How does blockchain support data privacy for better security
Data is the new currency, and hackers are always trying to steal it. So, how can you keep your data safe? The answer is blockchain! But the question is –how does blockchain support data privacy? Well, Blockchain helps keep your data safe by storing it securely and encrypting it, making tampering difficult. Its decentralized nature ensures that no single person or company controls the data. Blockchain also allows users to remain anonymous and control who can access their information, protecting it from unwanted attention. But that's not all—there's so much more to explore. Curious to learn more?
Start scrolling and explore –how blockchain protects your data, the challenges it faces, the solutions it offers, and more!
What is blockchain and data privacy?
Before taping into the details, let's first understand what blockchain and data privacy are. Here's a brief overview of both concepts.
Blockchain
Blockchain is a decentralized digital ledger, meaning it doesn't depend on one central authority. It securely records transactions across many computers.
It ensures transparency, security, and that data can't be changed by storing information in "blocks" that are linked in a chain. For instance, blockchain technology is one of the main tools that makes Web 3.0 work.
Data Privacy
Data privacy means protecting people’s personal information and letting them control how it’s used. This includes details like names, finances, or health information. Companies follow privacy and cybersecurity rules to keep data safe from being shared without permission.
How does blockchain support data privacy and storage security?
Here’s what you were looking for! In this section, our expert from Ontik Technology explains how blockchain technology is improving data privacy.
- Data Encryption
Data encryption in blockchain means turning your personal information into unreadable code. Only people with the right key can unlock and read it.
How it supports data privacy
Encryption helps keep your data safe by making sure that only authorized people can see it. Even if someone tries to steal your data, they won’t be able to understand it. This keeps your private information safe from people who shouldn't see it.
- Decentralized Control
In blockchain, the data is stored across many computers, not just in one place. These computers, or “nodes,” all have a copy of the data, which makes it decentralized.
How it supports data privacy
Since the data is spread out across many computers, hackers can’t easily break into just one place and steal everything. This makes it harder for anyone to mess with or access your data without permission, keeping it safer and more private.
- Immutable Records
Immutable records mean that once something is added to the blockchain, it can’t be changed or erased. It stays there for good.
How it supports data privacy
Once your data is added to the blockchain, it can’t be secretly changed or deleted. This makes sure that your information stays exactly as it was when it was first added, helping to protect your privacy from tampering or manipulation.
- Permissioned Access
Permissioned access means that only certain people or groups can see or change the data. This access is controlled by the owner of the network.
How it supports data privacy
With permissioned access, only trusted people are allowed to view or update your data. This helps protect your private information by making sure it’s not shared with anyone who shouldn’t have access to it.
- Smart Contracts
Smart contracts are like digital agreements that automatically carry out actions when certain conditions are met. They are coded into the blockchain and don’t need a middleman.
How it supports data privacy
Smart contracts help protect your privacy by making sure your data is only shared when you want it to be. For example, they can automatically give access to your personal info only if both parties agree. This keeps your data secure and prevents it from being shared without your permission.
- Selective Data Disclosure
Selective data disclosure means sharing only the specific information you want to, instead of everything. You can prove certain things without giving away too much.
How it supports data privacy
With selective disclosure, you can choose what information you want to share. For example, you can prove you’re old enough for something without giving your full birthdate. This helps keep your personal details private by only sharing the necessary information.
Is blockchain suitable for sensitive data?
Blockchain is a safe way to manage sensitive data and resolve data concern. Its clear and unchangeable records protect data from being altered. For extra privacy, permissioned blockchains only let approved users see the data. Another option is to store main data off-chain, with only a secure reference on the blockchain, which keeps things private.
Since blockchain data can’t be changed or deleted, there’s a chance of exposing information. But with the right setup, blockchain can follow privacy rules like GDPR. New tools are also being developed to make this easier.
Overall, blockchain is a strong and reliable way to keep sensitive data safe, offering security, trust, and privacy for managing important information.
Can data on blockchains be modified?
Blockchain data is designed to stay permanent, so once something is recorded, it can't usually be changed. This is what makes blockchain so secure and trustworthy.
But don't worry, there are still ways to add some flexibility! Tools like Layer 2 solutions and smart contracts allow developers to make changes when necessary. Things like optimistic rollups and upgradable smart contracts let updates happen smoothly, as long as they follow the blockchain's rules. It’s all about keeping things secure while still allowing room for improvements!
Challenges and Limitations of Blockchain for Data security and privacy
Blockchain is popular for its data privacy features, but it also faces several challenges and limitations. Here are some common challenges and potential solutions:
- Transparency vs. Privacy
Blockchain’s transparency makes all data visible to everyone, which can be a problem if sensitive information needs to stay private.
Solution: To overcome this, privacy-focused blockchains like Monero hide transaction details. Encryption techniques and private channels can also be used to protect sensitive data while still benefiting from blockchain's transparency.
- Immutability
Once data is recorded on the blockchain, it can't be changed or deleted, making sensitive personal information permanent.
Solution: A solution is to use “off-chain” storage for sensitive data, keeping it outside the blockchain but securely linked to it. This allows the blockchain to remain immutable while still offering a way to manage private information.
- Data Ownership and Control:
In decentralized systems, users may struggle to have full control over their personal data.
Solution: Introducing decentralized identity systems and user-friendly blockchain platforms can give individuals more control over their data. These solutions allow users to manage who can access their private information.
- Regulatory Issues
Blockchain’s decentralized nature can make it difficult to comply with privacy laws like GDPR, especially with regulations like the “right to be forgotten.”
Solution: Permissioned blockchains can be used, where participants agree to delete data under certain conditions. Also, “off-chain” storage with clear data-deletion policies can help meet privacy law requirements while maintaining blockchain’s benefits.
- Storage Problems
Storing large amounts of data on the blockchain is expensive and inefficient, as it’s designed for smaller transactions.
Solution: One solution is using hybrid systems where essential data is stored on the blockchain, while larger data is stored off-chain in secure cloud services. These systems can link to the blockchain for verification without overloading the network.
- Security Risks
Blockchain can still face risks like 51% attacks or bugs in smart contracts, which could harm data privacy.
Solution: These risks can be minimized by improving blockchain security through better coding practices, regular audits, and using more secure consensus mechanisms like proof-of-stake (PoS). Adding multi-signature wallets and decentralized apps (dApps) can also provide additional layers of protection.
The role of cryptography in blockchain security
Cryptography is all about keeping information safe by turning it into a secret code that only the right person can read. It uses special math tricks to change regular data into a coded form.
Let’s find out how Cryptography in Blockchain Security works:
- Protecting Data:
Cryptography ensures that once data is on the blockchain, it can’t be changed. Each block has a unique code (hash) from the previous one, so any tampering is immediately noticeable.
- Safe Transactions
Public and private keys work together to keep transactions safe. The private key signs the transaction, while the public key allows others to verify its authenticity. This prevents unauthorized access and ensures everything is legit.
- Getting Everyone on the Same Page
Methods like Proof of Work and Proof of Stake help everyone on the blockchain agree on what’s true, without needing a central authority. This keeps the system secure and decentralized.
- Privacy and Anonymity:
Cryptography also protects privacy. Techniques like zero-knowledge proofs allow transactions to be verified without revealing sensitive information, keeping users’ data safe.
- Smart Contracts Protection:
Cryptography also secures smart contracts—self-executing agreements. It ensures that only the right people can use them, stopping any unwanted changes.
Illustration of Cryptographic Hash Functions for Data Integrity
Cryptographic hash functions are like security guards for data. They take any input, like a file or message, and turn it into a fixed-length string called a "hash." This hash is unique for every different input. If you change even a single character, the hash changes completely, just like how fingerprints are unique for every person.
Example:
- Original Data: "Hello World"
- Hash Value: 5eb63bbbe01eeed093cb22bb8f5acdc3
- Altered Data: "hello world"
- Hash Value: 2ef7bde608ce5404e97d5f042f95f89f1c232871
As you can see, just changing one letter (like "H" to "h") makes the hash look completely different. This is how cryptographic techniques hash functions help make sure data stays safe. If the hash values match, the data is untouched. If they don't, something has been changed.
Popular consensus mechanisms and their impact on privacy to protect data
Consensus mechanisms are an essential part of blockchain technology. They are rules used to help different computers (or nodes) in a blockchain network agree on which transactions are valid.
In simple terms, these mechanisms make sure that all transactions are checked and added correctly to the blockchain, keeping the information safe and accurate. Some popular consensus mechanisms include:
- Proof of Work (PoW)
In this system, miners solve complex mathematical puzzles to verify transactions and add blocks to the blockchain.
Privacy Impact: This method isn’t very private. The transaction details are on a public distributed ledger, so while you might stay anonymous, people can still track data and potentially figure out who you are.
- Proof of Stake (PoS)
In PoS, validators lock up a portion of their cryptocurrency to demonstrate trustworthiness and confirm transactions.
Privacy Impact: PoS is faster than PoW, but transaction details are still public. Some PoS networks add privacy features, but they vary.
- Delegated Proof of Stake (DPoS)
In DPoS, token holders vote for a few delegates who are responsible for confirming transactions on behalf of everyone in the network.
Privacy Impact: DPoS is a bit more centralized, which can be less private. A smaller group handling transactions makes it easier for someone to track activity.
4. Proof of Authority (PoA)
In PoA, a small number of trusted validators, selected based on their reputation, handle the transaction process.
Privacy Impact: PoA isn’t great for privacy because it’s controlled by a small, known group, making it easier to trace transactions.
5. Proof of History (PoH)
PoH uses timestamps to log the order of transactions, often combined with Proof of Stake (PoS) to enhance the system’s efficiency.
Privacy Impact: PoH makes tracking easy, so it’s better for transparency than privacy.
6. Proof of Burn (PoB)
Users "burn" (destroy) a portion of their cryptocurrency to gain the ability to validate transactions.
Privacy Impact: PoB doesn’t add any privacy perks on its own, so transaction details are still visible unless extra privacy steps are added.
7. Zero-Knowledge Proofs (ZKPs)
ZKPs allow a user to prove the validity of a transaction without revealing any details about it.
Privacy Impact: ZKPs are excellent for privacy. They confirm transactions without revealing any personal info, making them a top choice for private blockchains.
