Engagement Model

Every software development project is unique and requires different strategy. In order for your customers to have the best possible software development experience and quality product, proposing a good engagement model is very crucial. As a leading IT outsourcing software development company, we considered many factors while proposing an engagement model.

Time and Material

A preferable model due to the flexibility it offers. It is used when the scope of the project or the requirements are evolving or constantly changing. It’s a cost-effective model wherein there is an upfront rate agreement on the resources allocated to the project, typically on hourly, daily or weekly. This way, client’s expense on the project corresponds to the amount of work delivered. In this model, work delivery is usually of high quality and on-time and not many surprises on the cost due to agile methodology.

Choose Time and Material model when:

  • Project is medium to large
  • Requirements are constantly evolving
  • For large projects with several planned iterations
  • Transparency during the development process

Dedicated Team

A common model these days when vendor team acts as an extension to the client’s team (in case they have one). This team could be at the customer’s premise or remote depending on the type of the agreement or project requirements. Vendor’s team has to follow the policies, tools and methodology as dictated by their client’s organization. Cost is per allocated resource on the project and it’s varied considering the knowledge and experience of that particular resource.

Consider Dedicated Team model when:

  • Project size usually doesn’t matter, however most of the time used for medium to large
  • There is lack of resources on the client’s side
  • Client do not want to add operational overhead on their payroll
  • Client should have good ramp-down strategy since there will be dependency on these external resources

Fixed Price

A model required extremely well-planned approach of the entire project from start to finish. Every possible risk and it’s mitigations have to be thought through well before a project can begin. Scope, requirements, delivery timelines and of course cost are all fixed. Success of this project is directly dependent on the initial planning. Team using this model has to be exceptional and be ready to handle any unexpected surprises if they missed during initial discovery phase. Understanding requirements and asking clients questions on their expectation of the final project is very critical.

Choose Fixed Price Model when:

  • Scope of the project is well-defined, unlikely to change and clear
  • Project length is small to medium and will be delivered within few months
  • Client has prior experience on fixed price projects

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