Fixed Price or Time & Material or

Dedicated Team: What To Choose

Let’s say you decided to develop software without having your own team of developers for the project and for some reason you don’t want to hire additional people in your company. It’s clear that you cannot move forward without a help of contractor. But what type of cooperation model you need to choose: Fixed Price or Time & Material or Dedicated Team Model.

When you are using Fixed Price model (as a customer), it is easily to say why it suits you. After all when you come to the restaurant you want to know the price in advance to make sure what to order and what will be the final price. Thus the exact price is the key to any purchase deal of other simple services.

FIXED PRICE MODEL

When it’s a short-term project.

When you have a full project description with clear goals, working procedures and results.

When you are working with new contractor (pilot project with fixed price can be a good test for contractor to become a permanent partner)

WHEN TO USE FIXED PRICE MODEL - SOME EXAMPLES:

This model is suitable for projects where Fixed Price can’t be given and for clients who are willing to invest in a gradual and continuous development of quality product as they understand that creation of a new product is an iterative process where the development has a large number of rounds.

TIME & MATERIAL / DEDICATED TEAM MODEL

The advantage for customer of Time & Material or Dedicated team model that it’s almost the same like managing local staff but distantly:

If it’s a small project and you work using Time and Material model, then you receive software development experts available for you some hours in a month. Development can be planned for several months.

The advantage for customer of Time & Material or Dedicated team model that it’s almost the same like managing local staff but distantly:

If it’s a long project and you need full time or part time experts for 12+ months then the most effective solution is dedicated team model as you receive selected by you experts at the lowest available price.

During long-term projects when the current plan means the attraction of additional long-term full time resources and the use of new technologies.

When the original needs and goals are unclear, and you cannot predict the final result (i.e. in case of start-up).

When you know in advance that requirements or task priorities will be changed (changing the course won’t become too hard, since you're running a dedicated team).

WHEN TO USE TIME & MATERIAL OR DEDICATED TEAM MODELS:

Any the software development model is always a balance of money, quality and timeline. Often the customer‘s goal is to save money. In this case, some teams can offer only a low-grade product or delays in delivery.

Anyway customer is a king and he should choose the model that suits him better.

It will be really great if the customer considers creating a positive and friendly atmosphere for contractor/developers working on his projects and try to temper disadvantages of chosen models and work out solutions if problems arise. Anyway no one wants to shoot themselves in the foot and release a product with a bad quality or create a product, which will be expensive to support in future. So, talk with your contractor, discuss the details and make rational decisions!

We have 22 Angular Js Developers in our company who have created many web applications and received dozens of reviews by our clients from all over the world.

For More details you can visit our blog at:

https://belitsoft.com/company/blog/tips-and-tricks-for-outsourcing/fixed-price-time-material-dedicated-team.html

Location : MinskBelarus (220037)

Phone Number: (323) 419-00-39