9. Directed Acyclic Graph (DAG)
In DAG networks like IOTA’s Tangle, nodes confirm each other’s transactions without the need for a central authority.
Privacy Impact: DAGs are good for privacy, thanks to decentralized confirmation. But transaction data may still be publicly visible unless privacy features are added.
How does a permissioned blockchain technology balance privacy with accessibility
A permissioned blockchain strikes a good balance between privacy and accessibility by controlling who can access, see, and share data.
Unlike public blockchains, where anyone can join, permissioned blockchains are only open to approved users. This makes them perfect for businesses and organizations that need secure yet easy data sharing. Here's how they do it:
- Controlled access with roles: Users are given specific permissions based on their roles, limiting access to relevant data.
- Private channels for sensitive data: Data is shared in private channels, accessible only to specific groups.
- Encrypting data for extra privacy: Data is encrypted, ensuring only authorized users with the correct keys can access it.
- Safe validation methods: Trusted parties validate transactions using methods like Proof of Authority.
- Built-in auditing tools: Auditing tools track data access, helping meet regulatory requirements.
- Selective sharing with zero-knowledge proofs: Users can confirm details without revealing sensitive information.
- Digital identity management: Verified digital identities ensure only approved users can access the blockchain.
How does encryption safeguard information on the blockchain
A permissioned blockchain keeps data secure while allowing easy access to trusted users. Unlike public blockchains, only approved users can join, making it ideal for businesses. Here’s how it works:
- Controlled access: Users get specific permissions based on their roles.
- Private channels: Sensitive data is shared only with specific groups.
- Encryption: Data is locked so only authorized users can see it.
- Trusted validators: Approved parties confirm transactions.
- Auditing tools: Tracks data access for compliance.
- Selective sharing: Sensitive info can be verified without revealing it.
- Digital identities: Only verified users can access the blockchain.
The Role of Authentication and Authorization in Data Protection
Authentication and authorization are two important steps that help protect your data. Let’s find out what role they are playing in your data privacy and security.
- Authentication
Authentication is about checking who you are. For example, it’s like logging in with your username and password or using your fingerprint to unlock your phone. It makes sure that the person trying to access data is really who they say they are.
- Authorization
Authorization comes after authentication. It decides what you can do with the data once you're logged in. For example, it controls whether you can just view information or if you can edit it, depending on your role or permissions.
In simple terms, authentication is the key to proving who you are, while authorization is the gatekeeper, controlling what you can do with your data. Both keep your information secure.
How anonymity on the Blockchain protects user identities
Blockchain is known for being open and transparent, but keeping users' identities safe is still important. Even though blockchain helps keep things secure, there are challenges in making sure personal information stays private. In this section, we'll look at the risks and ways to keep privacy safe on the blockchain.
Risks and Challenges Associated with Anonymity
- Data leaks and surveillance: Even though blockchain is secure, sometimes private data can still leak. Public keys and transaction details can be traced back to people, which may compromise privacy.
- Lack of regulation: Some people may use blockchain's anonymity for bad reasons, like money laundering or fraud, since it can be hard to trace transactions.
- User mistakes: If users don't keep their private keys safe, their identity could accidentally get exposed, making them vulnerable to hackers or fraud.
Strategies for Maintaining a Balance between Privacy and Accountability
- Zero-Knowledge Proofs (ZKPs): ZKPs let users show that their transactions are correct without sharing personal information. This helps protect privacy while still making sure transactions are trustworthy.
- Privacy Coins and Tokens: Cryptocurrencies like Monero and Zcash protect users' privacy by hiding their details on the blockchain.
- Regulatory Frameworks: Governments can create laws that keep privacy safe while making sure people are responsible for their actions on the blockchain.
- Advanced Cryptography: Special techniques like ring signatures and stealth addresses keep transactions private without losing security or transparency.
How to get the best data privacy via blockchain
Ontik Technology is all about keeping your data safe with smart blockchain solutions. Specially they create Web development and Web3 development blockchain solutions that let you fully manage your own data and online experiences.
They help you with —
- Web 3.0 Consulting
Web 3.0 helps by making systems decentralized, so users have more control over their own data, improving privacy.
- Custom Blockchain Solutions
Blockchain keeps data safe and private by creating unchangeable records that no one can access without permission.
- Leveraging Artificial Intelligence
AI boosts privacy by spotting security risks and using smart methods like encryption to protect your data.
- 3D Appealing Graphics
Easy-to-use 3D graphics help users easily manage their privacy settings, making it simple to control data access.
- Semantic Web Technology
This technology organizes data in a way that makes it easier to manage and protect your personal information.
- Universal Access
Universal access makes sure privacy tools are available to everyone, giving all users the ability to protect their data.
So, if you want to protect your data and take your business to the next level? Get in touch with Ontik Technology today for all your blockchain and data privacy needs!
Conclusion
In today’s world, data is more valuable than ever. But keeping it safe has become harder due to risks like hacking, data breaches, leaks, and unauthorized access. These threats put your personal information at serious risk. That’s where blockchain comes in!
By decentralizing data storage, blockchain eliminates single points of failure, making it harder for malicious actors to access your information. If you still have questions or need more details on how blockchain can enhance your data privacy, Ontik Technology’s dedicated tech team is here to help. Get in touch today and take the first step towards safer data management!
Explore Our Latest Blogs & Industry Insights
In 2026, these are the top software development companies in Bangladesh. Explore the present and future prospects of the outsourcing software industry. The list of the world's largest companies has remained unchanged for decades. The biggest players dominate the tech sector. It would help if you could hold your position in your current occupation even in the global crisis. Tech titans are looking for alternatives to bridge that gap.
Bangladesh is a country of around 163 million inhabitants. 65% are young talent with a good literacy rate. These young resources attract and make it a software development outsourcing destination for global businesses.
In the rest of the article, we are going to explore the top 25 best software companies that are ruling this sector in Bangladesh as well as the global software industry. Plus, we will discuss their prospects, how to select the best leading companies and the condition of the IT industry in Bangladesh. Just for clarity, we kept the list limited to those companies who are focused on outsourcing their software engineering resources in the global market.
Present Condition of the Software Industry in Bangladesh
The post-covid new normal and economic recession have impacted the countries of the world. Although the West is suffering, this new situation has eased barriers and created opportunities for the globally leading software companies of Bangladesh.
But how? Forbes stated that more than 75% of businesses in the USA are service-oriented right after the pandemic. Cloud computing and software as a service subscription model have given Bangladesh's growing top IT companies an edge.
Due to the activism of student organizations, non-profit organizations, and government policies and incentives on building the industry and building a self-earning workforce to reduce unemployment, many talented resources have been created over the last 15 years. During the early years of outsourcing, the resources have been involved in less technical or clerical jobs.
The market later has demanded us to develop seasoned professionals for the global market. The developers of Bangladesh are now as experienced in programming languages and frameworks as developers from anywhere around the world.
Recently, organizations and tech teams worldwide have been hiring expensive tech talents such as Data scientists, ML engineers, and Blockchain developers from Bangladesh. Bangladesh's best software companies are proficient at catering to the latest technology.
Top 25 Software Development Companies in Bangladesh
1. Ontik Technology
Ontik Technology provides software development outsourcing services in various engagement models such as team augmentation, MVP partnership, and dedicated tech team. They are the future of the software industry. For reliable software solutions, they are praised by clients in Bangladesh as well as international clients. Ontik Technology also provides business automation services which make them one of the leading IT companies.
Ontik Technology At A Glance
Ontik Technology has several services -
Team Augmentation
Ontik Technology provides seamless integration with your in-house developers. No matter the skill set you’re looking for.
Whether you need -
- Expertise in a specific area
- Immediate skill gap
- Developers with particular skills
- Additional support
- Scale up
Team augmentation is a wonderful option if you need a certain skill set that you don't have in your development team. Team augmentation meets that gap. You also hire a range of developers specializing in a specific programming language or framework. Whether you need a QA specialist, ReactJS web developer, android developer, or IOs developer, you will get them here.
Custom Software Development
Developers at Ontik Technology have the experience to build custom software from scratch, whether you need a web or mobile application. Having an expert team of professionals in Bangladesh, they provide customized software solutions for businesses.
MVP Partnership
Our experienced product team helps startups to build their product from the ground up. Our team provides the consultancy required to ideate, innovate, build, and execute a product. Ontik implements RAD and agile SCRUM methodology through continuous integration and development.
Dedicated Tech Team
With Ontik, you can build a dedicated tech team. A dedicated tech team specializes in specific skill sets to meet the project requirements. It will work as your team under your project manager. You will have full control over the project.
2. Brainstation 23
Founded: 2006
Engineers: 700+
Technology: Full stack developer, Node.js. Angular, javascript, .NET, PHP, java, ruby, c#, c/c++
Notable Clients: Telenor, DKV
Partnership: Microsoft Gold Partner, ORACLE Gold Partner, AWS Advanced Consulting Partner
Website: https://brainstation-23.com/
Email: sales@brainstation-23.com
Working Hours: Sunday to Friday - 09:00 AM - 23:00 PM
Weekend: Saturday
Brainstation 23 has been leading and revolutionizing enterprise and customized web applications. Since its humble beginning, it has been under the supervision of CEO - Raisul Kabir. As of 2020, Brain Station 23 is recognized as CMMI Maturity Level 3 certified. The highest-paying software companies in Bangladesh that attract youth. With the industry reputation, it has become the best software company in Bangladesh.
3. Vivasoft
Founded: 2016
Engineers: 200+
Projects: 80+
Technology - GO, Flutter, Python, Angular, React, Vue JS
Java, Dotnet, Azure
Clients: DUNITE, GOAVA, Klikit, STICKLER, LIMESTONE LAB
Website: www.vivasoftltd.com
Email: contact@vivasoftltd.com
Vivasoft is the fastest-growing custom software company in Bangladesh. It provides team augmentation and custom software development services. It has quickly become one of the top IT companies in Bangladesh. It has developed an HR and payroll software called PiHR.
