How Can Hiring Dedicated Developers Reduce Development Cost?

Worried about continuously increasing software development costs? Hire dedicated developers to significantly reduce your development costs.Here's how!
Hire Dedicated Developer
20May May 20, 2021

By: Krishnendra | Views: 606
Mobile App Development | 5 Min

Developing a custom website or application for your online business can be a costly affair. Unforeseen high development costs serve as a barrier to your success and can severely hurt you, especially if you are a startup or a small business with a limited budget.

Fortunately, there is a way out. By hiring dedicated developers for your project, not only can you reduce the cost associated with software development but also can enjoy added advantages like access to a variety of skills, better control and flexibility, a greater focus on business, and so on. Below are some statistics to back up the statement.

According to a report from Statista, cost-cutting is one of the top reasons companies outsource their services to a reliable managed IT services provider.

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Another global outsourcing survey carried out by Deloitte reveals that cost reduction is a primary objective of outsourcing.

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Even the numbers say that you can save up to 70% of your development costs by working with a dedicated team. Let’s understand how teaming up with dedicated developers can significantly reduce your overall development cost.

Highlights

6 Key Factors Raising the Cost of Projects

Before you understand how dedicated developers reduce the overall development cost, let’s get familiar with all the factors that cause over-budgeting of projects:

#Lack of Planning

Poor planning and improper execution are two factors that often lead to higher development costs. Hence, before you even reach out to a developer, you should know your exact requirements and come out with a well-curated strategy to eliminate the extra cost of development.

#Miscommunication

Any form of miscommunication can cause your project cost to reach new peaks. Be it under communication, over communication, or micromanagement, a communication gap between the client and the developer can create fuss and lead to soaring development costs. This is precisely where dedicated developers come to your rescue as they ensure seamless communication.

#Lack of Testing

Overconfidence kills! If you don’t test the final product before its launch, you may discover bugs and other issues post-release, leading to unforeseen costs. Automated testing is imperative to ensure your project runs smoothly without any bags, and you’ll not face the ugly blame game situation.

#Sudden Damage or Malfunction

In any case, if an element on your website or application gets broken, damaged, or malfunctioned, you must replace or repair it at the earliest to get things back on track. Since these kinds of situations are often unexpected, you’re needed to allocate some part of your budget for such scenarios. Unfortunately, you have no option other than paying your developer for rectification, which increases the project cost way more than expected.

#In-House Delays and Interruptions

When you’re working with your in-house team, you may face various kinds of delays and interruptions. For example, if your in-house developers work on multiple projects simultaneously, they might give less attention to a particular project as they have to finish others on time. This may slow down the development speed and also affect the work quality. In other words, missing deadlines impacts the efficiency of working on a project and eventually increases development costs.

#Indefinite Project Duration

Usually, the cost of a project depends on how long it takes to complete. A longer life cycle will push out your budget unexpectedly and burden your pockets like never before.

Who Are Dedicated Developers?

Simply put, dedicated developers are highly skilled and experienced professionals you can hire to work on a particular project for an extended period on a regular and committed basis. They operate at a cost-effective rate and can be employed part-time, full-time, or hourly. They serve as a separate entity of your organization but collaborate seamlessly with your in-house team of professionals. Usually, a dedicated development team includes:

For instance, if you ever get stuck in the middle of doing one of your projects due to a shortage of skills, you can hire dedicated developers to carry out the project efficiently. With their updated knowledge of the latest trends and technologies, you’ll get the desired results in no time.

Why is Hiring Dedicated Developers the Best Option?

