Business models

Time And Material

With the Time&Material model, you pay a monthly rate for the team's work.

Benefits:

  • immediate needs are met by designing product's features on the fly
  • you don’t pay for risks that don’t occur

Minuses:

  • there will be changes; you get only a rough estimation and final cost range
  • financial risks are shared between the supplier and client

Fixed Price

A Fixed Price business model suits projects with a fixed budget.
Benefit – from the very start you know the final cost. No changes.

Minuses:

  • the cost will cover all possible risks to ensure deadline adherence
  • all the requirements are to be distinctly specified at the start

Mixed Model

The mixed business model comes in several variations:

  1. “FP-to-T&M”. The software is developed within the FP model, while support is carried out through T&M.

    Benefit: you know the full price of the development at the very start and support lasts exactly as long as you need it.
  2. “Double estimate”. First estimate (low-end/high-end) is done at the start and followed by a final estimate for the project.

    Benefit: this is an FP model perfectly tuned for projects lasting longer than 6 months since it is difficult to estimate long periods of time. We make a final and exact estimate after a certain period of time.
  3. “Multi-FP”: a big project is divided into several iterations, each estimated separately.

    Benefit: avoid the risks of rough estimation for the big project; estimating every iteration separately makes each estimation more precise, which results in a lower budget.