At Enginerasoft, we thrive on the peculiarities and needs of software development projects. Therefore, we offer customers the following cooperation models: Fixed Price (FP), Time & Material (T&M), and Dedicated Team. In this article, we will discuss each.
This model is suitable for primarily small (e.g. pilot projects) and medium-sized projects. Fixed Price includes clear requirements that do not usually change throughout the development process, deadlines, or within a fixed budget. The contractor, using the information from the customer, prepares a schedule according to which the main project stages will be carried out along with a monetary estimate based on the project complexity and volume of work required.
The advantages of the Fixed Price model:
- You can plan the entire budget of the project in advance.
- You have a clear plan with all stages and substages of your product development.
- Detailed instructions and clear requirements allow you to get what you really need.
- Ready-made solutions are delivered on specific dates.
Time & Material
This model is best for long-term projects in which the scope of work is unknown and there are no clear requirements. The client has more control over the entire project, as T&M provides more flexibility for injecting changes at any stage of product development. Pricing is based on hourly rates for the labor of a particular developer.
The advantages of the Time & Material model:
- Suitable for projects where the scope of work is not defined
- Greater flexibility in the development process
- Scalable project team
- The ability to continuously monitor work progress and see results at all stages.
Dedicated Team is a team consisting of specialists whose technical levels correspond to customer requirements. This model of cooperation is suitable for large companies that need to quickly expand their staff or for start-ups that want to cut costs associated with hiring new staff. The client can exercise full control over the team while the contractor carries out all the administrative activities. The monthly cost for Dedicated Team is a flat rate which includes the salaries of the team specialists and administrative expenses.
The advantages of Dedicated Team:
- Possibility for the customer to control the team and establish own rules for reporting, quality review, and work plan
- Individual support of specialists for the needs of a specific project
- Reduced costs and time for hiring additional staff.