Business ModelsStarting a new project, both customer and developer hope to achieve their goals while having enjoyable and useful cooperation experience. To assure this and avoid resentment over each other, parties should carefully choose the right business model that works best in each specific case. How do we determine successful model choice? It is simply a good balance between client’s requirements regarding project’s quality, timeframe and budget, on the one hand, and developer’s operational efficiency and cost, on the other.And a good pick is not once and for all, as it depends on so many factors and varies from project to project and also from customer to customer. This is where a risk-free trial period may be of help.There’s a truly wide variety of business models existing today, with new ones appearing as the answer to the ever changing IT market. Besides good old Time&Material or Fixed Price, there’s also new models like outcome based or managed services, etc.We at Logic Way practice all major models based on project’s category. Would you prefer Fixed Price, T&M or Dedicated Team or opt for something different – together we’ll find the best option. while applying any of the most accredited methodologies (Agile, Scrum, etc.) for your convenience.
Fixed PriceThe fixed price model is preferred for small and medium projects with crystal-clear and well-defined scope. Project cost is based upon preliminary defined terms and thus, any change of the initial requirements is immediately reflected in pricing. That’s why detailed estimation and discussion at the early stage are the keys to successful project deployment when using FP model. Project specification can be provided either by the client or developed at our side.
Advantages of FP model for the customer:
- fixed project budget and schedule;
- clearly defined project objectives and milestones;
- low risk;
- tight relation to customer’s business needs
- developer’s high level of productivity and motivation
Time and Material ModelIf your project is big and dynamic, particularly if it’s a product development, and there’s absolutely no chance to strictly predefine all its possible changes, then T&M model is a good choice. This is the customer who virtually undertakes all the possible risks of changing project scope, team size, workload amount or management type, paying for the actual time, namely, person-hours spent on the project.
T&M advantages for the customer:
- easy implementation
- all necessary project changes at minimum cost;
- flexible payment schedule;
- quick start of the project;
- quick start of the project;
- developers’ rates are obvious and easy to compare;
- resizable team according to workload;
- knowledge retention.
This model is proven to work well for product development or system support with occasionally arising tasks that are hard to plan.
Dedicated TeamThe dedicated team literally becomes an extended part of your own development team for a certain period of time. It means that all the work is done in compliance with your common practices and methods that are used in your company. The dedicated team is the right model for any long-term projects with undefined scope, but also in case you need some extra resources to meet extremely tight schedules.
Depending on the project, Logic Way offers the choice of the experienced developers with matching skill set. After several interviews, customer picks the right people and puts them together as a team.
Dedicated team advantages for the customer:
- close relationship between provider and customer;
- all team members are carefully selected specifically for your project for maximum efficiency;
- seamless working process in full compliance with customer’s established practices;
- direct management and ability to utilize the team for your various needs;
- good perspectives for long-term collaboration.
Of course, any parts of engagement models are negotiable. What is more, in case of large projects we advise to combine several models for maximum project efficiency and customer’s satisfaction.