In the 21st century, the companies want to achieve long-term cooperation with their customers. However, it’s not easy to combine trust and flexibility of demands of each side. The key issues – which work model is suitable for the client. This question has no single answer. This type of cooperation depends on many moments and requirements.
What is the model of cooperation? This is a convention between a company providing IT services and another company or person who need this service. The agreement includes the working methods, work conditions, price. Business models are selected depend on the project size and its duration.
The most popular of them:
Project follows defined specifications and planned timelines. Larger projects can be broken into stages with multiple deliverables and agreed upon costs. This approach works best with projects that have thoroughly documented SRS. It is also well suited for cases when very similar projects have been done multiple times by both the customer and the vendor. Pricing structure: fixed cost upon reaching each milestone.
- Suitable for little or middle size projects with defined requirements and certain results from the beginning.
- Price and work time are agreed before the work begins.
- Management from the client almost not needed, all details are defined before.
Long-term commitment to establish and operate managed software engineering facilities for the client. This approach is most suitable for multi-year product development and maintenance projects. In this scenario an off shore team becomes as an extension of your organization. Pricing structure: fixed monthly cost.
- Mostly used for long-term work with not certain requirements and changes tasks.
- Predictable price, though the workload is not certain.
- Motivation and control of a dedicated team that has a deep understanding of customer’s expectations.
Time and material model
Project is advanced based on agreed upon methodology. This approach is most appropriate for open-ended, long-term projects where it is hard to make a solid estimate of the required Level Of Effort. Often used when no detailed SRS (Software Requirements Specification document) is provided or there is a need to continually add new features. Pricing structure: hourly, based on the actual hours.
- This model represents flexible methods, suitable for big projects that have no vision of the finished product on the first stages.
- Low risk for two sides and contractual budget.
- Customer’s supervision over the project, any task upon request.
Recruitment for on-site work
We assist in finding the most qualified candidates who are ready to relocate and join your local organization. This approach is preferred by companies that require all work to be performed on-premise by the local staff. Pricing structure: fixed per resource fee.
- Management of temporary workers, possibility to measure performance.
- Improved ability to ensure effectiveness.
- Full contact for fixing issues that may occur.
- Money savings, efficiencies and enhancement of the service that you receive.
All parts of the pricing model can be changed and negotiated. If your project is large and long, it will be advisable to divide it into segments or blocks of tasks and in conformity with each task to apply the appropriate pricing model. You can also consolidate the type of contracts, that are the most suitable for each project to create a profitable communication for two parties.
Fiduciasoft provides all the pricing models. Fiduciasoft is responsible for each project, whether high level or elementary, for single person or for large business.