Why Startups Should Hire Dedicated Developers

Olga Gubanova

November 19, 2024

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Hiring dedicated developers has proven to boost productivity and project success across industries, particularly for startups aiming to scale quickly.

Let’s keep it real: dedicated teams are focused 100% on your project, and that makes a huge difference.

Up to 40% Higher Productivity: Multitasking kills efficiency. Studies show that switching between multiple projects can lower productivity by as much as 40%. Dedicated developers don’t have that problem—they’re laser-focused on one thing: your project.
Better Quality: When developers work exclusively for you, they dive deeper into your requirements and polish every detail. As a result - A higher-quality product built exactly the way you want it, without the cut corners that often come from splitting attention across projects.
Scalability When You Need It: A dedicated team makes scaling easy. You can adjust the team size as your project evolves without hassle. Whether you’re expanding or need that extra push, dedicated developers can flex to match your needs.
Less Risk, More Control: Juggling projects is tough—missed deadlines, mixed-up priorities, and headaches. A dedicated team keeps things smooth. They’re focused solely on your project, meaning fewer delays, more accountability, and much less stress.

In short, hiring a dedicated team is about getting things done at high quality and with a serious edge in efficiency. It’s your best bet for when you want results without distractions.

In this guide, we’ll explore how to reduce the unknowns when hiring dedicated developers, helping you make informed decisions that lead to success. By understanding the critical factors—from assessing technical expertise to evaluating a candidate’s problem-solving approach—we’ll demystify the process of choosing the right developers or building a full-fledged team. You’ll learn how to spot red flags early, ask the right questions during interviews, and ensure that your project is in capable hands.

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What’s a Dedicated Team and How Do You Get One?

A dedicated team is a group of developers whose sole focus is on your project. Think of it like hiring your own in-house team, but without all the headaches of recruitment, management, and admin work. These teams are tailored specifically to your project’s needs, and they stick with you from start to finish, bringing consistency, focus, and a deeper understanding of your goals.

How to Get a Dedicated Team

When you’re ready to scale and need a dedicated software development team, you’ve got options.

Outsourcing Companies: The go-to choice. Outsourcing agencies are pros at finding developers and matching them with your project. You get a full team ready to dive in without having to worry about contracts or logistics. It’s like adding a remote department to your company, minus the hassle.
Freelance Platforms: Some businesses piece together dedicated teams by hiring individual freelancers. It works, but you’ll need to manage the team yourself. It’s more hands-on and can be great for smaller projects but less ideal for larger, ongoing ones.
Staff Augmentation: Need some extra firepower? Staff augmentation is when you bring in external developers to work alongside your internal team. It’s flexible and gives you a manpower boost when needed without committing to a full team long-term.

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Dedicated Developers vs Freelancers: What’s Best for Your Startup?

Choosing the right team is key to your startup’s success. Should you go for dedicated developers, staff augmentation, or freelancers? This guide helps you decide based on your project’s scope, budget, and management needs.

Step 1: Understand Your Project Scope and Timeline

A dedicated development team is ideal if your project is complex and will take more than six months. For example, you’re building a SaaS platform that needs ongoing feature development and updates. A dedicated team provides consistency—they become deeply familiar with your product, so you avoid the inefficiencies of bringing in new people mid-project.

But if you’re just adding a feature or two and already have an in-house team working on the core product, staff augmentation works better. It’s short-term and flexible, and you only pay for the developers when you need them.

Step 2: Do You Have an In-House Team?

Staff augmentation is the way to go if you already have internal developers but need to speed things up or add a specific skill (like mobile development or security). Think of it as hiring temporary specialists who plug into your team. For example, if you’re launching an app and need an iOS expert, you can bring one on board without recruiting or training someone long-term.

But a dedicated outsourced team is much easier if you’re starting from scratch with no in-house developers. They take care of hiring, project management, and scaling—letting you focus on the bigger picture.

Step 3: Look at the Complexity of Your Project

Projects that involve cutting-edge technologies—like blockchain, AI, or machine learning—require specific expertise. You need a dedicated team that can provide the depth and focus needed. These teams are usually equipped to handle complex tech stacks and can scale up as the project evolves. For example, a company building an AI-driven recommendation system might hire a dedicated team specializing in data science, machine learning, and algorithm design.