4. BJIT
Founded: 2001
Engineers: 1000+
Clients: Valmet, Sony, Qualcomm, Brother, Panasonic, Fuji Soft, Toshiba, Sourcenext
Website: https://bjitgroup.com/bjit-ltd
Email: afiat.rahman@bjitgroup.com
Working Hours: Sunday to Thursday - 08:00 AM - 17:00 PM
Weekend: Friday and Saturday
BJIT, a global company, is known for providing offshore services. They have offices in eight countries worldwide. They are known as one of the top custom software development companies. A joint venture company between Japan and Bangladesh. Notably, it is one of the best companies in Bangladesh. It comes first in terms of performance and experience among other best software companies in Bangladesh. Recently, BJIT has partnered up with Odoo to provide comprehensive software solutions. Odoo is known for its global ERP solutions. Over the two decades of serving global enterprises, it has become CMMI level 3 certified. One of the oldest highest paying software companies in Bangladesh.
5. Enosis
Founded: 2006
Engineers: 500+
Clients: PLANET DDS, iQ3, matrix, omnigo, infonet, smarter services
Technology: Python, Angular, React, Vue JS, Java, Dotnet
Website: https://www.enosisbd.com/
Email: info@enosisbd.com
Enosis is the best leading software company in Bangladesh. It provides Mobile App Development and Web Development services to information technology. With its proven track record, CMMI Level 3 and ISO 9001 is achieved. It provides software solutions to clients across North America and Europe. For anyone needing a more specific skill set, Enosis supports skilled professionals such as CTOs, product owners, and development managers of a technology company.
6. Cefalo
Founded: 2006
Engineers: 200+
Clients: C#, JavaScript, Kotlin, Swift, NodeJS, Python, PHP, AWS, Azure, AI, Big Data, Machine Learning, React, Angular, React Native, Solr, Elastic, IoT
Website: www.cefalo.com
Email: mail@cefalo.com
Norwegian software development company located in Bangladesh. A global software company provides offshore development teams with in-house developers. The client base is mostly from Norway. Now this company is growing very fastly in Bangladesh and getting positioned as one of the top best software companies in Bangladesh.
7. LeadSoft
Founded: 2004
Engineers: 300+
Projects: 400+
Clients: H&M Bangladesh, Novo Nordisk, MONEY SPACE, BUREAU VERITAS
Website: leadsoft.com.bd
Email: info@leadsoft.com.bd
Working Hours: Sunday to Thursday - 09:00 AM - 18:00 PM
Leadsoft creates mobile applications and outsources resources to other countries. They use emerging technologies like blockchain, the Internet of Things, artificial intelligence, and machine learning. CMMI LEVEL 5 and ISO 9001:2015 certified, enlisted in the best companies in Bangladesh.
8. REVE Systems
Founded: 2003
Engineers: 150+
Projects: 400+
Clients: H&M Bangladesh, Novo Nordisk, MONEY SPACE, BUREAU VERITAS
Website: www.revesoft.com
Email: info@revesoft.com
REVE Systems operates differently and embarks remarkably. It provides software solutions in Mobile OTT, SMS Gateway, Session Border Controllers, VoIP Softswitch, & Telecom Billing solutions. The best software company works mostly in the telecommunication sector.
9. South Tech
Founded:1996
Engineers: 90+
Projects: 45+ (Global)
Clients: Aviation ERP for Bangladesh government, SANOFI, BRAC, PACT
Website: https://www.southtechgroup.com/
Email: info@southtechgroup.com
Working Hours: Sunday to Thursday - 09:00 AM - 18:00 PM
Weekend: Friday and Saturday
Southtech specializes in providing banking solutions. It has developed a product named Bankultimus for the banking and finance sector. The solution is being used globally with a proven repeat client of 95%. The first company in Bangladesh to achieve CMMI Level 5 – V 2.0. The oldest and best software companies in Bangladesh.
10. Riseup Labs
Founded: 2010
Engineers: 200+
Projects: 700+ (Global)
Clients: UNICEF, UNDP, USAID, FAO, WHO, ATEC, BBC, Fhi360, Axiata, Murka, Safe-Guard, Swiss Marketing Systems
Website: riseuplabs.com
Email: contact@riseuplabs.com
Working Hours: Sunday to Friday - 09:00 AM - 22:00 PM
Weekend: Saturday
Riseup Labs is said to be a next-generation, top-notch software and Information Technology solutions provider in Bangladesh. ISO 9001 & 27001 compliant. It has been using the latest technological infrastructure.
They provide solutions to emerging technologies such as Web 3.0, automation, analytics, IoT, cloud, and blockchain. It is one of the diversified software companies in Bangladesh, serving multiple sectors—the best software companies in Bangladesh for next-generation solutions. They are also award-winning custom software developers in Bangladesh. Soft BD specializes in Agile PHP & JavaScript. It ensures high-quality software solutions and products for mid to large enterprises. They are a corporate-oriented software solution provider. They proudly served 100+ clients. HR Management software, Education Management, and Kiosk Management software products are innovative solutions.
11. Soft BD Limited
Founded: 2006
Engineers: 30+
Projects: 710+ (Global)
Clients: Standard Chartered, Kpapa, UNDP, Lakeshore Hotel
Website: softbdltd.com
Email: info@soft-bd.com
Soft BD specializes in Agile PHP & JavaScript. This organization is a certified software development company. It ensures high-quality software solutions and products for mid to large enterprises. They are a corporate-oriented software solution provider. They proudly served 100+ clients. HR Management, Education Management, and Kiosk Management are innovative solutions.
12. Dream 71 Bangladesh
Founded: 2014
Engineers: 250+
Projects: 200+
Clients: Integrated digital service delivery platform for Ministry of Chittagong hill tracts affair (Mochta), Educational Game for the Ministry of Education Timor-Leste, Dhaka was
Website: dream71.com
Email: info@dream71.com
Working Hours: Sunday to Friday - 09:00 AM - 22:00 PM
Weekend: Saturday
This company has been a changemaker in educational game development. Dream71 Bangladesh Ltd is one of the best software developers. Notable milestones have been passed over the several years by developing customized software solutions. It helps them develop numerous global NGO and ed-tech platforms.
13. Kaz Software
Founded: 2004
Engineers: 150+
Projects: 200+
Clients - THE WORLD BANK, UNICEF, BRITISH RED CROSS, OXFAM, Swiss contact
Email - info@kaz.com.bd
Website - kaz.com.bd
Working Hours - Monday To Friday - 10:00 AM - 19:00 PM
Weekend: Saturday
Delivering top-notch software solutions, Kaz Software is one of the top and global software company in Bangladesh. They are specializing in custom software development and web development for overseas clients. They also offer talent outsourcing. Rather than developing a new project, they work with the existing IT professionals of clients. Tech professionals adopt Agile methodology in the software development lifecycle (SDCL).
14. Bondstein
Founded: 2014
Engineers: 40+
Website - www.bondstein.com
Email - iinfo@bondstein.com
Working Hours - Sunday To Thursday - 10:00 AM - 18:00 PM;
Weekend: Friday and Saturday
The local software solution provider in Bangladesh. When you are looking for one of the best custom software development companies in Bangladesh in 2024, I have to mention this evolving organization. They are the market lead in providing IoT services, helping businesses integrate with connected technology, and leveraging operational efficiency.
15. 6senseHQ
Founded: 2016
Engineers: 40+
Headquarters: Dhaka, Bangladesh
Specialties - Artificial Intelligence, IOS, ERP, Design Thinking, Prototyping, Web, User Experience, and Android
Website - http://6sensehq.com/
Email - hello@6sensehq.com
They focus on building reliable offshore teams for companies that want to ship faster without hiring a full in-house squad. As an Offshore software development company, their strength is in dedicated teams and staff augmentation so clients get skilled engineers, clear delivery, and steady support without the usual offshore hassle.
16. Pridesys IT
Founded: 2013
Engineers: 150+
Projects: 30+
Website - pridesys.com
Working Hours - Sunday To Thursday and Monday To Friday
Clientele - Online database software for BFFWT, Ananta Group, Nassa group
Email - mark@nascenia.com
Working Hours - Monday To Friday - 09:00 AM - 19:00 PM;
Weekend: Friday and Saturday
Email - info@southtechgroup.com
ERP solution provider in Bangladesh. Designed and developed custom ERP software for RMG, government, and a group of companies. A local ERP system in Bangladesh. Recognized with ISO:9001, 2015, ISO 27001 international standards for the best software development practices. Experience IT professionals make it the best software company in Bangladesh.
17. Selise
Founded: 2013
Engineers: 150+
Projects: 30+
Website - selisegroup.com
Working Hours - Monday To Friday
Swiss-based consulting and software development company registered in Bangladesh. Exceptional track record in consulting, process engineering, platform development, and application management. In Bangladesh, Keeron, an e-learning platform, has built a custom website from Selise. The renowned CRM platform Hubspot has partnered with Selise to develop strategic solutions.
18. Bdtask
Founded: 2012
Engineers: 200+
Projects -Hospital Management Systems, Doctor Appointment and prescription Systems, ERP Software, Pharmacy Software, Wholesale Software, Online News Portal Systems, Human Resource (HR) Software, Newspaper WordPress Theme, Admin Panel, Online Ticketing Software, Online Quiz System, Travel and Tour WordPress Theme, Material Design Admin Panel, Development - IOs
Website - bdtask.com
Email - business@bdtask.com
Bdtask has taken a different route from other software companies in Bangladesh. They developed ready software in multiple sectors. Apart from developing software, they expanded into the global software market. The ready-made software is exported to Europe, North America, and South East Asia. A proud partner of Envato for creating HTML templates and design materials. It has become on the list of top software companies in Bangladesh.
19. Dynamic Solution Innovators
Founded: 2001
Engineers: 400+
Projects - ODMS, OpenCRVS, Olwel, Criminal Transaction Reporting System, TTMS
Website: info@dsinnovators.com
Email: info@ixorasolution.com
Working Hours: Sunday to Thursday - 10:00 AM - 18:00 PM
Weekend: Friday and Saturday
DSI provides web-enabled e-commerce and ERP systems as well as wireless systems across a broad range of industries. It has offices in the USA and Bangladesh. They have clients in Asia, England, Finland, and the United States. ISO/IEC 27001:2013 and ISO 9001:2015 certified. These industry standards got them affiliated with many international clients. CMMI appraised.
