How to Select and Hire a Dedicated Software Development Team

A dedicated team operates as an autonomous unit, fully integrated into your project for the long term. They provide strategic alignment and deep involvement. Dedicated teams work best for long-term projects with changing needs, startups growing their products, or businesses wanting complete development without the hassle of hiring full-time staff.

This guide will help you understand how to hire a dedicated development team, unravelling all the nuances. It covers everything from defining your needs to managing the team.

Stfalcon has been providing dedicated developers' services for more than 15 years. This experience has given us a deep understanding of the market and specific processes. Today, we are willing to share all the crucial insights with you.

Defining Your Needs

Before searching the market for the perfect outsourced development team, you need to understand your specific requirements. At Stfalcon, we understand that every company has its own needs and processes for their projects. A skilled team can help turn these unique requirements into reality.

Having that in mind, how do we ensure our future teamwork will bring most results, while we are still at the start of the process? Any project starts with gathering all the requirements for it.

Technical requirements

Before you get a team working, put key objectives, business targets, and the desired results on paper. That involves stating technical requirements such as programming languages, frameworks, and platforms. Do you need experts in specific fields like AI/ML, cloud computing, or cybersecurity? Clearly stating these technical requirements will enable you to hire the right team with the right skill set.

Team size and structure

A typical dedicated team organization would consist of:

• a Project Manager (PM) for the project
• a Business Analyst (BA) who would gather and interpret the requirements
• Back-end and Front-end Developers who would build the application
• a UI/UX Designer to create an interface that is easy to use
• a Quality Assurance (QA) Engineer to test the software quality.

For a project that is medium in size, the team would usually be between 5 and 8 experts. Team size and makeup will also vary based on the complexity, duration, and specific needs the project has. To identify the right jobs for the team, start by considering the technical specs of the project and skills needed.

Development stages

A solid timeline with the most crucial milestones is needed to monitor a project. Establish the most significant steps in development: create a minimum viable product (MVP), pilot it with customers, and ship the final product. Use an Agile approach to fine-tune iterations in progress. Regular sprint reviews and retrospectives will continually make the team better and drive it towards its goals.

Performance metrics

The final preparation before working with a team would be to figure out how you will measure their success. Set concrete Key Performance Indicators (KPIs) and metrics that fit your business goals. Typical metrics include on-time delivery, cost, quality of code, user satisfaction, and reaching certain business goals. For example, if you are building an e-commerce portal, success may be measured by the number of successful transactions, user activity, or conversion rates. A specific measure of these will allow you to track team performance and ensure the project is delivering the desired impact. Set up regular reporting and communication channels to track progress and immediately correct issues.

Now that we have the background covered, we can proceed with the talent sources.

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Hiring a Dedicated Team in 2025: New Factors to Consider

Software development is changing by the minute. In order to be able to hire an outsourced software development team in 2025, you need to be forward-thinking. Emerging technologies, shifting workforce priorities, and developing remote work trends are reshaping how companies bring on and build teams. An understanding of these drivers is essential in order to stay competitive within a competitive marketplace.

The Impact of AI

In 2025, teams may include specialists in AI ethics. They will ensure that AI is being used responsibly and will reduce any bias. Prompt engineers will play a very significant role in tuning AI models and making them as effective as possible. Data scientists and AI/ML engineers will be required to develop and deploy AI-driven features. Hiring managers should assess both the technical skills of a candidate and their understanding of the ethical issues and practical applications of AI.

The Rise of Specialized Skills

There is a requirement for expert skills like AI/ML, cybersecurity, and blockchain that is not just a shortage of talent. It is a sign of profound transformation in the industry's interest. Software applications are becoming more complex, and cyber attacks are increasing. This has brought into being a huge demand for professionals in these disciplines.

Gen Z developers, now entering the professional world, cherish meaningful work and continuous learning. They also find themselves attracted to cutting-edge technologies that challenge them intellectually. Businesses need to stay ahead of the curve by making investments in training and development programs. They need to offer competitive pay and search for talent in specific communities and online forums.

