tight collaboration will in turn bring many perks as well; internal and external teams coordinate their actions seamlessly, communicate efficiently, and manage to get things done within the requested time frame, with no delays. Moreover, teams will be participating in meetings, in which they will be encouraged to point out company weaknesses or express new ideas.
Acquired knowledge
The dedicated team consists of highly skilled professionals, handpicked to fit the collaborating business’ needs, for whom you would have otherwise had to conduct an extensive search. Having access to such talented specialists benefits your already existing employees, who can easily learn from their remote colleagues and acquire a more profound domain expertise.
Cons
Unpredictable budget
Although the hiring company only pays for the fixed dedicated team members’ salaries and vendor’s fee, not being able to predict the project’s extent and changes in staff, makes companies unaware about how much they will end up paying. This uncertainty does not allow companies to establish a clear budget, and may cause them some headaches in the end.
Communication issues
Despite having communication channels at their disposal and using them on a regular basis, communication issues may still arise for
several reasons; and time-zone differences or linguistic obstacles are some of them. Working with a distant team is not always easy, especially if they’re in a completely different time-zone, which implies careful planning and a better organization of the team’s schedules.
Trouble with team member’s morale
Sure, having professionals focusing only on specific tasks is great for your company, which benefits from their complete attention, but sometimes it is not so great for them. Dedicated team members have superior skills and can get bored with dealing with the same assignments every day, this monotony potentially leading to a decrease in their productivity.
Conclusion
The dedicated team model brings many advantages to the table; and cost efficiency, flexibility and scalability, domain expertise, and perfect alignment with the hiring company’s goals are some of them. However, much like there are always two sides of the same coin, the dedicated team model has disadvantages as well. From communication issues to a variable budget, these risks must be taken into account before embarking on the dedicated team model journey.
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