Dedicated Team vs Fixed price vs Time and Material: Which Engagement Model to Choose?
Latitude Technolabs Pvt. Ltd.
Mobile App and Web Development Company in India built IoT Mobile Apps, Android Apps, iOS Apps, Xamarin Apps, Angular js
Often professionals get confused in finalizing the best engagement model for their project. It is of utmost critical to go with the best one. Some of you might not give much priority to it but, I would suggest not ignoring the same.
Are you about to justify the engagement model for your upcoming project? Then this place is for you as I’m going to guide you on which engaging model are the right fit for you.
However, first, we know what the engagement model is?
Engagement model – A Brief Introduction
The client engagement model is like a structured design or a plan. It decides the basis of the client and software development company collaboration.
There are numerous kinds of engagement models. It mainly aims at wants, needs and customer interest by ensuring flexibility and controlling level.
Fixed price model, time & material model and dedicated team are the three most desired engagement models.
Fixed Price Model:
There is a fixed-price contract in which the development team has to deliver the project within the predefined sum. Both parties agree on it. It is a cost-effective model for clients because they don’t have to pay anything out of the agreed price.
Working of fixed price model:
This kind of model is quite beneficial for the client. They don’t have to pay any additional charge. However, the process is difficult for the team.
The profit margin decreases when the client decides to make any changes in the project of the development stage. When there is a change in the scope, the situation becomes much more difficult.
When to choose a fixed price model?
Advantage:
Disadvantage:
Time and Material:
The cost in such a model is proportional to the number of resources and time need by the company. Here the client will only pay for the total time required for the development of the task. It is crucial to provide the scope of the project delivered to you.
领英推荐
When to use time and material?
Advantage:
?Disadvantage:
Dedicated Team?
In this engagement model, you can retail the project management control. It is because this model eliminates the drawback of both systems.The service provider will take care of the recruitment, infrastructure and administrative support for the team. The dedicated team is responsible to monitor the performance.
Due to its flexibility and scalability, it is best suited for the offshore software development company.
?When to choose a dedicated team model?
?Advantage:
Disadvantage:
Which won the race?
In my opinion, the dedicated team model is the best engagement model. The reasons behind my words are as follows.
Our Final Words:
Here I end my words and hope you get a clear roadmap for choosing the right model. The correct model is crucial for the client and for the company as well. If you have a short-term project, then I would recommend a fixed price model. If the cost doesn’t matter and there could be a change in the scope, then Time & material model is your cup of tea.
However, the dedicated model is one of my favourite models for those who have long term projects. I always recommend it to my clients when they avail of app development services.
Now I want to know your opinion. Which one is your favourite model???