20. Orange IT
Website: https://www.orangebd.net/
Email: info@orangebd.net
Orange IT Ltd., is a trusted provider of network infrastructure implementation and cybersecurity services. It offers customized solutions for network design, security assessments, and incident response. With its proven industry reputation, it has become the best software firm in Bangladesh.
21. Workspace Infotech
Founded: 2004
Engineers: 200+
Website - workspaceit.com
Email - info@workspaceit.com
A leading software firm in Bangladesh and Australia. The finest thing is that they provide convenient resource outsourcing for global businesses. It provides various services, from software development to digital products. They are specialized in virtual assistance to get the job done daily, such as data entry, HR work, call center, and operation.
22. Daffodil Software
Founded: 2001
Engineers: 200+
Technology - Java, Microsoft .Net, PHP & My SQL, and Android & IOS (Mobile Apps)
Working Hours - Sunday To Thursday
Email - cloud. daffodil.computer
Working Hours - Sunday To Thursday
Weekend: Friday and Saturday
A local service provider with an enriched portfolio. The leading local ERP system in Bangladesh. It has services like Odoo ERP customization services, eCommerce development, software testing, and cloud services. It has several SaaS products for general task management in businesses and corporates. Such as smart business24, smart hospital, and school management. These products give solutions to multiple business sectors and are positioned as the top software companies in Bangladesh.
23. Craftsmen Ltd
Founded: 2006
Engineers: 80+
Technology - Node.js, Angular, JavaScript, .NET, PHP, Java, Ruby, C#, and C/C++
Working Hours - Sunday to Friday
Website: https://craftsmenltd.com/
Email - sales@craftsmenltd.com
Working Hours - Sunday to Friday from 09:00 AM to 23:00 PM
ICraftsmen Ltd., positioned as a top-growing IT company in Bangladesh, has been at the forefront of driving innovation in enterprise and bespoke web applications. Under the astute leadership of CEO Raisul Kabir, Craftsmen Ltd. has continually evolved since its inception. Notably, in 2020, Craftsmen Ltd. achieved CMMI Maturity Level 3 certification, a testament to its commitment to excellence and adherence to industry standards. Renowned as one of the highest paying software companies in Bangladesh, Craftsmen Ltd. has become a magnet for talented youth seeking rewarding career opportunities in the IT sector. Its stellar reputation within the industry solidifies Craftsmen Ltd.'s position as the premier software company in Bangladesh.
24. Astha IT
Founded: 2022
Technology - Java, Laravel, NodeJs, Vue, React
Working Hours - Sunday To Thursday
Projects: BizzyB, an educational app in the US; The Pantry an e-commerce setting in Hawaii
Website: https://www.asthait.com
Working Hours - Sunday To Thursday
Weekend: Friday and Saturday
The top-rated and vetted coding talent specializing in scalable solution development. It brings coding talent, DevOps, and cloud experts from Bangladesh's software company list. ISO 9001:2015 (QMS) certified from Bangladesh software company list. It excels in providing exceptional quality software for large enterprises in Bangladesh.
25. Tiger IT
Founded: 2000
Engineers: 200+
Projects: Suspect Identification and Verification System (SIVS), Myanmar National’s Biometric Registration System, Voter Registration System Software Development and Services for Nepal
Website: www.tigerit.com
Email: info@tigerit.com
Working Hours: Sunday to Thursday - 10:00 AM - 18:00 PM
Weekend: Friday and Saturday
Tiger IT provides end-to-end solutions for government and state agencies. It is said that the IT company has taken the position of the best software company in Bangladesh. The South Asia sub-continent has delivered numerous government projects. It is the hub for software development. The company is renowned for its commitment to delivering high-quality software products dealing with sensitive data. For serving in government and state agencies it has become the leading software company in Bangladesh.
How To Select The Top Software & IT Companies?
Selecting a software company seems complicated, but it doesn't have to be. Industry standards and outsourcing country's technological trends are a must for Bangladeshi software companies. To help you the right way, you'll be given the honor of selecting the best software companies in Bangladesh.
(1) Software Industry Standards
- The software industry is experiencing diverse requirements from global businesses. The International Organization for Standardization (ISO) has established several standards for the IT industry.
- The ISO/IEC 27000 keeps all sizes of organizations ' business policies under best practices. ISO 9001 is a common achievement for the top IT companies.
(2) Industry Experience
- How long has the software company been in the industry? Go for a fact-check.
- Companies that have been established from 1950 to 1999 seem professional.
- The world has undergone massive technological changes, and those companies had hands-on experience during that time.
(3) Enriched Portfolio
- Have they developed similar software according to your requirements?
- If you will develop custom software for appointment scheduling, rescheduling, and cancellations, then ask the service provider a few queries to get the most out of it.
- What type of software was developed?
- Have they developed MVP? If so, what were their initial challenges?
- How do they look and perform?
- Can you see some examples or demos of their projects?
Future Prospects of the Software Industry in Bangladesh
It is estimated that the software industry in Bangladesh will be worth $5b in 2026. The number itself is huge. Bangladesh has been a promising destination for offshore and talent outsourcing in South East Asia. Cost-effective rates and equivalent talent sharing make easy access to capture the attention of leading global software companies. Bangladesh is also home to experienced IT professionals and the best growing software companies in the country.
Final Thoughts
Finding the best software company takes time and effort. Wrong hiring can result in substantial loss of the company. Whether you hire NodeJS or Python, Ontik is your best partner and go-to service provider for several engagement models, such as team augmentation, MVP partnership, and a dedicated tech team.
As of now, these are the best It companies in Bangladesh. It depends on transparent communication, comprehensive screening, developers' experience and individual profiles, team collaboration, realistic timetables, flexibility, and performance monitoring. Whenever you hire a software company in Bangladesh, have a checklist of these terms for the project. All the best software companies in Dhaka are listed above.
Embarking on the journey to create the next big tech product begins with building a solid MVP, or Minimum Viable Product, that works in the market. This step is crucial but also complex, as it involves bringing together a diverse team with skills ranging from product management to UI/UX design, and from front-end development to quality assurance. However, many startups operating on tight budgets—often in their bootstrapping or pre-seed phases—find themselves having to scale back their ambitions. Moreover, even well-funded startups can find the recruitment and onboarding process overwhelming. This challenge can overshadow other essential business priorities, such as developing effective branding and marketing strategies, leaving founders stretched thin and stressed.
A proper MVP (Minimum Viable Product) development partner company can help bring your ideas to life. So, what is an MVP? It is like a simple test version of your digital product. It helps you see if people like it before adding additional features. You start basic, then improve based on feedback.
However, several standout firms are leading the pack, offering excellent services to turn your vision into reality. And today, I'll share the list of top MVP development companies, along with tips to help you find your potential partner. We'll also discuss the important details of these firms, highlighting their strengths and capabilities. Whether you're a startup, or an established business looking to innovate, these companies have the expertise you need. They can bring your vision to life. So, what are you waiting for? Start scrolling!
Top MVP Development Company in 2026 to Boost Your Business
The list of MVP development companies considered best internationally based on the preferences of various startup companies or businesses is provided below. From developing apps to creating software solutions, these companies are experts in providing cost-effective and efficient MVP development.
1. Ontik Technology
- Website: www.ontiktechnology.com
- Notable Services: Web development, MVP Development services, Custom Software Development service, UI/UX Design, Cybersecurity, etc.
- Established: 2016
- Location: Australia
- Employee Size: 50 - 100
- Google Reviews: 4.5 Stars
Ontik Technology stands out as a top firm for MVP development worldwide due to several key strengths and capabilities. Since its establishment, it has built a solid reputation by successfully completing over 120 projects across 20+ countries. They have a dedicated development team of developers who are good at solving tough problems and creating high-quality products.
Ontik Technology sets itself apart not only through its technical prowess but also through its personalized approach to client service. They take the time to listen attentively to their clients' ideas, concerns, and vision for the project. Their team goes the extra mile to ensure that clients feel valued and supported throughout the development process.
Additionally, Ontik's commitment to client satisfaction extends beyond project completion. Developers offer ongoing support and maintenance services, ensuring that the product continues to perform optimally.
Their proactive approach to customer care fosters long-term partnerships based on trust and mutual success. They work closely with clients to ensure the final product meets their needs and expectations. So, if you are looking for one of the top MVP Development companies, Ontik Technology is your ideal choice. You can also hire remote developers for your project.
2. DevSquad
- Website: www.devsquad.com
- Notable Services: SaaS App Development, Mobile App Development, Web App Development, Custom Software, MVP Development Services for Startups
- Established: 2014
- Location: Salt Lake City, Utah, USA
- Employee Size: 11-50 employees
- Min. Project Size: $25,000+
- Google Review: Not Available
- Glassdoor Review: 5 Stars
DevSquad excels in MVP development due to its comprehensive team structure. The structure includes experienced developers, product managers, UX/UI designers, and DevOps engineers. Their agile development approach ensures efficient and validated feature development exactly what a business would look for.
Emphasizing strategic alignment, they focus on client business goals and user needs, delivering MVP products that meet market demands. DevSquad’s proven track record with startups and Fortune 500 companies, high-quality talent, and stringent security measures further solidify its reputation.
3. Purrweb
- Website: www.purrweb.com
- Notable Services: UI/UX design, product strategy, software development, MVP Development
- Established: 2014
- Location: Saint Petersburg, Russia
- Employee Size: 51-200 employees
- Google Review: 4.4 Stars
Purrweb is a top choice for MVP (Minimum Viable Product) development outsourcing because they specialize in quickly turning ideas into functional products. Their team is experienced in creating user-friendly designs and efficient code, which helps startups test their ideas in the market quickly. Purrweb’s streamlined MVP development process ensures clear communication and timely delivery. Their focus on modern technologies and trends ensures that the MVPs they develop are competitive and up-to-date.
4. Net Solutions
- Website: www.netsolutions.com
- Notable Services: Web development, MVP Development, Custom Software Development, Digital marketing
- Established: 2000
- Location: Chandigarh, India
- Employee Size: 501-1000 employees
- Google Review: 4.3 Stars
Netsolutions stands out for MVP (Minimum Viable Product) development outsourcing due to its expertise, experience, and client-centric approach. With a solid track record, they consistently deliver high-quality MVPs for both startups and established businesses, ensuring core features are market-ready. They maintain transparent communication, keeping clients updated throughout the development process.
