Pricing and capacity.
How the fixed monthly fee for a dedicated team is calculated, what committed capacity means, and why the invoice stays the same when leave falls.
How capacity is priced without hourly billing.
Hourly billing makes a simple promise and creates a complicated relationship. Every absence becomes a credit note, every quiet fortnight becomes a conversation, and somebody on your side ends up auditing timesheets instead of reviewing work.
The alternative is to agree a monthly capacity up front. Working hours are calculated across a full year, annual leave and public holidays are deducted, and the remainder is divided by twelve. For a full-time specialist that comes to around 160 hours a month. That average becomes the committed monthly capacity written into the agreement, and the fee does not move because April has Songkran and May does not.
The fee also has to cover more than hours. With a managed offshore team it includes delivery management and reporting, training and development, and the operational side: employment, equipment, office and security. Compare that total with the salary of a local hire plus the management time it takes, and the monthly figure reads differently.
Seniority is the other input. Each level has its own rate, and the mix of levels in your remote team is what moves the monthly fee up or down. You agree that mix before the team starts, and you can change it at the monthly cycle as the roadmap changes. Companies that hire dedicated developers this way see one figure on one invoice.
For a whole team, the arithmetic is the same and the composition question is new. The dedicated development team page shows how one is put together, from a single specialist to every discipline under one agreement.
When you compare quotes, put three numbers side by side: the monthly fee, the management time the arrangement leaves with your own team, and the average tenure of the provider's engineers. Our own estimate for management time under staffing is four to eight hours a week per specialist. Our specialists stay with Azendo for 3.3 years on average. A low rate with high turnover and no management included is rarely the cheaper option over a year.
Every Azendo price is a starting price per role, per month, for a mid-level specialist working full time and fully managed. Junior and senior levels are priced in the proposal, and the proposal also names the people, the monthly capacity and a start date, usually four to six weeks after signing.
