Pricing Models

Being engaged in the diverse array of cooperation schemes and approaches to software development, we know how to find the best interplay of our team’s key strengths and the specific demands of each client.

Once we identify the most suitable technology basis for a project we agree on the engagement model which fits best client's budget and scope:

Engagement models

Let us consider them in more detailed way:

PROJECT SCOPE

  • Small-scale projects
      • Term: 1-3 months
      • Team size: 1-2 IT-specialists
      • Preferable Pricing Model: Fixed Price
      • Best fit for:
        • Business analysis tasks
        • Requirements specification
        • Integration of travel suppliers APIs
        • Project Prototyping and Mockups
        • Pilot Projects Implementation
        • Simple static websites development
        • Any other small-scale projects implementation
  • Mid-scale projects
      • Term: 4-8 months
      • Team size: 3-7 IT-specialists
      • Preferable Pricing Model: Time-and-Material
      • Best fit for:
        • Development of concept Proof for Start-ups
        • Mid-scale Business application development
        • Software Maintenance and Support
        • Software QA and Testing
        • GP in-house products customization (moderate)
  • Large-scale projects
      • Term: 9+ months
      • Team size: 8+ IT-specialists
      • Preferable Pricing Model: Dedicated Team
      • Best fit for:
        • Long-term Development extension of a client's in-house team
        • Complex automation of a client's business
        • Enterprise Application Development
        • Software Products Development

PRICING MODELS

  • Fixed Price

      A fixed price contract presupposes a single contract price (or a price range) for a spesific scope of functionality regardless of the actual time and efforts incured by technology vendor. The price is normally paid in several installments: the first installment is paid as a prepayment before the beginning of works, the final installment is normally paid after the whole project scope is implemented and successfully delivered to a client.

    • Advantages
        • Fixed budget
        • Fixed term and deadlines
    • Disadvantages
        • Fixed price always includes possible risks and overheads which leads to higher final price
        • Project requirements should be static
        • Any changes in requirements should be agreed upon in writing and estimated additionally
        • Lack of flexibility in development process
        • Lack of control over development process from a client's perspective
    • Prerequisites
        • Fixed scope
        • Fixed requirements
        • More applicable for short-term and small-scale projects
  • Time-and-Material

      A time-and-material contract defines agreement between a client and technology vendor on hourly rates of vendor's IT-specialists, which normally vary depending on required skillset and qualification, as well as on project scope and timelines. However, both project scope and delivery timelines are normally set for indication purposes and are easily adjusted in the course of project implementation upon client's changing preferences. A client gets periodical (weekly, monthly, per iteration, etc.) detailed timesheet reports and keeps control over ongoing development costs.

    • Advantages
        • More cost effective in comparison with "Fixed price"
        • More flexible development process
        • Agile development is applicable
        • Gives a client control over the development process, priorities, team size and budget
        • Gives a client possibility to easily adapt to changing business requirements
    • Disadvantages
        • May lead to overbudget in case of unclear project requirements
        • Project requirements should be static
        • Any changes in requirements should be agreed upon in writing and estimated additionally
    • Prerequisites
        • Pricing is based on hourly rates and man-hours spent on project implementation
        • Clear vision over requirements for the next couple of iterations
        • More applicable for mid- and long-term projects with moderate scope and/or team size
  • Dedicated team

      Dedicated team contract defines the agreement between a client and technology vendor for a complete development team assigned exclusively for this particular client needs. A client treats this team similar to its in-house staff and experiences a full control over the team structure, size and workload. A client may even participate in candidates selection and hiring process. Monthly rates per IT-specialist and/or a team (rather than hourly) are more common for this type of engagement. In case of long-term ongoing projects (1,5 years +) a so called "cost plus" pricing model can be discussed.

    • Advantages
        • Full involvement into development process from a client's perspective
        • Full control over team size, structure, skill-set, and availability
        • The lowest rates (in comparison with Fixed Price and T&M) free from any risks and overheads
        • Clear vision of monthly development budget
    • Disadvantages
        • Is not appropriate for small- and mid-scale projects
        • A client needs to have understanding of how software development process is organized
        • There is risk of paying for "non-productive" hours in case of team's insufficient workload
    • Prerequisites
        • More applicable for large-scale and long-term projects
        • Great cost effective option for clients who search for possibility to increase their in-house development teams and capacity
        • Clear understanding by a client of specialists' qualification, skill-set and experience required

If you haven't desided yet which type of engagement models fits YOUR project best - turn to the following visual table:

Advice on PRICING MODEL depending on PROJECT SCOPE:

Advice on Engagement model

If still there any unclear moments for you - please, feel free to contact us!