Net solutions also offers flexible, scalable solutions tailored to different project requirements and budgets. Their focus on understanding client objectives and commitment to innovation makes them a dependable choice for bringing concepts to life successfully.
5. Intellectsoft
- Website: www.intellectsoft.net
- Notable Services: Mobile app development, Web development, Blockchain development, MVP Development
- Established: 2007
- Location: Palo Alto, California, USA
- Employee Size: 201-500 employees
- Glassdoor Review: 4.6 Stars
Intellectsoft emerges as the premier choice for MVP (Minimum Viable Product) development outsourcing, boasting a stellar reputation and unparalleled expertise. Their unwavering dedication to customer satisfaction shines through in every interaction.
They invest time and effort to truly grasp your vision, offering tailored guidance every step of the way. With a focus on transparent communication and efficient project management, Intellectsoft ensures a seamless development journey. Intellectsoft ensures delivering results promptly and proficiently.
6. Miquido
- Website: www.miquido.com
- Notable Services: Custom Software Development, MVP Development, mobile and web MVP development, UX/UI design, app development
- Established: 2011
- Location: Kraków, Poland
- Employee Size: 201-500 employees
- Google Review: 5.00 Stars
Choosing Miquido for your MVP development project offers several advantages. They have extensive experience across various industries, ensuring your product benefits from their broad expertise. Technically proficient, Miquido employs cutting-edge technologies to build scalable and secure MVPs.
Their user-centric approach ensures the MVP resonates with target audiences through thoughtful UX design and usability testing. Additionally, Miquido offers post-launch support, providing ongoing maintenance and enhancements to keep your product competitive. Overall, they can help you transform your idea into a successful product.
7. SumatoSoft
- Website: www.sumatosoft.com
- Notable Services: Web development, mobile app development, custom software development
- Established: 2012
- Location: Minsk, Belarus
- Employee Size: 51-200 employees
- Glassdoor Review: 3.8 Stars
SumatoSoft is one of the best software development companies for startups. It has a broad geographical reach and the experience to handle diverse market demands. SumatoSoft specializes in creating high-quality business applications, including web, mobile, and IoT solutions. Their focus on MVP development means they have honed processes and methodologies that effectively bring products to market quickly and efficiently.
They work extensively with small and mid-sized businesses across various industries. In summary, SumatoSoft is a preferred partner for startups and businesses looking to develop robust MVPs and eventually scale their products successfully.
8. Digiteum
- Website: www.digiteum.com
- Notable Services: Custom software development, web development, mobile app development, UI/UX design
- Established: 2010
- Location: Minsk, Belarus
- Employee Size: 51-200 employees
- Google Review: 5 Stars
Digiteum offers a broad range of technological skills, which allows them to handle complex and innovative MVP projects effectively. This MVP company has a solid history of successful MVP projects across various industries, including retail, healthcare, and technology. They emphasize extensive research and validation in the initial stages.
Moreover, This MVP developer is known for its strong client relationships and personalized service. Testimonials from various startups and enterprises. All these highlight Digiteum's proactive, diligent, and responsive approach.
9. Classic Informatics
- Website: www.classicinformatics.com
- Notable Services: Web development, custom MVP software development, digital marketing, etc
- Established: 2002
- Location: Gurugram, India
- Employee Size: 201-500 employees
- Glassdoor Review: 4.4 Stars
With years of experience, Classic Informatics knows the ins and outs of MVP development across various industries. Whether you're in healthcare, finance, or e-commerce, we've got you covered! They offer a wide range of services and tailored solutions to meet business needs.
The company also offers competitive pricing and efficient resource management to give you the best. The company leverages the latest tools and technologies to create cutting-edge MVPs. This includes modern frameworks, cloud services, and advanced development practices. All these key factors make Classic Informatics a top MVP app development company.
10. Elinext
- Website: www.elinext.com
- Notable Services: Custom software development, web development, mobile app development
- Established: 1997
- Location: Minsk, Belarus
- Employee Size: 201-500 employees
- Glassdoor Review: 4.3 Stars
Elinext's capability to provide innovative solutions tailored to the unique needs of each business can set it apart from competitors. This involves creative problem-solving, cutting-edge technologies, or unique features in their MVPs. Elinext has a wealth of experience in developing MVPs across various industries, including healthcare, finance, e-commerce, and more. Their experience allows them to understand the unique needs of each project and deliver tailored solutions.
Elinext understands that every project is different and requires a customized approach. Overall, their combination of experience, expertise, customization, and innovation makes them a top choice for MVP development.
How Do You Find an Affordable MVP Development Company
Finding an affordable MVP development company requires careful consideration and research. By following these steps, you can navigate through options effectively and choose a partner that fits your budget while delivering quality results.
1. Research Online
Start your search by browsing the web for MVP development firms. Look at their websites, read reviews, and explore case studies to gather insights into their capabilities, reliability, and client satisfaction levels.
2. Evaluate Portfolios
Take time to carefully review the portfolios of potential MVP development companies. Look for projects similar to yours, assess the quality of their work, and consider how well their solutions align with your project goals.
3. Consider Pricing Models
Compare the pricing structures offered by different MVP development companies. Some may charge hourly rates, while others offer fixed-price packages based on project scope. Choose a pricing model that suits your budget and project requirements best.
4. Seek Referrals
Tap into your network to gather recommendations for reliable MVP development companies. Reach out to colleagues, friends, or industry contacts who have experience in this area. Their firsthand experiences and insights can help you make informed decisions.
5. Assess Technical Expertise
Engage in detailed discussions with potential MVP development companies to assess their technical expertise. Evaluate their understanding of your project requirements, the feasibility of their proposed solutions, and their ability to address any technical challenges that may arise.
6.Negotiate Terms
Once you've shortlisted a few potential partners, initiate negotiations to finalize terms and pricing. Be clear about your budget constraints and project expectations, and work towards reaching a mutually beneficial agreement that ensures value for both parties.
Best MVP Development Company: 15 Main Requirements
In the dynamic landscape of MVP development, finding the right company is crucial. To ensure success, consider factors like expertise, adaptability, and communication. Here's a guide to help understand the main requirements and choose the best fit.
- Expertise in MVP development
- Proven project track-record
- Industry adaptability
- Diverse portfolio showcase
- Transparent communication
- Budget understanding
- Agile methodology adoption
- Skilled versatile team
- Deadline commitment
- Scalability focus
- User feedback prioritization
- Proactive problem-solving
- Effective project management
- Ongoing support commitment
- Collaborative teamwork
Top 10 MVP Development Companies for Startups (Quick View)
Short on time? Here's a concise summary of the top companies offering MVP development for startups. Use this quick overview to identify potential development partner without diving into the intricacies of each.
Leading MVP Development Companies: How Do You Choose The Best Partner For Your MVP
Choosing the right company to help create your MVP is important. You need to consider what they know, how much experience they have, and if they'll help you even after your product launches.
Here, I have shared tips on how to choose your partner from the popular MVP development companies.
Industry Knowledge: Choose a partner that understands your industry's current landscape and anticipates future trends and challenges. Their in-depth knowledge can ensure that your MVP is strategically aligned with industry needs and user expectations.
Experience and Expertise: Prioritize companies with extensive experience in MVP development across various industries and project scopes. Look for evidence of their expertise in overcoming challenges and delivering high-quality, innovative solutions.
Technical Proficiency: Seek out firms with a strong technical foundation and a demonstrated ability to leverage the latest tools and technologies effectively. Their proficiency in coding languages, frameworks, and development methodologies is crucial for building a robust and scalable MVP.
Budget-Friendly Rates: While cost is a significant factor, consider the overall value offered by the development company. Look for partners who provide transparent pricing structures and are willing to work within your budget constraints without compromising on quality.
Portfolio for Relevant Projects: Evaluate the company's portfolio to assess the relevance and complexity of its past projects. Look for examples that align closely with your MVP's goals and target market, indicating their ability to deliver tailored solutions.
Open Communication: Effective communication is essential for project success. Choose a partner that fosters a culture of transparency, collaboration, and accessibility. Regular updates, clear milestones, and responsive feedback mechanisms are key indicators of open communication.
Happy Client Testimonials: Testimonials and case studies from satisfied clients provide valuable insights into a company's reliability, professionalism, and commitment to client success. Pay attention to specific examples of how the company exceeded expectations and addressed challenges.
Post-launch Support: Beyond development, prioritize partners who offer comprehensive post-launch support and maintenance services. This includes proactive monitoring, timely bug fixes, performance optimization, and regular updates to ensure the long-term success and sustainability of your MVP.
With the Help Of Ontik Technology Create Your Good Ideas Into Great Products
It's impressive how Ontik Technology meets all the requirements for being a top MVP development company. The company excels in MVP development with a proven track record, industry versatility, and diverse portfolio. Their dedication to excellence, cordial approach, and technical expertise undoubtedly set them apart from other development firms. From robust functionality to seamless user experience, they have it all covered.
Clients can trust this company to bring their ideas to life efficiently and effectively. No wonder they're gaining recognition as a leader in MVP development. By partnering with a reputable MVP company like Ontik Technology, you can accelerate your product's time to market. In the meantime, you can also ensure a solid foundation for future growth and success. So, what are you waiting for? Contact their team of professionals today!
Conclusion
In conclusion, when it comes to finding the top MVP development company, it's essential to consider factors such as expertise, experience, and customer reviews.
Through thorough research and analysis, we've explored some of the leading companies in this field. Each has its unique strengths and offerings. Whether you're a startup looking to validate your idea or an established business aiming to launch a new product efficiently, these companies stand out for their commitment to quality and customer satisfaction. Compare them and choose your potential partner smartly!
Key Takeaways
- Dedicated teams act like your remote in-house squad.
- Hire them through a clear vetting process (scope → checks → interviews → contract).
- Best for long-term, changing products; not ideal for tiny short projects.
- Results depend on onboarding, communication, and measurable delivery KPIs.
- Lock down IP ownership, security, and compliance in the agreement from day one.
