Documents for research

1. ENGAGEMENT MODELS
Effort Based Pricing Or Time & Material
Customers that desire a flexible and agile project execution should use the effort-based
pricing or time-and-material model. They are more involved in the creation of the software
product or solution in this situation. This technique is commonly used for product
development projects and works well when needs change frequently. In this paradigm, the
customer bears almost all of the project management and scope risks.
Pros
● Easy to comprehend and put into action
● It's a good tool for comparing pricing between different service providers.
● Flexibility in utilising the team for various tasks as required
● Retaining knowledge
● Both the service provider and the customer benefit from this low-risk approach.
Cons
● Service providers don't take responsibility for their actions.
● Due to a lack of career coaching, team motivation is low.
● There is no time or effort investment on the part of the customer in using service
providers' resources.
● There is no financial incentive for service providers to be as efficient as possible.
● Not directly tied to the needs or outcomes of the customer's business.
Milestone Based Billing
The billing model used by firms with project-based revenues is milestone-based billing. This
form of charging is usually only done after specified project milestones are met.
Alternatively, depending on how your project's payment milestones are set up, you may be
able to bill your clients on particular dates regardless of the status of your project. Using the
milestone-based billing approaches described in this document, you can accomplish this as
well.

2. Pros
● It's ideal for dependable recurring consumers.
● Obtain cash more quickly.
● Clients that prefer to be in charge and have a greater say in the process would
benefit from this option.
● Transparency
● It's ideal for freelancers and businesses who want cash flow before completing a
project.
● Long-term initiatives benefit from this feature.
Cons
● Some service providers are hesitant to use this model because they do not believe it
will work.
● Because the client must approve milestones, it might lead to a lot of back-and-forth.
● For first-time clients, this isn't always a good idea.
Dedicated Development Team
Outsourcing all or a portion of product development to a dedicated development team is a
dependable and cost-effective technique. It may be used for a wide range of tasks, including
growing large web systems and building MVPs from the ground up. The concept is
frequently employed in software development to provide remote customer collaboration.
Pros
● Excellent choice for long-term projects with a high likelihood of changing
requirements.
●
● Hire and scale a dedicated team with the right skill set and subject knowledge
quickly.
●
● Dedicated teams may quickly onboard and maintain product knowledge.
●
● When immediate job performance is critical, no time is lost on protracted estimations.
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● Complete command of the work and progress of a specialised staff.
●
● When compared to the costs of employing and retaining an in-house team, you can
save up to 50%.

3. Cons
● A 3-month commitment is required.
● Short-term projects have low efficiency.
● You must have a sufficient scope of work to keep your employees occupied.
● The client is in charge of project direction and prioritisation.
Built Operate Transfer (BOT)
Build Operate and Transfer (BOT) method of project procurement is used in the public
sector. To procure a project, it employs the complete range of financial and technical market
resources. The promoter or concession firm looks for equity capital as well as long-term
financing from banks and other financial organisations. The concession firm hires
contractors to build the facility and typically hires professionals to run it for the duration of the
concession.
Pros
● It reduces the amount of money that the government spends on infrastructure
development.
● It helps to lower the national debt.
● It promotes creativity.
● It allows you to bring in outside help.
● It directs public funding to the areas where they are most needed.
Cons
● It could result in greater transaction costs.
● It necessitates effective corporate governance.
● It may put the government at a disadvantage.
ProjectBased
If you have a plan in place but need additional resources to carry it out, a project-based
engagement is a good fit. You want to pay a set amount for a clearly defined scope of work. You
require assistance in completing a task by a certain date.
For individuals having a one-time/pilot project with well-defined requirements and deliverables,
we propose using a project-based engagement model. With this engagement model, you'll get a
full-fledged team from link8 to work on your project.