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Dermody was Southland's Assistant Coach, to Brad Mooar, in 2014. In 2018 he joined Tasman as co-Head Coach with Andrew Goodman at Tasman when the Mako's won the NPC Premiership titles in 2019 and 2020.

Dermody was interim coach of the Highlanders in Super Rugby in 2021 while Tony Brown was on international duty with Japan. After Brown's tenure, Dermody was announced as the Highlander's Head Coach from 2023.[3]