Guess what? Tech giants like Google, Facebook, Alibaba, and WhatsApp hire dedicated development teams - for their long-term software development projects. But why? When you hire a dedicated software development team, you lighten the load on management and tap into specialized skills at the same time. It's considered the most cost-effective optimal partnership model out there.
So, in this article, I'll cover the concept of a dedicated development team, its ins and outs, and provide guidance on hiring a dedicated development team from the market. Plus, this comprehensive guide includes everything you need to know before hiring a dedicated software development team.
This is not just the end. There is more for you to explore! So, why wait? Get started right away!
What is A Dedicated Development Team?
Before you sign a contract, you must understand exactly what you are buying.
A Dedicated Development Team is a business model in software outsourcing where a client partners with a vendor (like Ontik Technology) to hire a team of software professionals who work exclusively on the client's projects.
How It Works in Practice
Unlike hiring freelancers who juggle five different clients, or a project-outsourcing firm that delivers a "black box" product, a dedicated team acts as a seamless extension of your existing workforce.
- Exclusivity: They work 40 hours a week only for you.
- Integration: They use your tools (Jira, Slack, GitHub, MS Teams).
- Culture: They attend your town halls, daily stand-ups, and retrospectives.
- Management: While the vendor handles payroll and HR, you (or your CTO/Product Manager) direct the technical workflow.
Think of it as having a remote branch office. If you are based in New York, and you hire a dedicated team through Ontik Technology in Bangladesh, it’s functionally the same as opening a satellite office, minus the headache of leasing office space, buying furniture, or navigating local labor laws.
How to Hire a Dedicated Team (Step-by-Step)
Hiring the right team is a process, not a transaction. Here is the framework we recommend at Ontik Technology.
Phase 1: Preparation
- Define the Scope: What are we building? (MVP, Version 2.0, Legacy Migration).
- Define the Stack: Be specific. "Javascript" is too vague. "React.js frontend with Node.js backend and GraphQL" is precise.
- Define the Culture: Do you need a team that blindly follows orders, or one that pushes back and offers better solutions? (Hint: You want the latter).
Phase 2: Research & Vetting
- Check the Portfolio: Have they built software in your industry? A team great at e-commerce might struggle with HIPAA-compliant healthcare apps.
- The "Vibe Check": During the sales call, are they asking about your business goals? Or just talking about their rates? A true partner wants to understand why you are building this.
- Client Reviews: Look at platforms like Clutch or GoodFirms, but also ask to speak to a current client.
Phase 3: The Interview (Crucial Step)
Don't just trust the vendor's resume. Interview the key players.
- Interview the Team Lead: This person is your anchor. Test their English proficiency, their architectural knowledge, and their leadership style.
- Technical Assessment: Give them a small, paid coding challenge. It reveals how they think, how they document code, and how they handle feedback.
Phase 4: The Contract
Ensure your Master Services Agreement (MSA) covers:
- IP Protection: Explicit clauses stating you own the code, designs, and data.
- Non-Solicitation: Rules about hiring their devs directly.
- Notice Period: How much notice to give before scaling down? (Standard is 30 days).
Services Provided by Professional Service Firms Globally in 2026 & Updated Projections
Key Market Trends for 2026-2030:
Total Market Context: The Global IT & Professional Services market is projected to exceed $1.6 trillion by 2030, driven fundamentally by the inability of internal teams to keep pace with technological change.
Major Growth Drivers (2026-2030):
- The "AI-First" Mandate: By 2026, AI consulting is no longer about "exploring" options but deploying production-grade agents. Generative AI implementation services alone are growing at 32.4% CAGR.
- Cybersecurity as a Service: With new regulations in the EU and North America, Managed Security Services (MSS) are growing at 13.7% annually. Companies are hiring dedicated security teams just to remain compliant.
- The Hybrid Cloud Reality: As enterprises juggle on-premise servers with AWS/Azure, they are turning to Dedicated DevOps Teams to manage the complexity.
- Sustainability & ESG: Sustainability consulting is set to grow 16% annually through 2030, as companies are required to audit and report their carbon footprint.
Regional Highlights:
- North America remains the largest buyer, accounting for ~35% of global demand, particularly in AI and Cloud services.
- Asia Pacific is the fastest-growing region (15.1% CAGR) for providing these services, solidifying its role as the world's "back office" for high-end engineering talent.
Dedicated Team vs. Other Engagement Models
Choosing the right engagement model is as critical as choosing the right technology. In 2026, the lines between outsourcing models can blur, but the operational differences remain distinct. To decide if a dedicated software development team is right for you, we must compare it against the other dominant market models: Staff Augmentation, Fixed Price, and Time & Material (T&M).
Dedicated Team vs. IT Staff Augmentation
While often used interchangeably, these are fundamentally different approaches to scaling.
- Staff Augmentation is a "resource-based" model. You are renting specific individuals (e.g., "I need one React developer for 3 months") to fill a temporary skill gap in your existing internal team. You retain 100% of the management burden.
- Dedicated Team is a "capability-based" model. You are hiring a cohesive unit (Developers + QA + PM) to take ownership of a product or module. The vendor (Ontik Technology) manages the HR, administration, and team retention, while you focus on the product roadmap.
- Verdict: Use Staff Augmentation for temporary patches. Use Dedicated Teams for long-term product development and capacity building.
Dedicated Team vs. Fixed Price Model
- Fixed Price relies on a rigid scope. You define exact requirements upfront, and the vendor quotes a single price. This works for small, well-defined MVPs but fails in Agile environments where requirements evolve. In 2026, agility is currency; rigid contracts often lead to "change order" wars and delayed launches.
- Dedicated Team is built for Agile. You pay a monthly retainer, and the scope can change daily based on user feedback or market shifts.
- Verdict: Use Fixed Price for small, static projects (<$50k). Use Dedicated Teams for dynamic, evolving platforms.
Engagement Model Comparison Matrix
The Structure of A Typical Dedicated Development Team
When it comes to getting things done in software development dedicated team projects, having a well-structured team is key. Whether you're looking to hire dedicated software development teams or establish a dedicated development team Philippines partnership, understanding team structure is crucial. Here's a typical structure of a dedicated tech team shared by our team at Ontik Technology:
- Project Manager/Scrum Master: The project manager oversees planning, scheduling, and task coordination, ensuring project management excellence.
- Software Developers: Write code and implement features.
- Quality Assurance Engineers (QA): Ensure software quality through rigorous testing.
- UI/UX Designers: Craft user-friendly interfaces.
- DevOps Engineers: Facilitate smooth deployment and operation of software.
- Product Owners: Relay stakeholder needs and priorities.
- Technical Team Leads: Guide technical decisions and maintain code quality.
- Support Personnel: Handle post-deployment issues.
- Documentation Specialists: Maintain essential project documentation.
- Additional Roles: Such as security specialists may be included based on your needs and project requirements.
Pros and Cons of Dedicated Developers Team Structure
To make the right choice, you need to weigh the tangible benefits against the operational realities.
The Benefits: Why It Works
- Cost Efficiency: You pay a predictable monthly rate. Eliminate recruitment fees, insurance premiums, hardware costs, and severance risks.
- Instant Scalability: Need to ramp up for a launch? Add developers in weeks, not months. Need to scale down? Do it instantly without the legal headache of layoffs.
- Specialized Expertise: Access global talent pools for niche skills (like AI or Legacy Migration) that are scarce or overpriced in your local market.
- Faster Time-to-Market: With a team dedicated exclusively to your roadmap, you eliminate context-switching. This translates to faster sprints and quicker releases.
- Domain Knowledge Retention: Unlike freelancers who leave after a task, a dedicated team stays. They master your code and business logic, becoming faster and more autonomous over time.
- Strategic Focus: By offloading execution to a dedicated unit, your internal leadership can refocus on core business strategy and growth.
The Cons: Challenges to Manage
- Integration Effort: Success requires structured onboarding. If you treat them like outsiders, they will perform like outsiders.
- Communication Silos: Without clear protocols, "us vs. them" gaps can form. (We address this in the Management section).
- Time Zone Differences: A 12-hour gap can slow you down unless you establish "Golden Overlap" hours for synchronous meetings.
Required Skills For A Dedicated Software Team
Planning to hire dedicated software development team members? Whether you need dedicated software engineers or a dedicated app development team, here are the essential skills required for a successful team dedicated software development:
When you hire dedicated teams, make sure they're equipped with all the right skills! Look no further than Ontik Technology, boasting a top-notch dedicated software development teams roster that ticks off all these skill requirements with excellence.
Things to Know Before Hiring A Dedicated Team for Your Software Projects
When you hire software development team members or hire development teams, several factors determine success. If you're aiming for a successful development project, there are some key factors you definitely need to think about. Take a look at this list of essentials for a great collaboration when hiring dedicated development team members:
Skill Set: Ensure the team possesses the necessary skills for your project, including programming languages, frameworks, and relevant technologies. This ensures they can handle the technical requirements efficiently.
Experience: Look for a team with a proven track record in similar projects. Experience brings expertise and the ability to foresee potential challenges, ultimately leading to smoother project execution.
Communication: Effective communication is key. Ensure the team can clearly understand your requirements and provide regular updates on progress. This fosters collaboration and ensures alignment throughout the project lifecycle.
Flexibility: Projects can evolve. So it's crucial to have a team that can adapt to changes quickly without compromising quality or timelines.
Portfolio: Review their past projects to gauge the quality of their work. This way, you can see if they align with your expectations and standards. Click to go through our portfolio to check out our featured work.
Reviews/Testimonials: Check client testimonials or reviews. It will help you to get insights into their reputation and reliability.
Project Management: Ensure the team has strong project management capabilities to plan, execute, and deliver your development project effectively on time and within budget.
Why Hire A Dedicated Development Team?
Hiring a dedicated development team offers numerous benefits, especially for businesses aiming to create software solutions or digital products. Whether you need developers outsourcing dedicated team services or a self-managed dedicated software team, here are the top eight reasons why you should consider hiring a dedicated development team:
Expertise and Specialization
Dedicated development team services often comprise experts in various technologies and programming languages. They bring a wealth of experience and specialized skills from a global talent pool to the table, ensuring high-quality development work.
Flexibility and Scalability
Dedicated software development teams can be scaled up or down according to project requirements. This flexibility allows businesses to adapt quickly to changes in workload or project scope without the hassle of recruitment or layoffs.
