Engagement
Models
Prudent and realistic pricing models for delivering complete value for money.
We ensure our commercial models are successful for any particular engagement by striking the right balance between
your expectations of quality, timeliness and price, and our cost and operational efficiency.
Pricing Models That Works Best For You
A robust and powerful engagement model is the foundation for an effective offshore experience.
Our engagement model is highly centered toward fulfilling customer’s innate needs.
Fixed Price
- Project Size
Small & Medium - Requirements
Defined - Project Budget & Timeframe
Fixed - Control over the Process
Little - Flexibility
Little - Delivery Model
Waterfall
Dedicated Team
- Project Size
Large - Requirements
Evolving - Project Budget & Timeframe
Flexible - Control over the Process
Full - Flexibility
High - Delivery Model
Agile
Time & Material
- Project Size
Medium & Large - Requirements
Evolving - Project Budget & Timeframe
Flexible - Control over the Process
Significant - Flexibility
High - Delivery Model
Agile
Fixed Price Model
This IT outsourcing pricing model works best when used for projects with a predefined scope of tasks, rigid requirements and predictable time frames. This model requires the customer to provide a detailed list of project requirements and all required developer documentation, so the contractors can design a Scope of Work and work according to a strict roadmap with unchangeable deadlines.
Pros:
- Clarity
All project requirements are specified beforehand, as well as all the required developer documentation. - Precision
The project scope and time frames are known in advance, so the team can set the deadlines and monitor the project progress with ease. - Accountability
A reliable contractor will accomplish the project on time and under budget, even if it means some extra hours for the team.
Cons:
- Risk
Risks are higher for the outsourcing team, as the project scope is rigid and cannot be altered. Any force-majeure situation affecting the scope or the price of the project leads to the need of complete project reevaluation. - Diligence
Fixed price projects require diligent planning, either from the customer or from the contractor. If the contractor does the estimates, this might take up to 40% of the budget and time invested in the project as a whole. - Meticulousness
A dedicated Project Manager is needed either on the customer’s or on the contractor’s side to ensure all the tasks are done according to deadlines. Otherwise, there is a high risk of the team dropping certain features to meet the deadlines.
Dedicated Team
This approach combines the features of both previous models but is slightly better than both of them. It is used to compensate for the lack of in-house IT expertise on mid-to-long-term projects. The contractor builds the team according to the customer’s requirements, and this team can report directly to the customer, or be supervised by a dedicated Project Manager.
Pros:
- Predictability
The bills are formed on a predictable and transparent basis and the customer always pays only for the results delivered. - Adjustability
The team size, project scope or requirements — anything can be adjusted if need be. - Continuity
The team works on your project for a long time, so it has a full understanding of all project features and is dedicated to running the project smoothly.
Cons:
- Graduality
If the team cannot be composed of the available contractor’s staff, finding additional talents can take some time (2-4 weeks on average, based on the skills required). Thus said, the core of the team can start working at once, while the rest of the members will be added gradually. - Thoroughness
Unless a customer prefers to pay for the personal Project Manager, who will take care of the routine team management tasks, working with a dedicated model requires a thorough control of all tasks to ensure the project moves in the desired direction. - Indistinctness
When there are no clear project requirements, the final result can differ much from the picture the customer expected. However, in the case of working with experienced teams, this situation is largely due to the fact they remove all bottlenecks and vulnerabilities the customer did not even think about.
Time & Material
This is a more flexible approach to IT outsourcing, as the customer pays in smaller chunks for work accomplished during the billable hours. To say more, this pay-as-you-go model allows to pay only for the work actually done (features delivered, milestones met), and not for the time the team spent drinking coffee, smoking or surfing Facebook. Thus said, the time-and-materials model is more suited to longer-term projects, where the final requirements are not known in advance and can be changed on the go.
Pros:
- Flexibility
The customer can change the project scope, requirements or team size on the go to meet his business goals. - Transparency
The customer has in-depth control over the budget and pays only for the results actually delivered. - Efficiency
This is the best model for Agile/Scrum software delivery process, where short sprints result in delivering tangible results.
Cons:
- Vagueness
Both the project budget and time frames remain undefined, so it’s hard to predict when the product will be delivered or how much it will cost. - Supervision
A detailed supervision is required to ensure the team estimates the tasks correctly and accomplishes the milestones in full. - Communication
Time-consuming communication is required to clarify any updated project requirements or collect feedback on the features delivered. However, this is more of a benefit, as it ensures the final project meets your expectations.
Let Us Help To Select Model That Suits You
Below are some of the factors you need to consider before you start contemplating the individual engagement models. Still confused? Write us an email with answers to below questions and we will help you select the best engagement model for you.
Type of project. Is your project a simple MVP or a complex and multi-faceted solution?
Budget predictability. How important is it to you to know in advance how much you are going to pay?
Scope flexibility. How much detail do you know about how the final product needs to look and work? Do you want to still be able to change or add requirements after the start of the project?
Time-to-market. How important is it to you that your product reaches its end users as quickly as possible?
Set timelines. Are there immovable deadlines for the completion of the project?
Management. How competent do you feel about managing the development of the project?
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