Need Help? A Dedicated Software Development Team Delivers!

1. Why Businesses Struggle with Software Development

A dedicated software development team offers a sustainable, scalable solution for businesses navigating today’s digital landscape. As industries increasingly demand digital solutions, many companies face challenges in hiring in-house teams due to budget constraints and a shortage of skilled talent.

Based on the Deloitte survey, 67% of executives now employ outcomes-based services, continuing the trend from traditional staff augmentation to outcomes-driven approaches. With cost reductions now the primary driver for outsourcing, C-level executives are increasingly prioritizing skilled and agile engineers in their outsourcing decisions. This increases the need for agile development teams in many industries.

By partnering with a dedicated software development team, businesses can access specialized expertise, maintain flexibility, and achieve cost savings, effectively addressing these challenges.

Further reading: Hire a Dedicated Development Team in Vietnam: The Guide for Australian, US, and EU Clients

2. What exactly is a dedicated software development team?

A dedicated software development team is an external team of developers, designers, and project managers who work exclusively on your project. Unlike traditional outsourcing, where developers may juggle multiple clients, a dedicated team focuses solely on your business goals.

Further reading: 7 Key Roles In Every Dedicated Software Development Team

Who is in a dedicated team?

Typical structure of a dedicated software development team

How it functions:

1. You define your project needs—technologies, skills, timeline, and budget.
2. You get a tailored team—the outsourcing company assembles a team with the right expertise.
3. The team works as an extension of your company—they follow your processes, use your preferred tools, and align with your vision.
4. You have full control & flexibility—scale the team up or down as needed.

Why it works:

• Long-term commitment—The team grows with your business.
• Profound understanding of your project—unlike freelancers who work short-term, a dedicated team becomes an integral part of your company.
• Full control & transparency—You oversee the development process just like an in-house team.

A dedicated team isn’t just outsourcing—it’s a strategic partnership that drives long-term growth. With seamless collaboration, deep project alignment, and full transparency, this model empowers vendors to scale smarter and innovate faster.

By aligning with your vision and operational needs, Kyanon Digital ensures agility, efficiency, and long-term success in an ever-evolving digital landscape.

3. Why Businesses Transition from Freelancers to a Dedicated Team

Many businesses start with freelancers due to budget constraints but later realize the limitations:

1. Freelancers lack long-term commitment: They work on multiple projects, making it difficult to maintain consistency.

• Example:

In its early days, Skype relied on freelance developers to build its platform. However, as Skype grew, the need for long-term commitment became apparent. To ensure consistency and handle complex scaling, Skype transitioned to a dedicated development team, which played a critical role in its global success and eventual acquisition by Microsoft for $8.5 billion.

2. Managing multiple freelancers is a challenge. Coordinating different time zones, work styles, and deadlines can slow down progress.

• Example

When Uber started, it used freelancers for some of its app development. As the platform expanded, managing a fragmented workforce with varying schedules and time zones became difficult. Uber switched to a dedicated software development team to streamline communication and ensure faster feature releases. This shift allowed Uber to scale rapidly and become a leader in the global ridesharing market.

3. Scalability is difficult. If your project grows, you need to find and hire more freelancers, which takes time.

• Example:

Initially, Spotify outsourced some of its tech work to freelancers. But as the music streaming service expanded, scaling became a problem. Managing freelancers for rapid expansion was inefficient. Spotify moved to a dedicated development team to maintain quality, quickly scale new features, and meet the growing demands of its 400 million users.

4. Dedicated Team vs. Other Models: What’s the Difference?

Comparison of pros and cons between dedicated team vs. other models

Further reading: In-house IT Team vs. IT Dedicated Team: Which is the Optimal Choice for Your Business?

5. The Hidden Costs of Not Having a Dedicated Software Development Team

5.1. Hidden Costs Without a Dedicated Software Development Team

In today’s fast-paced digital landscape, businesses face critical decisions regarding their software development strategies. Opting not to have a dedicated software development team can lead to numerous hidden costs that impact both finances and operational efficiency.

According to Deloitte’s 2022 Global Outsourcing Survey, with strategic value becoming even more crucial, 70% of businesses now list cost reduction as simply one of several considerations in their outsourcing choice. Let’s break down the actual financial picture for every alternative.