Cost-Effectiveness
When you hire a dedicated software development team, it can be more cost-effective than maintaining an in-house team, especially for long-term or project-based work. Businesses can save on overhead costs such as salaries, benefits, office space, and equipment.
Faster Time-to-Market
Dedicated development teams are focused solely on your project, which often leads to faster development cycles and quicker time-to-market for your product or service. Their expertise and experience help streamline the development process and minimize delays.
Access to Latest Technologies
Technology is constantly evolving, and dedicated software teams stay updated with the latest tools, frameworks, and methodologies. This ensures that your project is developed using cutting-edge technologies, resulting in a competitive edge in the market.
Dedicated Communication and Collaboration
With a dedicated team, communication channels are streamlined, and collaboration is enhanced. Project managers can easily coordinate with developers, designers, and other team members, ensuring everyone is aligned toward common business goals.
Focus on Core Competencies
Outsourcing development tasks to a dedicated team for software development allows businesses to focus on their core competencies and strategic objectives. Instead of worrying about technical intricacies, businesses can concentrate on innovation, marketing, and growth strategies.
Risk Reduction
By partnering with a reputable dedicated development company, businesses can mitigate various risks associated with software development, such as project delays, cost overruns, and quality issues. Many dedicated team services offer service-level agreements (SLAs) and warranties to guarantee project success.
These benefits make it a compelling option for businesses looking to accelerate their software development initiatives and achieve their business objectives.
Operational Excellence: Managing Your Dedicated Team
Hiring the team is only the first step. The "Operational Vector", how you manage, integrate, and measure that team, determines your ROI. Successful distributed teams in 2026 run on clear protocols, not just good intentions.
The "Golden Overlap" Strategy
Time zone differences are often cited as a challenge, but they can be an asset if managed via the Golden Overlap. This is a designated 3-4 hour window where your in-house team and your dedicated remote team are both online simultaneously.
- Synchronous Time (The Overlap): Use this for Daily Stand-ups, Sprint Planning, and architectural reviews.
- Asynchronous Time (The Deep Work): Use the rest of the day for coding and documentation. This "follow-the-sun" model can effectively double your development velocity.
Onboarding Best Practices
Don't let your new team sit idle on Day 1.
- Technical Access: Provision access to Jira, GitHub/GitLab, Slack, and Cloud Environments (AWS/Azure) 48 hours before the start date.
- Knowledge Transfer: Create "Loom" videos or Confluence docs explaining your domain logic. Don't just explain what to build; explain why it matters to the business.
- The Buddy System: Pair a dedicated team lead with an internal engineering lead to foster cultural integration.
KPIs and Metrics: Measuring Success
Move beyond "hours worked." In 2026, high-performance engineering management relies on DORA metrics and Agile KPIs:
- Cycle Time: The time it takes for a ticket to move from "In Progress" to "Deployed."
- Sprint Velocity: Is the team delivering consistent Story Points sprint-over-sprint?
- Defect Leakage: Track how many bugs escape to production. A dedicated QA layer should keep this near zero.
- Code Churn: High churn (rewriting recent code) indicates unclear requirements or communication gaps.
Security, IP & Compliance
In an era of AI-generated code and increasing cyber threats, security cannot be an afterthought. When you hire a dedicated development team, you are extending your security perimeter.
Intellectual Property (IP) Protection
Your greatest asset is your code.
- "Work Made for Hire": Your contract with Ontik Technology explicitly states that all code, designs, algorithms, and documentation created during the engagement are "Work Made for Hire." This means you own the Intellectual Property (IP) from the moment it is created.
- Non-Disclosure Agreements (NDAs): We enforce strict NDAs at two levels: a corporate NDA between you and Ontik, and individual NDAs signed by every developer working on your project.
Data Security & Compliance
- Secure SDLC: Our teams follow a Secure Software Development Lifecycle. Security isn't just a firewall; it's baked into the code (e.g., OWASP Top 10 mitigation).
- Data Privacy (GDPR/CCPA): If you handle EU or US consumer data, we ensure our development environments use masked or synthetic data, keeping real PII (Personally Identifiable Information) secure.
- Zero Trust Access: We utilize "Least Privilege" access principles. Developers are granted access only to the specific repositories and environments required for their tasks, often protected by Multi-Factor Authentication (MFA).
2026 Global Outsourcing Rates Guide
Forecasting costs for 2026 requires understanding the global economic shift. As inflation stabilizes but demand for specialized AI and Cloud talent rises, rates have adjusted. Below is the projected Total Cost of Ownership (TCO) landscape for hiring dedicated developers in 2026.
The Cost Calculation Formula
To budget accurately, use this formula:
Monthly Cost=(Hourly Rate×160 Hours)+Infrastructure/Tooling Costs
Global Hourly Rate Estimates (2026)
How to Hire A Dedicated Development Team
Hiring a dedicated software development team involves several stages, each crucial for ensuring you find the right team for your project. Here's a breakdown of the first and second stages of hiring a dedicated software development team:
First Stage: Preparation and Research
Define Project Requirements: Clearly outline your project requirements, including objectives, scope, timeline, budget, and technology stack. Understanding your needs will help you communicate effectively with potential development teams.
Research Potential Partners: Conduct thorough research to identify potential software development firms or freelancers. Look for companies with relevant experience, a strong portfolio, positive client reviews, and expertise in your technology stack.
Reach Out and Request Proposals: Contact the shortlisted candidates and request detailed proposals outlining their approach, methodology, team structure, timeline, cost estimates, and any other relevant information. Provide them with a clear brief to ensure accurate proposals.
Evaluate Proposals: Review and evaluate the proposals received from each candidate. Pay attention to their understanding of your project, proposed solutions, past work examples, and overall fit with your requirements.
Second Stage: Selection and Interviewing
Initial Screening: Conduct initial screenings to assess each candidate's suitability for your project. This may involve reviewing their portfolio, checking references, and evaluating their communication skills and responsiveness.
Technical Evaluation: Assess the technical proficiency of the development teams through coding tests, technical interviews, or reviewing sample code. Ensure they have the expertise required to handle your project's specific challenges.
Negotiation and Contracting: Once you've selected a preferred development team, negotiate terms, including pricing, payment schedule, project milestones, intellectual property rights, confidentiality agreements, and service-level agreements (SLAs). Ensure all terms are documented in a comprehensive contract.
Kickoff Meeting: Schedule a kickoff meeting with the selected development team to discuss project details, roles and responsibilities, communication protocols, and project management tools. Establish a clear line of communication and collaboration to ensure project success.
Common Hiring Models For Dedicated Development Teams
The dedicated development team model offers businesses flexibility and scalability when it comes to hiring a dedicated remote development teams. Here are different dedicated team services and models commonly used:
Full-Time Equivalent (FTE) Model
In this model, the client hires a dedicated team of full-time developers who work exclusively on their projects. The team operates as an extension of the client's in-house team, providing continuous support and expertise. The client typically pays a monthly fee for each full-time equivalent (FTE) developer.
Fixed Capacity Model
Under this model, the client hires a dedicated team with a fixed capacity, meaning a predetermined number of developers or team members. The client pays a fixed monthly fee based on the agreed-upon team size, regardless of the actual workload or project requirements.
Specialized Team Model
This model involves hiring a dedicated team with specialized expertise in specific technologies, domains, or industries. The team members possess advanced skills and knowledge relevant to the client's project requirements, ensuring high-quality delivery and optimal outcomes.
Benefits of Hiring A Dedicated Development Team
Looking to hire a dedicated development team? You'll tap into top global talent with no extra expenses. Check out the awesome perks you'll get!
- Access to specialized expertise
- Cost-effectiveness
- Flexibility in scaling team size
- Faster time-to-market
- Focus on core business activities
- Reduced overhead costs
- Improved productivity and efficiency
- Mitigated project risks
- Enhanced collaboration and communication
- High-quality deliverables
Don't hesitate any longer! Ontik Technology boasts a team of experts ready to bring your software dreams to life. Contact us today!
Engagement Model Options Available for Hiring Remote Development Teams
Wondering - what are the different dedicated team models that you can hire? When you hire development team members, here are some common engagement models available:
Hourly Rate Model
In this model, the client pays the remote development team based on the number of hours worked. It offers flexibility in terms of project scope and can be suitable for short-term or dynamic projects. However, it might lack predictability in terms of costs and timelines if the project scope changes frequently.
Fixed Price Model
Under this model, the client and the remote development team agree upon a fixed price for the entire project. It provides cost predictability and clear project deliverables. However, it may lead to scope creep and additional costs if the project requirements change.
Time and Material Model
This model combines elements of both hourly rate and fixed price models. The client pays for the actual time and resources spent on the project but with an agreed-upon rate. It offers flexibility in project scope and allows for changes during development. However, it requires active project management to control costs and ensure timely delivery.
Dedicated Team Model
In the dedicated development team model, the client hires a dedicated remote development team or developers who work exclusively on their project. The client has full control over the team, project management, and priorities. However, it requires ongoing management efforts and may not be cost-effective for small-scale projects.
Outcome-Based Model
This model focuses on delivering specific outcomes or results rather than the number of hours worked. The payment is based on achieving predefined milestones or goals. It aligns the interests of both parties towards project success. However, defining clear outcomes and milestones can be challenging, leading to potential disputes.
Dedicated Development Team Vs Fixed Price Model
If you are struggling to choose between a fixed-price model or hiring a dedicated development team, here is a quick comparison table for you:
Dedicated Team Vs Time & Material Model
When it comes to deciding between the Time & Material approach and hiring a dedicated software development team, it's important to weigh the options. Let's break it down with a comparison table:
When to Hire (and When NOT to) a Dedicated Team
Deciding between a dedicated team, freelancers, or in-house hiring is a strategic choice. This model is a powerful accelerator for many businesses, but it isn't a one-size-fits-all solution. Here is a framework to help you determine if a dedicated development team is the right move for your 2026 roadmap.
The Green Flags: When You Should Hire
If your scenario matches these criteria, a dedicated team is likely your highest-ROI option:
- Long-Term & Ongoing Projects: If your roadmap spans several months or years, you need continuity. A dedicated team retains knowledge, meaning you don't waste time retraining new freelancers for every sprint.
