A dedicated team model is an engagement where a vendor employs engineers who work full-time on your product only. You set the priorities and review the work, and the vendor handles employment, equipment and administration. It sits between a fixed-price project and hiring individuals, and it suits products that keep changing for years.
How does a dedicated team work
You describe the roles and the vendor staffs them. The engineers join your planning, use your repositories and tools, and report into your priorities. The vendor stays responsible for contracts, payroll and replacing someone who leaves.
The engagement is billed per engineer per month, so the cost scales with the size of the team rather than with a fixed scope.
How does it compare with other models
| Dedicated team | Fixed-price project | Staff augmentation | |
|---|---|---|---|
| Who sets priorities | You | Mostly the vendor | You |
| Scope | Open, changes over time | Fixed in advance | Open |
| Team shape | Group of roles | Vendor's choice | Individuals added to your team |
| Cost driver | People per month | Agreed scope | People per month |
| Best when | Product keeps evolving | Requirements are stable | You need a few specific skills |
In practice the dedicated team and staff augmentation overlap. The difference lies in structure: a dedicated team is often several people with its own lead, while augmentation adds individuals into your existing team.
When does a dedicated team fit
It fits when the roadmap runs longer than a few months and requirements will change. You also need someone on your side who can direct the work, such as a CTO, an engineering manager or a senior lead. Without that person, the team lacks direction and drifts.
It fits poorly for a one-off project with a clear specification. A fixed-price contract is simpler there, as long as you accept that changes become change requests.
What are the risks
Knowledge sits with the team, so ask for documentation, code in your own repositories and access to all environments from day one. Attrition at the vendor can disrupt continuity, so agree how replacements are handled and how handover works. Finally, a team that only hears tickets and never hears customers builds to the spec instead of to the need. Invite engineers to planning and customer calls.
How should you structure the contract
Keep the terms plain. Agree the number of engineers, a minimum period, the working hours that overlap with your team, IP ownership and how a replacement works. Avoid contracts that lock you in for long periods without a way out if the fit is wrong. For a bigger setup with its own office and management, read about the offshore development center.
What does it cost
The main cost is the monthly price per engineer, multiplied by the team size. Add your own management time, tools and licences, and the time senior people on your side spend on direction and review. Compare that total with the full cost of local hires, including employer taxes, recruitment and the months it takes to fill each seat. A transparent price per engineer makes this comparison straightforward, and a vendor who cannot state it plainly deserves questions.
What this means when you hire through Miyagami
Our engineers join your team full-time, from €5,600 a month, with a three-month minimum and no recruitment fee. Every engineer is tested by an AI-native tech lead who works with AI every day. You get a shortlist within 3 working days, and we replace the engineer at our cost if the fit is wrong. See how we vet and pricing for the details. We don't do part-time engagements.
Short answers
What is the difference between a dedicated team and staff augmentation?
A dedicated team is usually a group with its own structure, while staff augmentation adds individuals to your existing team. Both are directed by you.
How big is a dedicated team?
Anything from two engineers upward. Size depends on the roadmap and on how many engineers your lead can direct.
Is a dedicated team cheaper than hiring locally?
Often on monthly cost. Compare the full cost of a local hire, including employer taxes and recruitment time.
Who owns the code?
You should. Agree IP transfer in writing and keep all code in your own repositories.