Source: Data synthesized from IBM System Sciences Institute, Ponemon Institute, and Standish Group CHAOS Report

Without a dedicated software development team, many hidden expenses—including financial losses, operational inefficiencies, and lost market opportunities—may result. Companies have to review their development plans closely and make sure they have the resources and expertise necessary to deal with the complicated nature of current software specs.

Futher reading: 5 Best Practices For Having Success With A Dedicated Software Development Team

5.2. The Dedicated Software Development Team: Strategic Balance

Working with an offshore development team or outsourced development team through an IT outsourcing company offers a strategic middle ground, combining cost efficiency with quality assurance.

Cost Structure of Dedicated Development Teams

Source: McKinsey Global Institute Analysis, Accelerance Global Software Outsourcing Rates Report 2023, Arounda

6. Why Businesses Are Shifting to Dedicated Teams with Kyanon Digital

The global IT outsourcing market is experiencing rapid growth, valued at approximately $769.7 billion in 2024 and projected to exceed $900 billion by 2027, with a CAGR of 5.54% (Statista). Within this expanding sector, IT services dominate, making up 75% of global outsourcing contracts.

Popular forms of outsourcing models through companies. Statista

One key driver of this growth is the shift toward dedicated development teams, as organizations seek scalability, efficiency, and specialized expertise. Recent studies show that 96% of organizations leverage third-party outsourcing, with an increasing emphasis on extended workforce strategies to navigate the complexities of modern talent sourcing.

Unlike traditional staff augmentation, dedicated teams align closely with business goals, delivering results through outcome-based models rather than just supplementing manpower.

Businesses want solutions that are flexible and deliver value. As a result, the dedicated development team model is becoming an important part of IT outsourcing and a solution that is ready for the future for large companies around the world.

6.1. Scalability & flexibility

Dedicated development teams offer scalability and flexibility, allowing businesses to quickly adjust team size based on project needs without lengthy hiring processes. This cost-effective approach eliminates overhead costs, enabling faster adaptation to market shifts and customer demands.

With seamless integration into in-house teams, dedicated teams reduce risks related to talent shortages and hiring uncertainties, ensuring smooth collaboration and consistent results.

How Parcel Perform Scaled Faster with a Dedicated Offshore Team

Parcel Perform, a cloud-based shipping solution for e-commerce, needed to scale its development team to support rapid growth. They required help in:

• Expanding their platform.
• Integrating with logistics providers like DHL, UPS, and FedEx.
• Developing new features to meet customer needs.

How dedicated team of Kyanon Digital can help to integrate Parcel Platform

Solution: Kyanon Digital built a dedicated offshore development team for Parcel Perform. The team started with three engineers and grew to six over the course of six months. Kyanon Digital ensured smooth integration with Parcel Perform’s internal team through a structured knowledge transfer program, allowing the offshore team to take more responsibility over time.

Outcome

• Scalable development: The team grew to meet demands.
• Successful 3PL integrations: The platform expanded with multiple logistics providers.
• Faster product development: New features were rolled out quickly.
• Improved time-to-market: Agile methods allowed faster development cycles.
• Better operational efficiency: Streamlined internal processes.

Parcel Perform achieved faster growth and strengthened its platform with Kyanon Digital’s dedicated development team.

6.2. Cost-effectiveness

Dedicated software development teams offer significant cost-effectiveness by eliminating expenses like office space, equipment, and employee benefits. Offshore teams provide access to top talent at competitive rates, delivering high-quality results without the high costs. This allows businesses to optimize their budget, reinvesting savings into areas like R&D, marketing, or scaling operations.

How Kyanon Digital Optimizes Costs & Elevates Temasek’s Intranet System

needed a cost-effective solution to maintain and enhance its intranet system, built on PHP and.NET. Ensuring system stability, security, and continuous improvements while keeping costs under control was a key challenge, requiring long-term technical expertise and proactive management.

Solution:

A dedicated team was assigned to provide ongoing support, bug prevention, and security enhancements. Beyond maintenance, Kyanon Digital took a proactive approach by recommending and implementing new technologies, including low-code and no-code solutions, to future-proof the system. Strategic upgrades and new module developments were also introduced to meet the laboratory’s evolving needs.

