ENGAGEMENT MODEL

In order to ensure maximum advantage for businesses, it is imperative that cost benefit, quality and efficiency is a significant focus for software development. Businesses demand best outcomes and transparent processes which are achieved via delivery model. Buktel Technologies has systematized and refined traditional delivery models. Our methodologies provide best leverage to derive and optimize maximum service efficiency prevailing vital factors like:


  • Resource

    Resource Ramp Up

  • Cost Effectiveness

    Cost Effectiveness

  • Timely Delivery

    Timely Delivery

  • Communication

    Communication

  • Time Zone

    Time Zone Difference Coverage

  • Technology Skills

    Technology Skills

  • Overall Risk Mitigation

    Overall Risk Mitigation

Engagement Models

Most companies aim at long-term strategic partnership with their clients. While, it’s the best way to leverage offshore economics. But, it can be quite a tedium to ensure flexibility along with a trustworthy relationship when engaging with an offshore partner to make the best out of the requirements. A right engagement model will make sure to have better control over the project aspects. A variety of factors may kick-in depending on specific expected outcomes. An engagement model is a contractual agreement, signed between IT services provider and a client, that specifies working methodologies, delivery terms, pricing, etc. Depending on the scope and duration of the project there are different engagement models, most commonly used are; Fixed Price or Time and Material.

Time and Material

T&M model is best suited for projects where the scope, specifications, deliverable and implementation plans are not completely defined when beginning the engagement or are expected to evolve over the period of the engagement. This model provides clients with the desired flexibility to manage team sizes and costs as the project progresses in phases. Among the different engagement models Time & Material (T&M) is gaining more is acceptance, since it allows more control over the development progress and cost, instead of taking an educated guess at eventual expenses and high probability of additional overpriced changes.

If any of the following applies to your project, you should consider T&M model:

  • When requirements are not precise or specifications cannot be clearly defined.
  • When on the first stage project is still raw and there is no sufficient data to properly estimate the final cost.
  • When client has constant flow of tasks or enhancements but they are scattered in time and cannot be predicted in advance.
  • When project scope is unknown or implementation spreads over months or even years.
  • When client requires high level of flexibility or change requests often appear during the development process.
  • When client wants more direct control over the process or provides certain resources that can influence the project implementation.
  • When project is connected with evolving markets, new technologies or untested facilities.
Advantages of the Time and Material model:
  • It uses agile methodology, perfect for large and long-term projects that can’t predict the end product on the initial stages.
  • Flexible and negotiable budget and low risk for both parties.
  • Significant client’s control over the project, any task or enhancement implementation on demand.

Fixed Price

Fixed Price engagement model or the project pricing model is utilized for the projects with descriptive scope, time-line and requirements before commencing of the project. The detailed sketch of the project process, scope, requirements and resources limits ambiguity and allows optimized performance of the project within the project time-line. It is important to understand when and where to use the Fixed price model. As there can be significant risk at time if even there little amount of imbalance in specifications.

Price Model

Here is when it can be best to choose a Fixed Price model :

  • If project result can be described by mutually acceptable and understandable terms and with an immaculate detailing. Agreement of both parties on the acceptance criteria is crucial here.
  • If client’s supervision over the project implementation is either inappropriate or not practical.
  • If requirements and methodologies are so specific that periodic deliverables can be expected at the agreed schedule.
  • If final project features are so clear that during the development process there is a little place for changes or modifications.
Advantages of the Fixed price model :
  • Good for small and medium level projects that have well-defined specifications and precise deliverables from the start.
  • Cost and timeframe are specified before the beginning of the work on project.
  • Little supervision is required from the client, all requirements are defined beforehand.


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