Hiring & Scaling

How Pricing Works for Dedicated Development Teams

What you’re really paying for when you hire a dedicated team

January 3, 20268 min readBy Chirag Sanghvi

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Dedicated development teams are often marketed with simple monthly numbers, but pricing is rarely that straightforward. Many founders focus only on cost per developer and miss the factors that actually impact outcomes and long-term spend. Understanding how pricing works helps you avoid under-scoping, hidden costs, and misaligned expectations. This guide explains how dedicated development team pricing is structured and how to evaluate real value.

What is a dedicated development team model?

A dedicated development team is a long-term engagement where developers work exclusively on your product.

Unlike project-based models, the team becomes deeply familiar with your product, roadmap, and business context.

Common pricing models for dedicated teams

Dedicated teams are usually priced on a monthly basis rather than hourly billing.

This model emphasizes continuity and predictable cost instead of short-term task delivery.

Per-developer monthly pricing
Role-based team pricing
Blended team rate
Hybrid leadership + execution model

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Key factors that affect dedicated team pricing

Pricing varies significantly based on the responsibilities and seniority involved.

Focusing only on headcount ignores the real cost drivers.

Developer seniority and skill mix
Inclusion of technical leadership
Level of ownership and accountability
Product complexity and domain knowledge
Communication and time zone overlap

Typical cost ranges for dedicated development teams

Costs differ by region and responsibility level.

India-based dedicated teams are popular due to cost efficiency combined with strong technical talent.

Junior-heavy team: ₹1.2L–₹2.5L per developer per month
Mid-senior balanced team: ₹2.5L–₹4.5L per developer per month
Senior-led team with ownership: ₹5L+ per developer per month

Hidden costs founders often overlook

Low advertised pricing often excludes critical responsibilities.

These gaps show up later as delays, rework, or dependency.

Lack of documentation and knowledge transfer
No architectural or quality ownership
High developer turnover
Extra management overhead on the founder

Why pricing should be evaluated against value

The cheapest team rarely delivers the lowest total cost.

Teams that provide ownership, continuity, and leadership reduce long-term spend.

Dedicated teams vs team augmentation pricing

Dedicated teams focus on long-term alignment and stability.

Team augmentation may appear cheaper short-term but often requires stronger in-house leadership.

How founders should budget for a dedicated team

Budgeting should account for risk reduction, not just output.

If the team is critical to your core product, underinvesting increases long-term cost.

Questions to ask before agreeing on pricing

Understanding what is included prevents misalignment later.

Clear answers here indicate a mature and reliable partner.

Who owns architecture and technical decisions?
What happens if team members change?
How is knowledge documented and transferred?
How is scope and priority managed monthly?

The real takeaway on dedicated team pricing

Dedicated development team pricing reflects responsibility, not just headcount.

Founders who evaluate pricing through a long-term lens achieve better outcomes at lower total cost.