Table of Content
Know the Differences Between Dedicated and Managed Development Team
Building a large-scale business software requires smart decision-making in several key areas. Knowing the difference between dedicated development team vs managed services is one of those analysis that is important for companies. It allows you to pick the right team for development, keeping in view the requirements and objectives of the project. Though there are many software development services available in the industry, but picking the right team that can understand your project is very important for stakeholders.
Currently, there are two teams that are preferred by majority of businesses i.e. dedicated and managed team. Both of these teams can help you to build advanced projects, provided you let them understand all the requirements and objectives correctly. However, knowing differences between these teams is also important, because in all circumstances, you’ll need to pick one of them. So, if you do not have any idea how dedicated and managed development teams work, read this article in detail.
The blog will let you know what type of benefits you can get by hiring dedicated or managed team. It will be a good read for those who are looking to build a large-scale project that precisely requires experienced development teams. Let’s start from the basics understanding the working concept of both teams below.
What is a Dedicated Development Team?

The dedicated development team model, often referred to as IT out staffing, provides businesses with the flexibility to supplement their internal team by bringing in external developers for a specified period of time. This approach allows organizations to scale their workforce quickly without the complexities and long-term commitment of hiring full-time employees. These external developers seamlessly integrate with the existing team, working as an extension of your workforce, and contributing their expertise to meet your project needs.
Under the dedicated development team model, a web development company acts as an intermediary, managing the logistical aspects of recruitment and ensuring the developers have access to all the development tools, technologies, and infrastructure. This arrangement relieves your business from the administrative burden of setting up and maintaining these resources, allowing you to focus on core business activities. The development company takes care of the technical setup, ensuring that the team can operate efficiently and effectively without additional overhead on your part.
One of the key benefits of this model is the predictable cost structure. You pay a flat monthly fee for the work of the developers, which allows you to maintain a consistent budget while gaining access to a skilled team. This pricing model offers cost savings compared to traditional hiring practices and enables you to scale up or down based on the specific needs of the project, providing greater flexibility in managing development timelines and resources.
What is Managed Services?

A managed outsource development team is a group of IT professionals who oversee every aspect of a project from its inception to its successful launch. This team is responsible for the full lifecycle of the software development process, starting with initial planning, moving through the development stages, and ultimately delivering a high-quality product. Their involvement is not limited to just building the software; they work closely with your business throughout, ensuring that the final solution meets all specified requirements and aligns with your objectives.
Beyond the initial development, the managed team also handles ongoing support, upgrades, and maintenance of the software. Once the product is launched, they remain engaged, addressing any bugs, implementing new features, and making necessary updates to keep the software current and effective. This continuous support helps ensure the software remains scalable, secure, and aligned with evolving business needs, enabling your company to adapt to market changes or technological advancements seamlessly.
The managed team model offers several advantages, particularly in terms of expertise and project management. With a dedicated team of professionals, you gain access to a range of specialized skills. This diverse skill set allows for a holistic approach to your project, ensuring that every phase is handled by experts. Additionally, the team takes responsibility for delivering the project on time and within budget, providing you with peace of mind and freeing up your internal resources to focus on other critical business operations.
Differences Between Dedicated Development Team vs Managed Services

As a business stakeholder, you need to know which team hiring model will suit best for your project. You need to know the differences between different teams that are available to hire in the industry. Considering the case of dedicated and managed development teams, let’s take a look at their differences below.
Cost Estimation
Outsourcing a dedicated team means you are bringing together a group of specialized experts who are fully focused on your project’s success. These professionals are selected specifically for their skills and expertise that align with your needs, ensuring a highly customized approach to your development process. While the initial investment may be higher, this setup can offer substantial long-term value to the aspiring businesses.
In contrast, a managed development team typically provides a more predictable and structured app development cost model. This approach allows you to have clear visibility into the scope of work, and associated costs from the outset. It offers a more straightforward financial commitment, with services rendered according to a set schedule. This predictability can be advantageous for businesses with fixed budgets or those looking for a more structured approach to project management.
Partner with our software development specialists to pioneer custom solutions that drive your business forward.
Request Your Solution
Wider Talent Pool
A dedicated team model provides a carefully selected group of knowledgeable experts suited to your project requirements. This strategy makes it easier to delve deeply into specialist fields and guarantees that you have access to the necessary talents at every stage of the project. It’s a good arrangement for developing expertise and creating a cooperative learning atmosphere.
With managed services, you can access a wide range of knowledge and abilities without having to oversee a full-time in-house staff. Because managed service providers are skilled at bringing a variety of specialists together under one roof, this approach serves as a springboard for a broad skill set. It’s a way to access a wealth of knowledge as needed, keeping your projects innovative without incurring significant administrative costs.
Flexibility in Work
A dedicated team serves as an extension of your internal team and offers a high level of flexibility. This architecture enables seamless alignment with your changing project requirements, close cooperation, and real-time modifications. A thorough grasp of your project is fostered by the ongoing communication, which makes it possible to quickly adjust to shifting market conditions or demands.
Managed services, on the other hand, provide an organized strategy with predetermined objectives and scopes. This model is the preferred choice for companies looking for a laidback approach without sacrificing quality, despite its seeming lack of flexibility. Adaptive solutions can also be brought to the table by the experience of managed service providers, particularly when negotiating intricate IT environments.
Frequently Asked Questions
What is a dedicated development team? By hiring outside workers for a predetermined amount of time, companies can augment their internal workforce with on-demand teams, often known as dedicated development team. |
What is managed services? Managed team refers to a group of IT specialists who remain in charge of all project-related tasks from conception to successful launch. The services provided by these professionals are often called managed services. |
Which development team is best for a large-scale project? For large-scale projects, you need to hire development teams very carefully. To get expert services in an on-going project, you could go for dedicated teams, but if you are building a project right from the scratch, managed services could be a more suitable option. |
Final Words
That concludes our entire article in which we have discussed core differences between dedicated development team and managed services. When starting to build a project, you need to select a development team very wisely. If you will not understand the scope and benefit of each team, you will always remain in argument with the people you are working with. It is therefore important to first get a clarity between the working procedure of dedicated team and managed services. Once you will get that, it will become easier for you to pick the right software outsourcing team as per the needed requirements.

Empower your digital journey with StruqtIO - Your dedicated partner for cutting-edge custom software development, innovation, and digital transformative solutions. Harness the power of technology to elevate your business and redefine your digital landscape today.