Outcome:

• Stable & high-performing system—Ensured seamless functionality and security enhancements.
• Optimized operational costs—freed up budget for core research initiatives.
• Long-term partnership—8 years of continuous trust and collaboration.
• Strategic adoption—Client embraces Kyanon Digital’s recommendations for future growth.

This enduring collaboration highlights Kyanon’s ability to drive efficiency, innovation, and long-term value for its partners.

6.3. Specialized expertise

Partnering with an outsourced development team provides you with access to a global talent pool, ensuring specialized expertise tailored to your project’s needs. This team brings diverse perspectives, fueling innovation and helping you stay competitive in the market, all while accelerating development and problem-solving.

How Leading Global Technology Company Using Dedicated Team

A leading global technology company needed to enhance its digital capabilities through interactive web applications, data analytics, and predictive models. However, they lacked the specialized talent and resources required to build and customize these complex solutions in-house.

Solution:
Kyanon Digital partnered with the company to build a dedicated software development team consisting of a technical lead, a digital consultant, software engineers, data engineers, and quality engineers. With expertise in ASP.NET, PHP, NodeJS, MongoDB, and other technologies, the team worked closely with the company to deliver tailored software solutions that addressed their specific needs and challenges.

How Kyanon Digital helps with a dedicated development team

Outcomes:

• The dedicated team developed interactive web applications and visually rich dashboards, enhancing decision-making through data-driven insights.
• The company was able to unlock additional digital capabilities and improve self-service analytics for their users.
• The solution accelerated product development, improved business alignment, and empowered the company to stay competitive in a rapidly evolving market.
• Access to global talent allowed the company to overcome resource limitations, fueling innovation and faster problem-solving.

6.4. Faster time to market

Both new startups and established companies depend on speed. Dedicated teams speed up development initiatives, therefore allowing faster remarks of Minimum Viable Products (MVPs) and other important projects.

This effectiveness offers a competitive edge in addition to meeting consumer needs right away. Reducing time to market helps businesses to seize new prospects and more successfully meet consumer wants.

Accelerating Time-to-Market for Mobile App Development

LeapForward needed a technology partner to quickly develop a new version of their mobile app to support injured workers while ensuring seamless integration and rapid delivery.

Solution:

Kyanon Digital formed a dedicated team of skilled developers, specializing in React Native and backend technologies, to accelerate the app development process using agile methodologies.

Screenshot of LeapForward app

Outcomes:

Delivering the app on time, featuring goal tracking, check-ins, educational modules, and personalized support. The reduced time to market enables LeapForward to meet consumer needs quickly and gain a competitive edge in the digital wellbeing sector.

6.5. Full project control

Working with these teams suits the corporate culture, goals, and standards by smoothly interacting with internal people through the culture, goals, and standards by smoothly interacting with internal people.

This integration ensures consistent project management, open communication, and cooperative effort. Companies keep control and guidance so that the growth fits their vision and goals.

Full Project Control in Building Key Financial Product

A financial services company needed a technology partner to develop three critical financial products: transaction monitoring, eKYC, and digital onboarding, all requiring seamless integration with their internal systems and strict adherence to regulatory standards.

Solution:

Kyanon Digital provided a cross-functional, dedicated team that closely collaborated with their client. Agile methodologies, including two-week sprints and continuous integration, ensured smooth communication and iterative development. This approach allowed their company to maintain full control over the project while adhering to their internal culture and goals.

Outcomes:

• Kyanon Digital has successfully delivered the first versions of all three products.
• The system has enabled seamless transaction monitoring, automated KYC compliance, and digital self-service onboarding.
• Ensured full project control, aligning the development with Cynopsis’ vision, goals, and standards for smooth integration and timely delivery.

How Kyanon Digital helps with a dedicated development team

Further reading: The Benefits Of Dedicated Team Model For Startup Agility

7. Industries That Benefit the Most from Dedicated Software Development Teams

Whether it’s for introducing fresh ideas, improving user interfaces, or offering strong security, a dedicated development staff is essential. Below, we will discuss the industries most impacted by software development outsourcing, along with the clear outcomes of collaborating with an offshore team.