The main reason why most clients prefer hiring dedicated developers is that it is way cost-effective than hiring freelancers or arranging an in-house development team. Let’s take a look at these statistics:

  • 78% of business owners across the globe feel satisfied with their outsourcing partner.
  • According to another survey carried out by Clutch, 37% of small businesses currently outsource a business process, and 52% plan to do so in the coming year.
  • Another Deloitte survey found that around 53% of businesses outsource at least some of their IT functions.
  • 24% of companies outsource their services to boost work efficiency, and 18% say their goal is to receive expertise.
  • Amid the COVID-19 crisis, the global market for IT outsourcing is estimated at US$342.9 Billion. It is projected to hit US$410.2 Billion by 2027 and to grow at a CAGR of 2.6% between 2020 and 2027.

Thus, whether you are a startup or enterprise-level organization, outsourcing your projects to a dedicated team of developers is a wise option because it will be more cost-efficient and satisfying than handling in-house developers or freelancers.

8 Surefire Signs You Need to Hire Dedicated Developers

If you are looking for a one-word answer to cut the overall project development cost, outsourcing is the only option. Below are some obvious signs that indicate you need to hire dedicated professionals for your upcoming projects:

#Lack of Talent Pool

In today’s rapidly changing technological world, it’s not always possible to have the professionals possessing the expertise in your required technologies and tools at your disposal. According to a survey, over 22% of the CIOs find it challenging to arrange the right resources with the desired skill set.

This is where the need and demand for hiring dedicated developers come into the picture. So if you feel your organization has a shortage of essential skills, it’s a telltale sign that you need to hire dedicated developers with the required skill set to accomplish the task efficiently.

#Projects with Unclear/Changing Scope

In-house business analysts and project managers often fail to define the project scope clearly, leading to a longer development timeline. In such scenarios, hiring dedicated developers proves to be a profitable deal as you pay a fixed amount to them for the number of hours they work on your project.

Furthermore, offshore developers are flexible to any modifications in projects having an unclear scope. Also, you’re free to hire professionals from other countries at lower hourly prices, which helps you effectively eliminate cost deviations.

#Ineffective Utilization of Technology

The realm of software development is continuously expanding with the introduction of cutting-edge technologies, tools, platforms, and programming languages. To survive in the competitive market, you need to harness the true potential of modern technologies for your projects.

However, it is not always possible to have resources that specialize in all the trending technologies. If your in-house team lacks effective utilization of leading-edge technologies, you can hire dedicated developers to overcome this issue.

#Facing Difficulty in Paying Utility Bills

When working with an in-house team, you need to pay bills for office utilities like electricity, systems, working space, cooling, heating, etc. And several times, these bills go haywire. On the other hand, when you hire remote dedicated developers, you don’t need to pay for anything and save up to around $10,000 on office spending.

#Struggling to Retain In-House Talent

Retaining top talent has always been a challenging task for most businesses. To back this fact, a recent survey conducted by Stack Overflow reveals that over 60% of the on-job developers are open to new job opportunities in the market. Of course, this can be a drastically adverse situation for you as an employer, but you can overcome the tech-talent crunch by hiring external professionals.

#Not Meeting the Time-to-market Target

Time is of the essence! Finishing projects within the stipulated deadline is a matter of reputation and pride. Sometimes, your in-house team may be unable to handle complex projects as efficiently as required. If that is the case, you can hire an offshore dedicated development team to complete the project quickly.

#You’re a Company with a Low Budget

When you’re an organization that cannot pay high salaries to in-house developers, the ideal way-out is hiring dedicated professionals. The cost of recruiting these professionals is usually lower and doesn’t put a burden on your pocket. Also, it is suitable for companies that want to avoid the hiring process that requires a significant amount of time and money.

#You’re an Expanding Company

If you’re a growing business, you’ll need to hire more professionals. In such a scenario, a team of dedicated developers who are currently working or have collaborated in the past with your in-house team can help you onboard the new hires more efficiently. And if your dedicated team works from the location where your organization is expanding, it would be icing on the cake for you.

How Can Hiring Dedicated Developers Cut Your Project Costs?