You might be fine hiring freelancers for less complex projects, like a landing page or basic eCommerce website. They’re usually more cost-effective but remember that managing a team of freelancers for a larger project can get tricky.

Step 4: Consider the Costs and Pick What Fits

Here’s the breakdown when choosing between freelancers, staff augmentation, or a dedicated team:

Freelancers: Good for quick, small projects like designing a landing page. They charge $30-$50 an hour, so a short project might run you $1,000-$5,000. Great for short-term, but not for heavy-lifting projects.
Staff Augmentation: Need extra help for a few months? You’re looking at $30-$75 per hour. For a few months, the total could be $10,000-$30,000. Handy if you need specific skills temporarily without long-term commitment.
Dedicated Team: For long-term, serious projects, a dedicated team is your go-to. It’ll cost $4,000-$10,000 per developer per month, so a 6-month project with a small team could be $120,000-$300,000. You get full focus without the hassle of managing it all in-house.

Pick freelancers for quick wins, staff augmentation for short boosts, and dedicated teams for big projects that need full commitment.

Step 5: Factor in Management Time

Managing your team is critical. If you don’t want to be hands-on with day-to-day project management, an outsourced dedicated team is the best choice. These teams come with their own project managers, saving you from constantly tracking progress or managing feedback loops.

On the other hand, if you prefer staying more involved in the project, staff augmentation allows you to integrate external developers with your internal team and maintain direct control. But keep in mind, this approach can demand more time from you to manage effectively.

What’s the Real Cost of Hiring a Dedicated Development Team?

When you’re thinking about hiring a dedicated development team, it’s important to know where your money’s going. Whether you’re building a next-gen app or scaling your startup, here’s what the numbers actually look like.

Basic Projects ($15,000 - $50,000)

If you’re launching a Minimum Viable Product (MVP) or a simple app, you’ll likely be looking at costs between $15k and $50k. That covers smaller teams and straightforward functionality—just the essentials to get you off the ground.

Medium Complexity ($50,000 - $200,000)

For something a bit more serious—like a mobile app or a SaaS platform—you’re looking at around $50k to $200k. This is where custom features and integrations start coming into play. If you need advanced payment systems or APIs, this is your zone. Expect a 5-10 person team to work on your product for 6-12 months.

Complex Projects ($200,000 - $500,000+)

When you’re going big—think AI, blockchain, or enterprise software—expect to drop $200k to $500k or more. These projects need larger teams with specialized skills, and they can take over a year to develop.

Model	Hourly Rate (Low)	Hourly Rate (High)	Monthly Cost per Developer	Best For	Pros	Cons
Dedicated Development Team	$30	$150	$4,000 - $10,000	Long-term projects, ongoing development, full focus	High focus, best for long-term, deep project involvement, high quality	Higher initial costs, long-term commitment needed
Staff Augmentation	$20	$70	Depends on hours worked	Short-term scaling, specific skill sets, temporary needs	Flexible, scalable, adds specific skills, good for short-term scaling	Potential cost overruns, less stable for long-term, integration challenges
Freelancers	$15	$120	Depends on hours worked	Small tasks, short-term work, specific projects	Affordable, good for short tasks, quick hiring process	Less reliable for long-term, less focus, potential lack of commitment

Start simple. Launch with an MVP to test the waters and gather feedback before scaling up. It’s smart because you’re not blowing your whole budget upfront. Once you know what works, then you can expand and add features.

For outsourcing, think beyond borders. Developers in Eastern Europe and Asia offer high-quality work at lower costs. You’re getting great talent without the hefty price tag.

Here’s a breakdown of dedicated developer costs by region for 2024 based on the latest data:

Region	Hourly Rates	Pros	Ideal for
North America	$100–$200	High expertise, excellent communication, strong regulatory knowledge	Complex, high-stakes projects requiring local expertise
Western Europe	$80–$150	High expertise, familiar with data protection laws, close time zone	Complex projects needing real-time collaboration
Eastern Europe	$25–$60	Cost-effective, skilled developers, strong tech infrastructure	Startups looking for high quality at affordable rates
Latin America	$30–$75	Good time zone overlap with North America, skilled developers	Startups needing consistent communication and moderate pricing
Asia	$15–$40	Extremely cost-effective, large talent pool	Budget-conscious startups with large-scale projects

If you want a more detailed breakdown of dedicated development team costs by region, check out the pricing chart at this link.