7.1. Startups & Scale-ups

Often dealing with scarce finances and time constraints, these companies find it challenging to create products. Startups can leverage specialist abilities without in-house staff by collaborating with a dedicated software development team, thus pressing on worldwide talent.

Agile development teams’ adaptation allows businesses to easily proceed on their products, scale fast, and stay up-to-date with changing markets.

For example, at first, companies like Airbnb and Uber relied on outsourced development teams to swiftly grow and offer new capabilities that changed the industries they served.

Further reading: The Benefits Of Dedicated Team Model For Startup Agility

7.2. E-commerce & Retail

Providing swift, adapted service depends on creating perfect websites, mobile apps, and backend system integration. E-commerce companies may create user-friendly interfaces, maximize performance, and provide strong security for payment processing by means of a dedicated software development team.

Selecting an IT outsourcing provider with retail liquid expertise helps businesses keep ahead of their rivals and satisfy consumer expectations.

To keep their leading position in the industry, Amazon, for instance, has fast innovated and improved its platform by using software development outsourcing.

7.3. FinTech & Banking

While still following laws like GDPR and PCI-DSS, dedicated software development teams assist FinTech businesses in creating safe platforms, integrating payment systems, and improving user experiences.

For these companies, a software development outsourcing model provides access to top-notch specialists focused on developing safe, high-performance financial applications.

Two of the huge finance corporations that outsourced important development work to extend their services quickly while keeping top-notch security and compliance are Stripe and PayPal.

7.4. Healthcare & MedTech

From electronic health records (EHR) to online medical care solutions, the healthcare and MedTech sectors are experiencing an incredible digital revolution. But HIPAA compliance and other regulations complicate the creation of healthcare software. A dedicated development team contributes knowledge in the development of patient-focused, secure, regulatory-compliant applications.

Companies such as Cerner and Allscripts have used offshore development teams, for instance, to rapidly create innovative ideas in the healthcare sector, providing compliance and ensuring privacy of data at the same time.

7.5. SaaS Companies

For SaaS businesses, growth and constant innovation are undoubtedly critical. Maintaining operational efficiency while expanding can become difficult, though, as they grow. Dedicated software development teams let SaaS companies grow their development activities without interfering with their main operations. These teams provide specific knowledge to improve the operation of the platform, incorporate outside services, and create new features.

One well-known SaaS company that has quickly scaled its platform using software development outsourcing while upholding high standards is Salesforce. Using agile development teams helps SaaS companies to constantly enhance their product offerings, thereby satisfying consumer needs and industry expectations.

Salesforce Dedicated Team vs. Fractional Team Models

8. How to Find the Right Dedicated Software Development Team

8.1. Define Your Needs

Clearly specifying the needs of your project comes first before starting the hunt for a committed development team. Consider these important issues:

• The project’s range is what? Are you creating an enterprise solution, mobile app, or website?
• What abilities are required for the project? Do you need knowledge of particular technologies, including Angular, AWS, or React Native?
• Your company has goals? Is the aim innovation, scale, or improvement of customer experience?

An early-on definition of your needs will help you to clearly map out how you evaluate possible teams. Furthermore, a well-defined project scope will help you decide whether you need a software development outsourcing partner with broad knowledge or one focused on a particular sector or technology.

8.2. Research & Shortlist Vendors

Research possible vendors after you know exactly what your project needs. One should give numerous important factors some thought:

• Experience: The vendor’s company lifetime is how long? Do they know the particular field or technological stack your project calls for?
• Reputation: What remarks do past customers have of them? Could they perhaps send references or case studies?
• Portfolio: Does their portfolio of past work reflect your kind of similarity? This demonstrates their capacity to produce work of excellence.

Reliable websites such as Clutch, GoodFirms, or Upwork can provide insightful analysis of the standing of several IT outsourcing firms.

8.3. Evaluate their expertise

Reviewing the technical expertise of potential teams is crucial once you have shortlisted them. You should then look into:

• Tech stack: Do they have experience with the technologies your project requires, such as React, Node.js, or Python?
• Previously undertaken projects: Request case studies or samples of like work. This will help you to understand their potential for managing every aspect of your project.
• Industry knowledge: Whether in FinTech, healthcare, or e-commerce, does the staff fully understand the specifics of your sector?

