How Much Does It Cost to Hire a Dedicated Development Team?

Hiring a dedicated development team isn’t just an expense—it’s an investment that comes with a price tag that varies widely based on location, expertise, and engagement model.

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Article Contents

  1. What Does a Dedicated Development Team Mean?
  2. Average Cost Estimates to Hire a Dedicated Team in 2024-2025
  3. Factors That Influence the Cost of a Dedicated Development Team
  4. Hidden Costs to Consider When Hiring Dedicated Team
  5. Key Benefits That Justify the Hiring Cost of Dedicated Teams
  6. Is Hiring a Dedicated Development Team Worth the Investment?
  7. Conclusion

FAQs

You pay for salaries, management, tools, support roles (like QA and designers), and vendor fees. Some providers also include admin work, communication tools, and HR development services. It’s often an all-in-one monthly price.
Developer salaries depend on where they live. Team members in the U.S. or Western Europe typically cost more, while countries such as Ukraine, India, or Bangladesh offer similar skills at lower rates, helping you save 40–60% on the total cost.
Usually, yes. You skip costs like office rent, equipment, HR, and employee benefits. A dedicated team is managed externally, and you only pay for actual development work without all the overhead of full-time employees.
Main cost drivers include team size, tech stack, country, project length, and whether the vendor provides complete management. Bigger teams and advanced technologies naturally cost more, while long-term contracts often give better pricing.
A managed team includes project managers and structure, so you don’t need to guide them daily. Unmanaged teams cost less but require you to handle task planning, timelines, and check-ins yourself.
Nasif Sid

By Nasif Sid

Under his leadership, the company has delivered many successful projects, helping local businesses adopt “USA-class” solutions. Committed to impact, Nasif drives initiatives that support youth, with 40% of the company's efforts dedicated to education, mentorship, and sustainability.

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