Software Development has formed the economic and social face of the planet within the most recent 3 decades. What was once thought of gibber and kept to the elite minds that place humans on the Moon and cracked the German Enigma is currently a well-liked profession that has created landmarks just like the Silicon Valley and icons like Bill Gates and Steve Jobs. With the spurt in revolutionary product ideas within the late 90s, the need to place those ‘thoughts’ into execution demanded the best development-skills, and this ‘request’ has been solely developing with time. This conveys us to an aspect of software development that has perpetually been a significant business call for companies – the foremost cost-effective engagement model.

Here is what we think regarding selecting the right engagement model:

Fixed Price Model

Fixing the price is about fixing the project requirements, scope, as well as deadlines. This model can never work while not thorough initial planning, analysis, and estimation sessions. The more planning you do, the better the result. Why is the planning stage so important? The success of the fixed price project is directly proportional to the success of this primary phase.

To have a superior control over a greater project, the engagement model may be somewhat changed with deliverables & milestones approach. A customer is charged because the in agreement milestones have come and deliverables are in situ. From that point forward, another stage with its own particular milestones and deliverables can start. For the majority of effectively fixed price projects, discovery phase fills in as the beginning point.

Choose Fixed Price Engagement Model when:

  • Requirements are clear, very much characterized and improbable to change
  • You deal with a small or medium project which won’t last for more than few months

The Pros:

  • It’s well-defined and well-negotiated. There’s no room for lapses.
  • There is a push to get the total picture of the software even before the development begins.

The Cons:

  • There is no room for flexibility. Your eureka moment of a new feature should wait to materialize.
  • Any gaps in communication would mean that the delivered product could be unsatisfactory.

Time and Material Model

A cost-effective model where the measure of money you spend relates to the amount of work conveyed. The client and therefore the vendor typically agree upon an hourly, weekly or daily rate for the allocated project resources. Given that Time & Material project is joined by the experienced and talented project managers, quality is appropriately managed. There are great chances of completing the work in-time and within the budget plan.

Picking Time and Material model typically limits the most important risks of the outsourced projects: software you’ve been conveyed fails to fulfill any of your wants since you need control over the scope and therefore the budget spending.

Choose the Time & Material Engagement Model when:

  • You have constantly evolved or unclear requirements
  • Your developments needs will deviate over the time

The Pros:

  • Super-Flexible
  • There is a distinct possibility for networking, as well as on social lines.

The Cons:

  • You pay until you get what you want.
  • In uncommon instances, in exploitative companies, there could be a considerable delay being developed.

Dedicated Team

A dedicated team is maintained on the client facet, and the specialists your firm is supplemented with should completely agree to the current corporate rules, culture, and the accepted procedures of your company. Also, this new team assumes control over your company’s tools, technical resources, and methodologies, and ought to be relied upon to perceive themselves as a critical part of the organization.

This model may have productive varieties when it is infused’ with the Time and Material (T&M) elements. Suppose you are certain that you will require a software engineer of an exact qualification category someplace down the project progress line, yet you don’t know when precisely and for what period. In such a circumstance, the vendor will have the capacity to furnish you with the required resources at the ideal time and on ideal T&M terms.

Being the least complex way to deal with outsourcing engagement, it will function well for a long-standing relationship and long-term projects, in spite of the fact that it requires vast managerial experience and extensive technology background.

Choose a Dedicated Team Engagement Model when:

  • When you require more manpower for the in-house development team
  • When you have a reasonable vision of how your project ought to develop and have enough resources and time to stay informed concerning all the management aspects

The Pros:

  • You are in complete control. It’s almost like having an in-house team.

The Cons:

  • It needs management abilities and a blue-hat vision of the product to get the best out of a dedicated team.


You may have already detected that we’re inclining towards the Time and Material model as it gives significant control.

Our recommendation is yet solid towards the Fixed Price model for smaller products with restricted functionalities, and for here and now extends like building up a module for an effectively powerful tool. Conversely, if your project is long-term and extensive, it bodes well to hire dedicated developers. In case despite everything you’re confused on which engagement model will work best for your project at that point Get in touch with us for a free consultation.