The most significant advantage of hiring dedicated developers is that you can save a considerable amount of money on your software development. Wondering how? Here are the top five ways to answer how dedicated hiring is a cost-efficient alternative to the traditional in-house model:

#Get Rid of Extra Hiring Cost

Your project may require various skills and expertise, which your in-house team may lack. In such a scenario, recruiting resources full-time for that specific project may not be a wise and cost-effective decision.

Instead, you can hire dedicated developers on a part-time or hourly basis or even collaborate with any offshore development agency backed by a diverse range of professionals. This way, you can cut additional hiring costs and leverage their dedicated developers’ varied expertise and skills.

#Leverage Technological Expertise

When developing a customized solution for any business, you need in-depth technical knowledge, experience, and expertise. If you work with inexperienced or novice resources that are not fully equipped with all the technical skills required to create an outstanding product, you might not get the desired outcomes. Eventually, this leads to hiring dedicated professionals capable of building a top-notch quality tailored solution to fulfill the organization’s specific needs with 100% satisfaction.

#No Training Cost

IT is an ever-evolving industry. With new technologies popping up every day, you need to keep your in-house developers updated with the latest trends and technologies to survive in the cruel competitive market.

However, the truth is that training your in-house team (or recruiting new employees and then training them) for modern tools and technologies can significantly hamper your budget and is also quite time-consuming. Needless to say that you can avoid the cost of training by hiring experienced dedicated professionals for your project.

#Pay As You Go

Do you know that outsourcing has no committed investment? Yes, it’s true! While working with an in-house team, you have to pay for each resource utilized for the project. But, if you hire dedicated developers, you only have to pay for the outsourced services without any commitments.

Ultimately, it leads to lower development costs as you’re not going to utilize any extra resources. Additionally, if you hire dedicated developers for the long term, you can take advantage of their pay-as-you-go scheme with an hourly payment structure.

#Choose the Right Strategy for Your Project

If the project’s requirements and objectives are not clearly defined and understood, developers can commit mistakes while working on the project. These errors can increase the time involved in project completion and the project’s overall cost.

Fortunately, you can skip this scenario by hiring dedicated developers who hold years of experience, can readily understand the project’s specific requirements, and finish the task without making any mistakes, no matter how complex it is. Moreover, they can even suggest the best strategy for your project, thereby saving your time and money.

Other Notable Benefits of Hiring Dedicated Developers

Apart from significantly reducing the overall cost of software development, hiring dedicated developers benefits you in many other ways, like:

  • You have complete control and freedom over your project.
  • You get the desired project outcomes.
  • You can easily manage the dedicated development team. Assign the project, set a deadline, sit back and relax!
  • You get more time to focus on other crucial aspects of your business as dedicated developers can perform complex tasks independently without taking your precious time in the project or contract.
  • You have flexibility in every aspect of your project as dedicated developers exclusively work on your project.

Where to Find Dedicated Developers?

There are several ways to hire dedicated developers for your projects. Here are some of the top ones:

#Outsourcing Companies

When you don’t know where to hire dedicated developers, you can use the B2B research and review platforms, such as Clutch and GoodFirms, to find companies providing ‘dedicated hiring’ services.

#Search Engines

Alternatively, you can use Google or other popular search engines to discover such companies. Simply enter keywords like “hire dedicated developers,” “dedicated software development team,” and “dedicated development team,” and you’ll be able to find many companies.

#References

Finally, you can take recommendations from your references who recently hired dedicated software development teams. However, be sure to consider the type of projects they hired dedicated developers to work on and evaluate whether or not they are suitable for your project.

Once you find one or several companies that seem appropriate, follow these tips to hire the right dedicated developers for your project.

To Conclude:-

Continuously increasing development costs is one of the major concerns for startups and enterprises, but one can still reduce their project’s overall cost by joining hands with dedicated professionals. Hire dedicated developers on a part-time, hourly, or full-time basis to kick off your project today. Get it done within your budget and time frame, and save loads of money on your software development.

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