- Specialized Skill Requirements: When your project demands niche expertise,like GenAI integration, legacy migration, or specific frameworks,hiring locally can take months. A dedicated partner can deploy these specialized skills immediately.
- Rapid Scalability Needs: Does your workload fluctuate? A dedicated team allows you to scale up for a launch and scale down during maintenance without the legal headaches and morale costs of hiring and firing internal staff.
- Focus on Core Competencies: If software development isn't your primary business (or if you need to focus internal resources on R&D), outsourcing execution to a dedicated engineering unit frees your leadership to focus on innovation and customer growth.
- Speed to Market: Dedicated teams are pre-vetted and experienced in Agile methodologies. They can adapt to changing requirements instantly, accelerating your deployment timeline.
The Red Flags: When You Should NOT Hire
There are specific scenarios where this model might be excessive or risky:
- Short-Term / Tiny Projects: If you have a clearly defined task that will take less than 4-6 weeks (e.g., a simple landing page or a minor bug fix), the setup time for a dedicated team isn't worth it. In this case, hiring a freelancer or using a Fixed Price model is more cost-effective.
- Tight Budget Constraints: If you are bootstrapping with extremely limited runway, the recurring monthly cost of a full team might be too high.
- Unvalidated MVPs: If you are testing a raw idea and aren't sure if it will survive the next month, committing to a full team is risky.
- Pro Tip: For startups, we offer a specialized MVP Partnership designed to launch your product efficiently without the full enterprise overhead.
- Highly Sensitive IP Restrictions: While modern partners use robust security (NDAs, VPNs), if you work in highly classified sectors (like Defense or National Intelligence) that legally require data to remain on-premise, offshoring may not be compliant.
Ultimately, hire a dedicated team when you need capability, continuity, and speed. Avoid it when you simply need a quick task completed.
Still unsure which model fits your roadmap? We offer flexible options tailored to both long-term scaling and short-term execution. Contact our team for a friendly consultation, and let’s map out the best path for your project. Click to explore all the possibilities./
When Should You Not Hire A Dedicated Development Team?
Deciding not to hire a dedicated development team may be appropriate in certain situations. Here are some scenarios where you shouldn’t hire a dedicated development team.
Short-term projects:
For projects with finite timelines and clear deliverables that don't necessitate ongoing support, hiring a dedicated team may be excessive. In such cases, it might be more cost-effective to engage freelancers or contract workers.
Limited budget constraints:
If your budget is tight and you're unable to commit to the long-term expenses associated with a dedicated team, it may be more sensible to explore alternative arrangements, such as outsourcing specific tasks or relying on in-house resources.
Uncertain project requirements:
When project requirements are still evolving or subject to frequent changes, investing in a dedicated team may pose risks. Flexibility becomes crucial in such dynamic environments, making it more suitable to work with contractors or adapt existing resources.
Sensitive data or intellectual property concerns:
If your project involves handling sensitive data or proprietary information, entrusting it to a dedicated team, especially one located offshore, may raise security and confidentiality concerns. In such cases, keeping the work in-house or working with trusted partners may be the ideal option.
MVP Development
When launching an MVP, the goal is to test the waters with minimal investment. Choosing a dedicated development team might not be financially viable, particularly for startups or those with limited budgets. But worry not! You can opt-in for our MVP Partnership to launch your product the best way.
We offer a range of options to help you complete your project efficiently by collaborating with remote developers. Whether your project is short-term or long-term, we've got you covered. Click to explore all the possibilities.
How To Determine The Cost Of Hiring A Dedicated Development Team
To hire a dedicated software development team, the first step is to define your project requirements. Then, you set your budget and location preferences. After that, source potential vendors through directories, professional networks, and referrals. Screen and interview candidates to assess their skills and cultural fit. Lastly, finalize a contract and formally onboard the team.
Here's the easiest step-by-step guide to help you calculate the expenses (of hiring a dedicated team for software development:
- Identify Required Skill Sets:
Determine the specific skill sets needed for your project such as programming languages, frameworks, and expertise in certain domains.
- Estimate Project Duration:
Break down your project into phases or milestones and estimate the duration required for each phase.
- Calculate Man-Hours:
Estimate the number of man-hours required for each phase of the project based on the complexity of tasks and the expertise needed.
- Determine Hourly Rates:
Research the average hourly rates for developers with the required skill sets in the location where you plan to hire your team. Rates may vary depending on factors like experience level and geographic location.
- Factor in Additional Costs:
Consider additional costs such as overhead expenses, project management fees, software licenses, and infrastructure costs.
- Formula for Cost Calculation:
Total Cost = (Total Man-Hours * Hourly Rate) + Additional Costs
Here:
- Total Man-Hours = Sum of man-hours estimated for each phase
- Hourly Rate = Average hourly rate for developers
- Additional Costs = Sum of all additional costs associated with the project
- Negotiate and Finalize:
Negotiate the terms and costs with the selected team or company and finalize the contract.
By following this strategy and using the provided formula, you can accurately determine the cost of hiring a dedicated development team for your project. Keep in mind that while cost is important, it's also essential to consider factors like the team's expertise, experience, and reliability to ensure successful project delivery.
Have a Look at the Global Software Outsourcing Rates for 2026
In 2025, the cost of outsourcing software development can differ a lot depending on where you look, how skilled the developers are, and how complicated your project is. Here's a quick overview of typical rates across different countries:
When deciding where to outsource, it all comes down to your budget, what your project needs, and how much things like fitting in with the culture or being in the same time zone matter to you. Clients need to think about these things carefully when picking an outsourcing partner. That way, you can make sure the collaboration goes smoothly and doesn't end up costing more than expected.
Performance Metrics & KPIs for dedicated software development team
The efficiency and effectiveness of a dedicated software development team, can be measured by tracking a balanced set of Key Performance Indicators (KPIs) and metrics. These reflect various aspects of their work:
1. Velocity and throughput
Velocity: Your scale calculates the amount of work a team can complete within a specific time period (e.g., a sprint or iteration), according to Appfire. Helps in forecasting and planning future work.
Throughput: Represents the number of tasks, user stories, features, or bug fixes. And these need to be completed over a specified period. Here you will find a more detailed view of the team's output compared to its velocity.
2. Cycle and lead time
Cycle Time: A metric of the duration a task takes from the moment work begins until its completion. Helps to identify bottlenecks and streamline workflows.
Lead Time: This refers to the total time elapsed from the inception of a project or feature request to its delivery in production. Planning and preparation phases also fall under this system, which you will not understand in the cycle time system.
3. Code quality and testing
Code Coverage: Here, you will find the percentage of the source code executed by automated tests. Higher coverage indicates a more thoroughly tested codebase. This also means a reduced risk of bugs.
Defect Detection Rate (DDR): Measures the effectiveness of testing efforts. And to do that, they track the percentage of defects caught before software's release versus those found after.
Code Churn: It is about the percentage of code that undergoes frequent changes (rewrites, updates, deletions) within a time period. Here, changes are expected. Although excessive churn may indicate areas needing improvement in design or understanding.
4. Stability and reliability
Deployment Frequency: Makes you understand how often a team successfully releases code changes to production. Frequent deployments would suggest agile development and continuous delivery.
Mean Time to Recovery (MTTR): Highlights the average time it takes to restore a system after an incident or outage. If the MTTR is shorter, then incident management and problem resolution are shorter and quicker.
Change Failure Rate (CFR): Shows you the percentage of deployments or changes that result in failures or defects in production. Lower CFR emphasizes strong testing and deployment strategies.
Uptime/Availability: The percentage of time a system or service is operational and accessible. This is a crucial indicator of system reliability.
5. Team dynamics and satisfaction
Developer Satisfaction Surveys: Systematic, regular surveys gauge various factors. Like developer happiness, engagement, and satisfaction with their work, tools, and overall environment.
Employee Retention Rate: Track how long developers stay with the team. Provides insights into factors affecting job satisfaction and workplace culture.
Onboarding Efficiency: It reveals the time taken for a new team member to become productive. Reflects the effectiveness of the onboarding process, notes AnalyticsVerse.
Collaboration Metrics: Measures like pull request frequency, review times, and merge times. Reflect on how efficiently the team collaborates on code development and review.
6. Business impact
Customer Satisfaction Score (CSAT) and Net Promoter Score (NPS): Gather feedback from customers about their satisfaction with the product. Also, find out if they would recommend it. A better way to know how well the software aligns with user needs and expectations.
Feature Adoption Rate: The percentage of users adopting new features or product enhancements. Shows the value delivered by the development team.
Important considerations
Measure outcomes, not just output: Focus beyond the quantity of code or tasks completed. Understand the value you are receiving.
Measure teams, not individuals: Software is a collaborative effort. So team-level metrics provide a more accurate picture of performance.
Balance metrics: Avoid over-optimizing around a single metric. It may distort behavior.
Context matters: Choose metrics wisely. Align them with your team's specific goals, workflow, and project context.
Continuous improvement: Use metrics to identify areas for improvement. Then drive iterative changes to your processes.
Adopt a thoughtful and comprehensive approach to track these performance metrics and KPIs. So that dedicated software development teams can gain valuable insights into their strengths and weaknesses. Thus, optimizing their processes and delivering high-quality software more efficiently.
Hire a Dedicated Software Development Team With Ontik Technology
Say goodbye to recruitment headaches! With Ontik Technology, you'll have access to a handpicked team of seasoned professionals meticulously selected to match your project's requirements. From developers to designers, we've got you covered. Forget about overhead costs associated with in-house teams. With Ontik's Dedicated Development Team, you get the expertise you need at a fraction of the price, maximizing your ROI and boosting your company’s success.
Interested in discussing the opportunities with Ontik Technology's Dedicated Development Team? Let’s have a meeting today!
Conclusion
In a nutshell, a dedicated software development team is your personalized squad of experts who are committed to bringing your software projects to life. Instead of juggling freelancers or relying solely on in-house talent, you enlist this specialized team to tackle your project head-on. Whether you’re a tech giant or a startup, leveraging the expertise of a dedicated team can streamline your project, enhance efficiency, and drive success. So, ready to hire your own dedicated software development team? Reach out to Ontik Technology's expert team right away.