A dedicated team of professionals is reserved for a client usually on a long term basis. The team virtually becomes the extended development team to the client. The model may or may not have onsite resources. The client is ensured of a fixed team that gathers much knowledge on the business processes to deliver efficient and effective deliveries.
Any project essentially goes through a cycle of Define, Design, Develop, and finally to Delivery and Management.
As against classic waterfall model, a constant and highly value added iterative process between scope, solve and sketch (design) ensures proper scoping & functionalities, organization readiness, technical complexity and establishing time lines etc. Detailed Design also ensures proper interfaces with other legacy systems and adapting this system to the user needs.