Watch the presentation to know the best type of cooperation model for starting the project and choosing between Fixed Price, Time & Material and Dedicated Team. These tips will surely help you. Source: https://belitsoft.com/company/blog/tips-and-tricks-for-outsourcing/fixed-price-time-material-dedicated-team.html

1. Fixed Price or Time &
Material or
Dedicated Team:
What To Choose

2. Let’s say you decided to develop software
without having your own team of developers for
the project and for some reason you don’t want
to hire additional people in your company. It’s
clear that you cannot move forward without a
help of contractor. But what type of cooperation
model you need to choose: Fixed Price or Time
& Material or Dedicated Team Model.

3. When you are using Fixed Price model (as a
customer), it is easily to say why it suits you.
After all when you come to the restaurant you
want to know the price in advance to make sure
what to order and what will be the final price.
Thus the exact price is the key to any purchase
deal of other simple services.
FIXED PRICE MODEL

4.  When it’s a short-term project.
 When you have a full project description with
clear goals, working procedures and results.
 When you are working with new contractor
(pilot project with fixed price can be a good test
for contractor to become a permanent partner)
WHEN TO USE FIXED PRICE MODEL -
SOME EXAMPLES:

5. This model is suitable for projects where Fixed
Price can’t be given and for clients who are
willing to invest in a gradual and continuous
development of quality product as they
understand that creation of a new product is an
iterative process where the development has a
large number of rounds.
TIME & MATERIAL / DEDICATED TEAM
MODEL

6. The advantage for customer of Time & Material or
Dedicated team model that it’s almost the same
like managing local staff but distantly:
 If it’s a small project and you work using Time
and Material model, then you receive software
development experts available for you some hours
in a month. Development can be planned for
several months.

7. The advantage for customer of Time & Material or
Dedicated team model that it’s almost the same
like managing local staff but distantly:
 If it’s a long project and you need full time or part
time experts for 12+ months then the most effective
solution is dedicated team model as you receive
selected by you experts at the lowest available
price.

8.  During long-term projects when the current plan
means the attraction of additional long-term full
time resources and the use of new technologies.
 When the original needs and goals are unclear,
and you cannot predict the final result (i.e. in
case of start-up).
 When you know in advance that requirements or
task priorities will be changed (changing the
course won’t become too hard, since you're
running a dedicated team).
WHEN TO USE TIME & MATERIAL OR
DEDICATED TEAM MODELS:

9. Any the software development model is always
a balance of money, quality and timeline. Often
the customer‘s goal is to save money. In this
case, some teams can offer only a low-grade
product or delays in delivery.
Anyway customer is a king and he should
choose the model that suits him better.

10. It will be really great if the customer considers
creating a positive and friendly atmosphere for
contractor/developers working on his projects
and try to temper disadvantages of chosen
models and work out solutions if problems
arise. Anyway no one wants to shoot
themselves in the foot and release a product
with a bad quality or create a product, which
will be expensive to support in future. So, talk
with your contractor, discuss the details and
make rational decisions!

11. We have 22 Angular Js Developers in our
company who have created many web
applications and received dozens of reviews by
our clients from all over the world.

12. For More details you can visit our blog at:
https://belitsoft.com/company/blog/tips-and-
tricks-for-outsourcing/fixed-price-time-
material-dedicated-team.html

13. Location : Minsk
Belarus (220037)
Phone Number: (323) 419-00-39