Table of Contents
Updated August 2021
One size does not fit all. Similarly, one billing & engagement model won’t work for every business. You want to choose the right one that suits your unique business needs. Here are the three engagement models that are typically offered by seasoned software service providers (software company):
FIXED PRICE MODEL
This pricing model works for projects where the project scope is limited and clearly defined.
Here’s how this development process works:
● You provide a statement of requirements to the software company.
● They refine the requirements and fill in on any missing gaps by having meetings/discussions with potential stakeholders on your side.
● They then present you with a more comprehensive requirement document for approval.
● Once you approve, they present you with a fixed cost quotation and a project timeline.
● Development efforts get kicked off once the business requirements, cost and timelines are mutually agreed upon.
Typically, Waterfall SDLC approach is followed with this model. However, in this approach, you have limited flexibility to make changes mid-way, and you are better off if you are able to communicate all your business requirements clearly at the outset. But on the brighter side, there is transparency during the project, the software company sticks to the set budget and the cost escalation risk factor is low.
Also, regular updates are provided to you by the project management team to maintain complete transparency during the tenure of the project.
TIME AND MATERIALS MODEL
When you have a project with constantly changing requirements that you are unable to clearly define the scope of work ahead of time, T&M billing model works better. You can work with your software development firm to set a monthly retainer based on your resource bandwidth needs. This way, the software team can optimize the utilization of resources and also respond promptly to product development, enhancement, and support while troubleshooting requests from you. The resource bandwidth allocation can be reviewed and adjusted periodically (say, once in 6 months) to ensure that it continues to meet your business needs.
With this model, you pay an hourly rate, which is proportional to the skill level of the resources deployed on the project. This model usually works best for projects that are either in the discovery phase, or in the maintenance & support phase, that comes immediately after project launch.
DEDICATED TEAM MODEL
Basically, in this engagement model, the software company that provides you the service works as an extension of your in house technology team members. They put together a tailored resource team consisting of developers, testers and project managers. This skilled team of engineers and project managers are dedicated exclusively to your company projects for a specified period (usually, 6 months to 1 year). All of this is done based on your project requirements.
Some of the key benefits of this approach is that the budgets stay stable and in case of production issues, resources are available round-the-clock to fix the problem and provide support. In this model, the outsourced dedicated team and in-house developers work in tandem using well-structured communication protocols and processes, led by project managers on both sides.
You can read more about the benefits of a dedicated software development team in this post here.
Choosing the right engagement model software development is as important as choosing the right software development team for your project.
Does your business need help for your software development project?
If you are looking for custom software development we can help. Our web-based solutions are guaranteed to improve the competitiveness, efficiency and profitability of your business. Asahi Technologies is prepared to meet all of your enterprise software development needs with the utmost confidence that we can deliver a product that lives up to your standards.
Here are some of the questions asked to us by our Manufacturing Industry and Financial Services Application Development Clients:
Q: I have a fairly decent idea of what I want to build. But, I do not have detailed specifications for my project. Is this alright?
A: Don’t worry if you don’t know all of the technical stuff. We’re happy to discuss your ideas and advise you. We have a highly experienced business team that can comfortably translate business functions and requirements into software project specifications, user stories and wireframes. Most clients that come to us don’t have specifications, we develop these for them. We have satisfied global clients from many different industries – all who were at very different stages of planning. To read some reviews of our Custom Software Development Company & Web Application Development Services check out our testimonials page.
Q: Why should I hire Asahi Technologies for my custom enterprise software development project?
A: At Asahi Technologies, we value the partnerships we create. Our clients represent more than just a project. As your technology partners we’re dedicated to helping you achieve your unique business needs by leveraging complex technologies and providing you the support and maintenance you require after a project is launched. We value creating purposeful and innovative projects that help your business grow, become more profitable and more efficient.
With head office in New York, we have experience working with the most demanding clients, for instance, in the financial industry. We have a strong business strategy team, which listens to client challenges carefully before crafting the most suitable technology solution and our technology team is passionate about building quality software solutions for clients. We blend the best and the brightest creative thinkers and engineers who are dedicated to excellence and revolutionizing your business with unique web solutions.
Q: Who will be my point of contact at Asahi Technologies?
A: The project manager assigned to your project will usually be your primary point of contact throughout the course of the engagement with Asahi Technologies.
Let Asahi Technologies help you develop your next custom application development project for your business.
Want to read some of the testimonials of our New York software development services?
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