Two Ways to Hire an External Development Team
When you can't (or don't want to) hire in-house, you have two primary engagement models: project-based (fixed scope, fixed price) or dedicated team (ongoing, flexible scope). Each has specific strengths and fits different stages of product development.
Project-Based Model: Best for Defined MVP
You define the scope, the agency estimates time/cost, you agree on milestones and deliverables. You pay for output, not time.
Advantages: Predictable cost, clear deliverables, vendor accountability to specifications.
Disadvantages: Scope changes are expensive, less flexibility, vendor optimizes for "done" not "best," knowledge walk-away at project end.
Best for: Building a first MVP with well-defined requirements, one-time features, specific technical workstreams.
Dedicated Team Model: Best for Ongoing Product
A fixed team (developers, designer, PM) works exclusively on your product, on a monthly retainer. You direct their work, they function like an embedded in-house team.
Advantages: Deep product knowledge accumulates over time, flexible scope, faster iteration, feels like in-house without hiring overhead.
Disadvantages: Monthly cost regardless of workload, requires active management and direction from your side.
Best for: Post-MVP products that need continuous iteration, startups that need a full team without in-house hiring complexity.
The Decision Framework
- Pre-MVP, clear requirements → Project-based
- Post-MVP, continuous iteration → Dedicated team
- Specific new feature → Project-based
- Augmenting an in-house team → Staff augmentation
At Devs & Logics, we offer both models, and often recommend starting project-based for the MVP, then transitioning to a dedicated team for post-launch iteration.