Remote Work

In 2025, we will see remote work go beyond mere video conferencing and file sharing. Firms are trying out virtual offices with a metaverse experience, using AI assistants to help in meetings and technology that allows team members to work in real time. This is meant to make remote teams more productive. Distributed teams have to be good at communicating without everyone present at the same time. They have to use tools and procedures that support collaboration across time zones. Tax and legal concerns of globalized teams will need close scrutiny. The companies now have to contend with complex rules and compliance procedures. Firms will need to invest in in-depth collaboration tools but without the permanent real-time interactions.

Focus on Soft Skills

In 2025, expect greater emphasis on communication, collaboration, flexibility, and emotional intelligence. Developers need to communicate complex concepts simply, work well in diversified teams, and adapt to changing project requirements. Organizations that have dedicated teams must assess soft skills by conducting behavioral interviews, real-life simulation, and team testing. It will ensure team members work best together.

The Evolving Role of the Project Manager

The project managers' (PMs') responsibilities within dedicated teams are evolving. AI tools facilitate the ability of project managers to manage tasks and reports easily. This allows PMs to focus on critical areas like leadership, risk management, and motivating their teams. Project managers need to connect business goals with human decision-making and AI tools. They need to ensure that AI enhances productivity without interfering with workflows. As we press further into 2025, hiring an outsourced software development team means embracing technology innovation, shifting labor needs, and the continued rise of remote work. Companies at the forefront of these trends will attract the best talent and build high-performance teams.

The types of Dedicated Software Development teams

There are 4 different types of dedicated teams that enterprises avail: UI/UX designers, Front-end developers, Back-end developers, and QA managers. Apart from this, there are several roles that can come under a dedicated team model. Data scientists, Project Managers, Business Analysts, and DevOps Engineers are a couple more additional positions that enterprises often hire.

How Much Does It Cost To Hire Dedicated Software Developers?

The cost of hiring dedicated developers can vary significantly based on several factors. Here's a breakdown of the key elements that influence pricing:

• Location. For businesses from the US or Europe, nearshore and offshore options for hiring developers are usually more budget-friendly than local talents.
• Experience and Skill Level. Depending on your needs, the talent pool varies from junior developers to leading experts. Naturally, senior developers charge more, but can cover much more complex tasks.
• Technology Stack. Developers proficient in popular or niche technologies (e.g., AI/ML, blockchain) may command higher rates due to their specialized skills. On the other hand, devs with expertise in older or less popular technologies might be more affordable, but potentially harder to find.
• Project Complexity. Basic web development or maintenance tasks may require less experienced developers, keeping costs lower.
• Engagement Model. The work of a dedicated team can be paid hourly, monthly, or have a fixed price for the whole project.

General Cost Ranges

To get a better idea of how much the development is going to cost, here are some examples of developers’ charges in different locations:

• United States: $52 - $85 per hour
• Western Europe: $53 - $93
• Ukraine: $35 - $59
• Argentina: $40 - $51
• India: $20 - $35
• Philippines: $20 - $28

Remember that this is a rough estimation. Actual prices of hiring a dedicated team may vary depending on the job complexity, seniority level, and technology stacks.

To learn more about estimating development project costs, you can read our post where we go into details on this topic.

What are the best countries for hiring a Dedicated software development team?

The modern infrastructure allows us to hire outsourced developers from all over the world. The main benefit of outsourcing is saving money. To achieve this, focus on countries with a lower cost of living and lower developer fees.

As for 2025, the strongest contenders would be:

• Eastern Europe: Countries like Ukraine, Poland, and the Czech Republic have many skilled developers. These developers often come from strong technical backgrounds and education at top universities. These countries provide the best quality-price ratio.
• India: A giant in the IT outsourcing world, with a massive pool of developers and competitive rates. Still, quality can vary. Time zone differences can be significant, and communication challenges may also arise.
• Latin America: Countries like Argentina, Brazil, and Mexico provide a good mix of low costs and time zone alignment with the US. Cultural differences can affect business processes. Additionally, there may not be as many specialized skills in this area as in other regions.