Hourly Rates for Hiring Dedicated Developers by Region (2024)

Hiring globally gives startups access to top-tier talent at competitive prices. Eastern Europe and Latin America stand out for quality at lower rates, ideal for fast-growing tech startups. However, for projects requiring strict compliance and real-time collaboration, nearby developers in Western Europe or North America are worth considering.

At Ptolemay, we deliver Silicon Valley standards by partnering with the best global developers while keeping costs efficient. Learn more at Ptolemay Staff Augmentation.

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Hidden Costs When You Hire Dedicated Developers

When you Hire Dedicated Developers, the direct costs may seem clear, but hidden expenses like onboarding, infrastructure, and downtime can add 10-30% to your budget.

1. Infrastructure Expenses for Dedicated Developers

Even if the team is remote, there are still tool-related costs. You'll need to provide access to collaboration tools like Slack, Jira, GitHub, or Zoom. Licensing for these tools can cost between $10 to $30 per user per month. For a 10-person team, that adds up to $100 to $300 monthly just for basic tools. If you’re using cloud services (AWS, Google Cloud), storage or server expenses can increase this significantly—some cloud providers charge $50 to $200 per month, depending on the required storage.

2. Onboarding Costs When You Hire Dedicated Developers

The onboarding process may take around 2-4 weeks, especially if your company has unique processes or workflows. During this period, productivity may slow down by 10-20% as the team learns the ropes. This onboarding can cost anywhere between $2,000 and $5,000, depending on the team size and complexity of the project, factoring in time from both the dedicated team and internal employees responsible for the onboarding.

4. Communication Costs in Managing Dedicated Developers

Communication challenges often stem from time zone differences or language barriers. This can lead to project delays or errors. For example, if rework is needed due to miscommunication, this could increase the overall project cost by 10-15%. If you're paying a team $50,000 for a project, expect up to $5,000 to $7,500 more due to avoidable mistakes.

5. Training Costs for Dedicated Development Teams

If the dedicated team lacks specific skills or industry knowledge, additional training may be required. This training can cost anywhere from $1,000 to $3,000 per developer, depending on the complexity of the tools or regulatory knowledge needed (such as HIPAA compliance for healthcare projects). This can also delay the project by weeks, affecting your timeline

6. Management Overhead When Hiring Dedicated Developers

Even with a project manager on the team, you'll need to factor in management time from your side to ensure alignment. This could mean 5-10 hours a week of internal team time spent on updates, feedback, and coordination. At an average rate of $75/hour for internal management, this could add an additional $375 to $750 weekly, or up to $3,000 monthly.

7. Downtime Costs with Dedicated Developers

If your project scope changes or is delayed, you might still need to pay the dedicated team during periods of low productivity. Downtime can account for 5-10% of the total project cost if the team is waiting on feedback, approvals, or changes in scope. For example, if you're paying $100,000 for a six-month project, that’s an extra $5,000 to $10,000 in idle time costs unless the team’s workload is carefully managed.

By working with an experienced outsourcing provider, you avoid much of the burden and cost that comes with building and managing an in-house dedicated team. If you're looking for a dedicated team with minimized hidden costs, check out our services at Ptolemay.

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Case Study: Turning a Failing Project into a Success

A startup in the ad tech industry approached us at Ptolemay after their platform was left in ruins by a previous dev team. Every fix broke three other things, and they were on the brink of losing investor funding. We knew this required more than just quick fixes—we needed a team of elite developers who understood the complexity of SSP/DSP integrations and could quickly stabilize the project.

We assembled a dedicated team with expertise in ad tech and microservices, and within the first month, they had rewritten the messy code, implemented automated tests, and cleaned up the architecture. One critical challenge was handling hundreds of real-time requests per second. By choosing the right tech stack and optimizing performance, we not only solved this issue but opened new opportunities for the client.

Thanks to the leadership of our project manager, Sergey Kolesnichenko, the project was completed in six months—well ahead of the original 12-18 month estimate. The startup is now scaling with integrations handling millions of requests daily.

