One of the toughest decisions while starting a business relationship is choosing the right engagement model.
The fixed price (also known as project based) model is perfect for small and medium scope projects, where requirements, specifications and schedules can be clearly defined before the start of the project development. If client cares more about the result and not the means in would be achieved with, this model is more than appropriate. After the client’s request, service provider analyzes project scope and complexity, provides project delivery schedule and fixed budget for the complete product development for client’s approval.
Among the advantages of such fixed time and fixed price solution are:
- suited for small and medium sized projects;
- clear requirements and well-defined objectives and milestones;
- low risk for clients, since risk of successful completion is transferred mostly to service provider;
- relatively little client’s supervision is required;
- fixed price based on the project estimate before project delivery commencement;
- assurances that project will be completed within agreed budget and timeframe;
- service provider is highly motivated to be efficient and productive.
The Time & Material model facilitates agile development process. It is simple to understand and provides the following advantages:
- flexible and negotiable budget and low risk for both parties
- opportunity to pay in parts and only for the performed work
- perfect for large and long-term projects that can’t predict the end product on the initial stages
- development process starts earlier, since there is no need in formulating the final requirements
- client has control over the project, approves or adds any task that will be implemented on demand specifications and enhancements can be negotiated during any project stage.
This model suits the needs of the clients who want total control of their project and resources. The client is provided with a specialized team that takes care of every aspect of the project at hand.
Choose this model if;
- You want total take control of development processes
- Do not want to get into fuss of attrition, hiring employees,
hardware deployment and perks
- Want to save office space, rent, hardware cost and office expenses
The team is made as per client's requirements and needed skill sets.
Required knowhow and expertise can vary depending on the project in
question. Hence, it would make sense to go through the skills of dedicated
programmers and designers for better decision making.