Eastern European countries, such as Ukraine, offer the best mix of strong technical skills and cost savings. The specialists there are known for their problem-solving abilities and adaptability. Plus, they often have a good command of English and a cultural affinity with Western Europe and the USA, making collaboration smoother.

Why Choose Ukraine as a Dedicated Software Development Team Country?

Home to more than 300,000 specialists in the IT field, Ukraine offers a wide choice of experts to outsource software development tasks. Despite the recent challenges, Ukraine is a strong contender with a well-enriched human resource base and competitive rates. Ukrainian companies are resilient. They can manage risk and adjust to situations, which allows them to maintain efficiency.

The country is known for its successful history of outsourcing. It takes a proactive approach to product management and offers fair pricing. Even the top international companies outsource to Ukrainian IT companies.

The cost of IT services here can be 2 to 4 times lower than in the USA or Europe; however, the tech expertise offered is higher.

Finding the Right Dedicated Software Development Team

Your task now is to find the best candidates for your project. Look through the available offers and create a shortlist of the best matches. These are the candidates you want to contact personally.

Hiring Sources

There are several ways to hire a dedicated software development team. The right approach depends on your budget, timeline, and desired level of involvement in the hiring process.

• Recruitment Agencies. Recruitment agencies make hiring easier by providing pre-screened teams with the right skills. They source, interview, and hire for you, saving your time and energy. This ease comes at a cost since agency fees may be higher than direct hiring. Not all agencies have flexible cooperation models. You need to make sure that their services meet your business needs.
• Freelance Platforms. Platforms like Upwork or Toptal are websites where businesses can hire developers on a need-basis. They have an immense pool of talent and competitive prices. However, they are appropriate for short-term engagement or to address a specific niche gap. It may not be an option for hiring a whole full-time dedicated team. Quality can vary, screening takes time, and there is a risk of losing a specialist during a project.
• Referrals and Networking. The best means of acquiring a good, trustworthy, and talented development team might be to seek referrals from known colleagues, partners, or industry contacts. Joining tech communities, going to conferences, and participating in LinkedIn groups can help you find great teams. These teams may not be actively promoting their services. Since referrals come with an element of trust, this method has better retention and enhanced cooperation.
• Online Job Boards and Communities. Posting job listings on platforms like WeWorkRemotely, Stack Overflow Jobs, and AngelList can help you attract top development talent. Engaging with developer communities such as GitHub, Reddit (r/programming), and Indie Hackers can also be effective for finding dedicated teams with proven expertise. It is a matter of a well-crafted job description and a clear hiring strategy to locate the right talent.
• Direct Outreach. Reaching out to developers or agencies directly on LinkedIn, Clutch, or their sites is a good strategy. Personalized messages about your project, goals, and why you are reaching out to them for their services can guarantee you get good responses. Direct outreach lets you communicate directly and negotiate with the candidates. However, finding and contacting the right individuals is time-consuming and requires extensive research.

Creating a Shortlist

At some point, you may find yourself overwhelmed due to the sheer quantity of likely-to-be-competent applicants. Before participating in a complex communication, you need to produce a manageable shortlist. How many candidates should you include? A rule of thumb here is: as many as you can invite to meet you face-to-face.

Begin with eliminating candidates who are not fulfilling elementary requirements. For example, technical expertise, domain knowledge, or budget constraints. Give preference to teams who share similar projects within their portfolios. Employ pre-screening questionnaires. Short video or text responses can well verify a candidate's technical competence, communication, and motivation without taking long interviews. For identifying candidates suitable to your specifications, begin with short interviews of 15 to 20 minutes. Employ these interviews to screen out their general technical proficiency, communication skills, and availability.

When you do that, you have a realistic list of the best prospects for your project.You can now review all of them carefully, set up meetings, and hold detailed technical and behavioral interviews.

Vetting Candidates

After finding potential candidates, it’s important to vet them carefully to make sure they have the right technical skills and fit into your company culture. This vetting process should include technical tests, interviews focused on behaviors, and checking references to get a full assessment of each candidate.

