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A Dedicated Software Development Team For A Startup: Should It Be In-House Or Dedicated Development Team?

Technology and digitalization have changed the world radically in the last few decades. Together, both have changed millions of industries, and information technology industries are one of the key industries changed by technology during the past few decades. 

Companies are anticipating growing their business by building an application or site. An organization’s digital existence will aid them in reaching more consumers and procuring more leads and sales. 

To develop scalable and robust apps or sites, you need to appoint qualified and skilled programmers from a leading development agency. There are diverse recruiting models regarding software development that you can look up to. 

Some startups prefer an internal team, whereas some prefer a dedicated software development team. Nowadays, most startups are considering a substitute for the internal team model by choosing a dedicated team model to satisfy all their development requirements. 

In today’s blog, we will discuss the perks and downsides of both models to assist you in selecting one which perfectly suits your startup project needs.

In-House Or Dedicated Development Team: Which One To Choose For A Startup?

Below we have compared the traditional internal and dedicated team models with their pros and cons to let you know which is the ideal choice for your startup.

In-House Development Team

An internal team model is the most popular model as it offers the utmost trust to the companies. It is quite straightforward as it uses the internal crew for software development. 

Startups seek an experienced team that completely comprehends their needs and shares their vision.

What Is It Suitable For?

The internal team model is highly suitable for startups and bigger organizations. Each type of business can recruit an internal team of programmers to deliver the correct expertise and meet the firm’s effectiveness. 

This model is usually preferred unless the squad fails to provide the desired outcomes.

Pros Of An In-House Team Model

  • Transferable Standards And Skills

An internal crew is a great approach to guaranteeing continuity of development and product expertise. Nevertheless, you may have to bear the expenditures of leveling up the team and circumventing tunnel vision.

  • Rapid Changes

With an in-house team, you can swiftly change the project’s features, incorporate new ones, and converse about their technical background. Besides, the in-house crew generally resolves bugs faster.

  • Face-To-Face Communication

Being in the same workplace and having identical working hours makes the communication procedure easier, more comfortable, and clear. Face-to-face communication aids in enhancing efficiency and avoiding confusion.

Cons Of An In-House Team

  • Build The Team From Scratch

Making a professional internal crew takes a considerable amount of time and exertion. It takes a lot of work to assemble a tech squad with some genuine talents.

  • Higher Costs

You will not only pay your in-house team monthly salary but also added benefits such as health insurance, travel expenses, paid leaves, etc. Furthermore, you will have to pay office rent and technical equipment costs.

Dedicated Development Team

A dedicated team model is a kind of outsourcing in which you partner with a vendor to hire and co-manage specialists that work only with you. This model is ideal for large, extended projects and for accomplishing specific business objectives. 

This model offers exceptional skills, expertise, accountability, proper management, and reasonable cost. Startups having clear business goals mostly opt for this model to develop their projects.

What Is It Suitable For?

The dedicated software development team model is suitable for projects with a continuous workload. The dedicated staff identically serves the clients as internal staff.  

They help startups reduce the costs of making an experienced team and help mighty companies grow their businesses by achieving their goals. It is safe to work with a dedicated squad and has great perks. 

Pros Of A Dedicated Team

  • Impressive Flexibility

Dedicated experts offer diverse work models to work with them. You can assign the whole project to them and obtain the final product. Or you can pick to supervise them closely. They can work in any way chosen by the client.

  • Improved Productivity

You can expect to witness a 10% increase in productivity from the dedicated crew. Also, you have access to global talent.

Cons Of A Dedicated Team

  • Unsuitable For Short-Term Projects

A dedicated team is a great fit for long-term projects, but it is unsuitable for startups seeking experts for the short term. Employing a dedicated staff for smaller projects could result in more investment.    

  • In-Depth Integration

A dedicated crew is incorporated into the client’s company, so it is necessary to ensure that the experts take care of all security hazards.

Frequently Asked Questions

  1. Is Outsourcing Development More Affordable Than In-House Development? 

Opting for outsourcing development is wise if you select one between internal vs. outsourcing development on a limited budget. Outsourcing is forever a more cost-effective option for startups, especially long-term projects. 

  1. What Is The Best Way To Employ A Dedicated Team?

Hiring a dedicated team is a time-consuming procedure that entails several steps, such as searching for programmers, interviewing them, etc. Nonetheless, you can collaborate with a software agency to hire a dedicated team in 2-3 weeks.  


As you can see, both models have their own advantages and drawbacks. The choice relies on the project’s specifics. However, a dedicated team would be the best choice for startups as they provide top-quality services and work attentively only on your project. 

They cover the smallest to most complex software requirements and are impeccable for working for a prolonged duration. They can make your product competitive and attract more consumers.


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