Check out the review with the startup owner's contact details here.

Study: Turning a Failing Project into a Success

Looking to rescue a troubled project? Contact Ptolemay to build a team that delivers.

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Tips for Choosing Top Developers and Building a Dedicated Development Team

Hiring great developers goes beyond just their technical expertise. Success is 80% about the environment you provide, and 20% about their personal engagement. Here's a streamlined approach to ensure you select the best talent and set up a team that thrives:

1. Define Your Project Needs

Before anything else, get clear on what you need for your project—whether it’s mobile app development, AI integration, or custom software. Being specific about skills, experience, and the project timeline helps narrow down candidates from the start.

2. Assess Hard Skills

Once your needs are defined, check the candidate’s technical abilities. Review their tech stack, past projects, and coding examples to make sure they have the right skills for the job. This ensures you're starting with a solid technical foundation.

3. Select Candidate Profiles

With hard skills confirmed, look for developers who match your technical requirements through outsourcing platforms or agencies. Choose profiles that fit not only in terms of skills but also experience relevant to your project.

4. Use Soft Skills Interviews to Gauge Interest

After confirming hard skills, focus on how invested the developer is in your project. During the interview, ask about specific challenges they’ve faced:

“Tell me about a project where things went wrong. How did you solve it?”A good response will dive into details, showing how they tackled problems. Watch for candidates who give general answers—they may not be as engaged.

We’ll break this down further with practical interview tips in the next section.

5. Watch for Enthusiasm

Look for signs of excitement when candidates discuss past projects or challenges. Developers who genuinely enjoy solving problems bring energy and dedication to your project—critical for long-term success.

6. Create the Right Work Environment

Even the best developers can’t succeed in a chaotic setup. Ensure clear goals, good communication, and provide the necessary tools to help them do their best work. This is where 80% of a team’s success lies.

7. Get Started

After hiring, integrate the team into your workflow. Whether they work independently or alongside your internal team, make sure there’s a smooth onboarding process and a clear path to communication.

For more expert guidance on finding remote developers and keeping everything within budget, check out How to Hire Remote Developers Within Your Budget.

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How to Conduct a Soft Skills Interview for Developers

Once you've identified a developer with the right technical skills, it's time to dig deeper with a soft skills interview. This step helps you find someone who will not only code well but also contribute positively to your startup’s growth. Soft skills play a crucial role in how developers handle pressure, communicate, and collaborate in a fast-paced environment.

1. Problem-Solving and Critical Thinking

After covering hard skills, focus on their ability to problem-solve under pressure. Ask about a situation where a project went wrong—whether it was a missed deadline or a technical issue. How did they react? Did they come up with alternative solutions, involve others, or develop a workaround? A candidate’s approach to pressure shows how they’ll handle the inevitable challenges of a startup environment.

Example question: "Can you share a time when a last-minute issue jeopardized a project? How did you solve it?" Look for detailed answers that highlight adaptability and resourcefulness.

2. Adaptability in Fast-Changing Environments

Startups pivot often, and developers need to keep up with these shifts. Gauge their flexibility by asking how they've handled sudden changes in scope or priority. Did they embrace the change or resist it? Did they manage to pivot without slowing down the project?

A good follow-up question might be: "Can you give an example of when you had to switch gears mid-project due to changing business goals?"

3. Effective Communication

Developers often need to explain their work to non-technical team members or leadership. Ask how they’ve handled such communication in the past. Have they had to explain complex tech issues to a CEO or non-tech team members? Look for candidates who can simplify their explanations without losing the key points.

Question: "How do you handle explaining a technical delay or challenge to a non-technical stakeholder?"

4. Team Dynamics and Conflict Resolution

In smaller startup teams, personalities can clash. You need to know how a developer manages conflict, especially when the team disagrees. Ask for examples of conflicts they've faced and how they approached them.

Example: "Can you describe a time when you disagreed with a team member about an approach? How did you resolve it?" Look for developers who focus on collaboration and finding a solution, rather than getting bogged down by personal differences.

These soft skill insights ensure you're hiring someone who can handle the challenges unique to startups. For more tips on structuring these interviews, check out our guide: Essential Developer Interview Questions for Startup Founders.