• Technical Assessments. In order to assess the technical ability of a candidate, look at their past projects, open-source code contributions, and case studies. This will give you an idea of their skills and growth plan. If you want to meet the candidates face-to-face, you can subject them to technical interview questions on specific technologies, algorithms, or data structures.
• Behavioral Interviews. Behavioral interviews using the STAR approach (Situation, Task, Action, Result) can help you judge how applicants deal with real problems, settle disputes, and collaborate as a team. Calling on past experiences enables you to understand how people tackle challenges, coexist with others, and deal with diverse situations.
• Reference Checks. Call previous employers or clients to inquire about how they worked, their teamwork behavior, and if they were punctual. This is a way of ensuring the candidate's previous work conforms to your expectations. It also minimizes the possibility of employing someone who seems fine on paper but would not be effective in the workplace.
• Cultural Fit Assessment. To ensure long-term success, your team must share your company’s values, work culture, and communication standards. For distributed teams, evaluate time zone compatibility, responsiveness, and preferred collaboration tools. A test project or trial period can inform you if the team's style will fit with your business culture before committing long-term.

Starting Cooperation with a Dedicated Team: From Offer to Onboarding

After choosing the right dedicated development team, the next steps are to negotiate the contract and start onboarding. This ensures a strong foundation for a successful partnership.

Sign the detailed and transparent contract

The contract must have a clear description of:

• The development rates (detailed breakdowns by the required expertise are a must)
• Payment conditions and invoicing details
• Credit periods and limits, if any
• Intellectual property rights
• Confidentiality agreements
• Termination clauses.

Consulting a lawyer who knows about outsourcing contracts can help protect your interests. After properly formulating all these conditions, proceed to sign the contract.

Onboard the team

A structured onboarding process accelerates productivity and ensures the team aligns with your business goals. To make certain you are using a dedicated development team to its full capacity, consider using the following checklist:

• Company & Project Introduction – Provide an overview of your company’s mission, product, and industry.
• Roles & Responsibilities – Clearly define each team member's role and expectations.
• Project Roadmap & Goals – Share key milestones, deadlines, and success metrics.
• Access to Resources – Grant access to necessary tools, repositories, APIs, and internal documentation.
• Communication Guidelines – Set expectations for response times, meeting schedules, and preferred communication channels.
• First Tasks & Deliverables – Assign initial tasks to integrate the team into the workflow smoothly.

At this stage you also need to decide with preferred communication channels and collaboration tools. Most popular options would be Slack, Microsoft Teams or Google Meet for daily discussions and quick updates, Jira, Asana or Trello for tracking progress, tasks, and sprints, Confluence, Notion, Google Drive for storing key project information, GitHub, GitLab and Bitbucket for managing code repositories and version history.

Arrange proper team management and receive updates

It’s up to you to choose the management style and interaction with the team. You can choose how to receive updates. One option is to get daily updates with strict control. The other option offers more freedom, allowing you to see only specific results. In any case, it is necessary to conduct regular progress reviews and provide feedback. After finishing part of the project, review the results. Evaluate how you and the team worked together, and decide whether to renew the contract.

Challenges in Hiring a Dedicated Team

Hiring a dedicated development team has many benefits, but it also comes with challenges that can affect the project's success. Understanding these risks and proactively addressing them can help ensure a smooth collaboration.

Talent Scarcity and Competition

The need for competent software engineers is far greater than the supply of suitable applicants. Top talent can be hard to come by, particularly in specialized fields.

Solution: Seek candidates with transferable skills or widen your search pool geographically. Offer competitive and market-value commensurate benefits and pay packages. Invest in employer branding to highlight your organization's culture, values, and career opportunities to attract top talent. Use recruitment agencies and professional networks to cast a wider net and identify new talent.

Misaligned Expectations

Unclear project requirements, miscommunication about technical needs, or undefined team roles can lead to confusion and delays. The team may struggle to deliver the desired results if expectations are not aligned.