A dedicated software development team with experience in your particular sector can often significantly improve the outcome of your project. To quickly scale their payment gateway solution, for instance, Stripe used an offshore development team, therefore providing excellent security and regulatory compliance.

• Countries attracting businesses for dedicated teams

Dedicated development team rates by region. Source: Intellisoft

When deciding where to hire an outsourced development team, location matters. Some countries have gained recognition for their ability to offer high-quality development at competitive prices.

Top markets for dedicated software development teams by industry in Asia

8.4. Test communication & collaboration

Good communication is critical to the success of any software development project. During the vetting process, pay close attention to:

• Communication skills: How responsive are they? Do they understand your project requirements and goals?
• Collaboration tools: What tools do they use for project management, such as Jira, Trello, or Slack?

Work culture is very important, as you’ll be working with this team for a long time, so they need to be technically skilled and easy to work with, ensuring smoother workflows and better project outcomes.

8.5. Start with a pilot project

Before committing to a full-scale engagement, it’s a good idea to start with a pilot project. This allows you to assess their performance, collaboration, and delivery timelines on a smaller scale, reducing the risk of major setbacks.

A pilot project is a fantastic way to validate the team’s capabilities without committing to a long-term contract upfront. It also helps you identify any potential issues early in the process, before they impact the full project.

Further Reading: 9 Main Factors Make A Great Dedicated Software Team

9. How to Hire Your Engineers with Kyanon Digital?

Step-by-step hiring dedicated team with Kyanon Digital

Conclusion

In today’s fast-paced business world, dedicated software development teams are a strategic advantage. They provide scalability, specialized expertise, and faster development at cost-effective rates, allowing businesses to stay ahead of the competition. By choosing the right team, clearly defining goals, and ensuring positive communication, your business can thrive and innovate for long-term success.

Are you prepared to expand your business with a committed software development team? At Kyanon Digital, we offer expert development solutions tailored to your unique needs. Whether you’re a startup, e-commerce brand, or SaaS company, our global talent pool can help you innovate, grow, and stay ahead of the competition. Contact us today to learn how we can transform your business with the right team and technology!

Further reading: Vietnam IT Market & IT Salary Insights—Extend Your IT Capabilities In Vietnam

Key Takeaways

Key benefits of dedicated teams: Scalability, cost-effectiveness, and faster growth

Why a dedicated team is your best investment:

• Hidden costs: Bug fixes, delays, and security breaches can drain your budget.
• Inefficiencies: Communication gaps and knowledge issues increase expenses.
• Scalability issues: Without a dedicated team, growth becomes costly and complex.
• Cost-effective solution: Offshore teams balance cost with quality for better results.
• Long-term stability: Dedicated teams ensure smoother operations and business growth.

Industries boosted by dedicated Development teams

How to choose the right dedicated software development team

• Define your needs: Clarify project scope, tech stack, and company goals.
• Research & shortlist vendors: Check experience, reputation, and portfolio.
• Evaluate expertise: Ensure technical and industry knowledge matches your requirements.
• Consider location: Countries like India, Vietnam, and the Philippines offer cost-effective, skilled teams.
• Test communication: Ensure smooth communication and collaboration tools.
• Pilot project: Start small to test performance before committing fully.

References:

Insight into the outsourcing development industry from:

• Deloitte Global Outsourcing Survey 2022
• Deloitte Global Outsourcing Survey 2024
• “Dedicated Software Development Teams: the Four W’s” highlighted the model of dedicated development team by Jay.devs
• IT Outsourcing—Worldwide by Statista

Examples of companies using dedicated team development from: 

• Five successful companies that outsourced their software development offshore, highlighted on LinkedIn
• Alibaba’s Success in Building a Multibillion-Dollar E-commerce Platform (AliExpress) Through Software Development Outsourcing, highlighted on LinkedIn

Cost of hiring a dedicated team:

• Birmingham council has to do accounts by hand after £38m software bungle from The Times
• Arounda highlights in “How Much Does It Cost to Hire a Development Team?”
• Cost range highlighted by:  McKinsey Global Institute, Accelerance Global Software Outsourcing Rates Report 2025