For a deeper dive into what questions can help you uncover these traits, head over to our article: Essential Developer Interview Questions for Startup Founders. This guide will help you ask the right questions to find developers who not only excel in coding but are also a great fit for the dynamic world of startups.

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How to Calculate the Cost of Hiring a Dedicated Development Team for Your Project

When calculating the cost of a dedicated team, it boils down to the project's complexity, developer expertise, and the region you're hiring from. For a typical project lasting six months, you're looking at something like $300k if you hire a team with a senior dev ($100/hour), two mid-level devs ($65/hour each), and two juniors ($40/hour each). Want to cut costs? Offshore teams in Eastern Europe or Asia can reduce that to about $150k without sacrificing quality.

Instead of guessing, use our App Cost Calculator, which will give you a detailed cost breakdown in just 3 minutes. If you’re curious about how the calculator works and what kind of insights you’ll get, check out this link: AI Plan for Your App. It walks you through the process and gives you a comprehensive report tailored to your project.

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Frequently Asked Questions About Hiring Dedicated Developers: Costs, Benefits, and Best Practices

Why should I hire dedicated developers instead of freelancers?

‍Hiring dedicated developers ensures long-term focus on your project, consistent quality, and deeper integration with your team, unlike freelancers who often juggle multiple clients.

How much does it cost to hire dedicated developers?

‍The cost ranges between $25 and $150 per hour, depending on the developer’s experience and location, making it flexible based on project needs.

What is the average hourly rate for software developers?

‍The average hourly rate for software developers varies from $30 to $120, influenced by skill level and geographical region.

When should I hire a dedicated development team?

‍You should hire a dedicated team for long-term projects, frequent updates, or when you need specialized skills that require full-time commitment.

What is a dedicated developer, and how is it different from other types of developers?

‍A dedicated developer works full-time on your project, offering continuous focus and consistency, unlike freelancers or part-time developers who may have divided attention.

What is the difference between a dedicated development team and freelancers?

‍A dedicated team offers ongoing, full-time collaboration on your project, while freelancers typically handle multiple clients and may not provide consistent availability.

How much does it cost to hire a team to develop an app?

‍Hiring a team for app development can cost between $30,000 and $150,000, depending on the app’s complexity, features, and the size of the development team.

What factors influence the cost of hiring a dedicated software development team?

‍Key factors include the team's expertise, project complexity, development timeline, and the geographical location of the team members.

What are the benefits of hiring a dedicated development team?

‍Benefits include full commitment to your project, faster delivery, better communication, easier scaling, and consistent quality across all development phases.

How can I find and hire a dedicated development team?

‍You can find dedicated teams through platforms like Clutch, Upwork, or by working with established development agencies that specialize in your industry.

What are the key differences between dedicated hosting and cloud hosting?

‍Dedicated hosting provides a private server for your exclusive use, offering better control and performance, while cloud hosting is more scalable but shares resources with other users.

How many people should be on a software development team?

‍A typical development team consists of 5 to 10 members, including developers, designers, project managers, and QA specialists, depending on project size.

What is the cost of outsourcing software development to a dedicated team?

‍Outsourcing to a dedicated team can range from $40,000 to $150,000 for a project, depending on its complexity and the region of the developers.

What is a dedicated development team model, and when is it best to use it?

‍The dedicated development team model provides a full-time, remote team working solely on your project. It's ideal for ongoing, long-term development needs.

How do I protect my app idea when working with a dedicated development team?

‍Protect your app idea by signing a Non-Disclosure Agreement (NDA) and ensuring the contract clearly states your ownership of the intellectual property.

Estimate Dedicated Development Team Costs in Minutes

As a startup founder, managing your budget is key. Hiring a dedicated development team can offer huge benefits, but only when you fully understand the costs involved. Whether you're launching an MVP or scaling an app, getting a clear cost estimate up front lets you plan better and stay on track.

You can quickly estimate your project’s costs with our Budget Calculator.

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Meet Our Expert Flutter Development Team

Our full-cycle Flutter development team at Ptolemay specializes in building high-quality, cross-platform apps from start to finish. With expert skills in Dart, backend integrations, and seamless UX across iOS and Android, we handle everything to make your app launch smooth and efficient.