Solution: emphasize clear and consistent communication from the outset. Create detailed documentation that outlines project goals, technical specifications, and team responsibilities. Conduct regular check-ins to ensure alignment and address any questions or concerns. Before fully committing to a team, consider a discovery phase. This will help you better understand the project's complexities and ensure both parties are aligned.

Cultural Fit Issues

A mismatch in work styles, communication preferences, or company values can cause problems and slow down teamwork. Differences in time zones, work ethics, or how people communicate can lead to misunderstandings and lower productivity.

Solution: Evaluate if candidates are a good fit for company culture during the interview. Employ behavioral questions and expose them to important team members. Trial periods or small pilot projects can be employed to gauge compatibility before committing long-term. Clearly define work expectations, collaboration habits, and time zone preference ahead of time.

Budget Overruns

Unanticipated spending, scope modification, or inefficient usage of resources may lead to budget overruns. Effective planning is essential to maintain expenses in conformity with initial estimates.

Solution: Create a detailed budget plan taking into account contingent risks and extraneous costs. Review spending patterns on a regular basis and exercise change management processes to effectively control scope changes. Agile development methodologies can provide flexibility in managing changes without compromising cost controls.

Timeline Delays

Technical problems, communication issues, or poor project management can delay project timelines. Poor communication, unrealistic deadlines, or weak risk management can also affect the project's schedule.

Solution: Set realistic deadlines and incorporate buffer time for unexpected challenges. Use project management tools like Jira, Trello, or Asana to track progress. Regular stand-up meetings, sprint planning, and risk management strategies help address potential delays early.

Dealing with these challenges can be tough. However, having a dedicated development team can help. They provide the expertise and support you need to manage these issues effectively. And this is where we can help.

Stfalcon is a Ukrainian software development company that has been present on the market for the most part of its growth history. As a dedicated software development provider, Stfalcon offers our clients:

• 15+ years of expertise, 4.8 ranking on Clutch, and 300+ successful projects performed by the best developers we could ever reach.
• IT Academy by Stfalcon is our training center for team members. We provide the latest knowledge and expertise.
• Specialists are under the client’s complete control, just like the in-house developer department.
• Our team ensures transparent services and fast performance from A to Z.
• We help new team members get started by providing them with an office and a workplace solution.
• Stfalcon offers attractive pricing for long-term cooperation.

Whether you need a dedicated team, end-to-end development, or consulting services, Stfalcon is here to help.

Stfalcon’s Experience

Our company tops the list of Global Service Providers in Software and Mobile development for many years. Not once did we get the award as the Best Developers in Ukraine. So, we carried out many projects as a dedicated developer team.

Airfarm is just the first that comes into mind. Our team was formed exclusively from Stfalcon experts to develop a specialized application for the agro-industry. It operates as a network for publishing and viewing articles.

Read the full case study

In the course of the development, we interviewed our customer to get a profound understanding of the project’s specifics, potential user segments, the profit each segment would gain, and much more. We also initially discussed the project plan and the expectations the client had from us as a dedicated development team. Then we prepared a clickable design mockup of the interface and further provided development support in:

• UX design services;
• UI design services
• Backend, Frontend, iOS, and Android development services
• Manual testing.

As a result, the app allowed Airfarm to win the first investors in a seed financing round and raised $2.8 million from donors in the USA.

Stfalcon carried out several projects for Nova Posta, and our dedicated development team fully realized their backend development. More details can be found here.

Read the full case study

Final Thoughts

If you have a development project to carry out, now you know all the prospects and benefits of a dedicated development team model. This cooperation model is effective for creating a great software product with a low investment. It also gives you access to top developers from around the world. To ensure the success of your project, you should pay attention to each of the steps we talked about: meticulous planning, thorough candidate vetting and effective management.

You can still start if you have an idea, but can not list the technical requirements. Stfalcon is always eager to take on a new challenge. We have over 15 years of experience, which helps us understand development processes. We can identify the right technical and business solutions and guide our clients through their projects.

So, contact us to share the details, and we are sure to build your dedicated development team that will craft you a cutting-edge software solution.