Which is the best engagement model to select among Fixed price vs Dedicated team vs Time & material?

Choosing a perfect engagement model for any project is the most critical thing which needs to be figured out quickly. But, the engagement model will have a significant impact on your project when compared to the methodologies. Also, outsourcing is the best option chosen by many organizations to save money and earn more profits. Outsourcing will assist companies to utilize external expertise as well as derive results in a scheduled time. The engagement model will completely concentrate on wants, requirements, interests, and needs of the client and also provides a level of flexibility, control, as well as responsibility. The three well-known engagement models that are implemented in software development include Fixed price, Dedicated team, and Time and material models. Let's have a detailed look at the most popular engagement models.

Dedicated team model

The dedicated team model is generally implemented by businesses with long-term projects if requirements are not clear and differ with any alterations in the scope. It is also implemented when the own team of customers is not having expertise or skills in specific areas. An outsourcing team of the dedicated model will be connected to the client’s team for performing unique, high-quality, and particular projects without expanding the core team of client’s.

Advantages

• Choosing a dedicated team will be more economical when compared to a team independently, as it will be time-consuming and laborious.
• A focused approach will let you immerse yourself completely and concentrate on the project. If a team is completely focused on a project, it will offer the best results. Also, this model will offer complete flexibility for reconfiguring the team at every stage based on the requirements.
• Cooperation between the team and client will provide an ultimate planning as well as evaluating the weaknesses and strengths of the entire work process. Close cooperation by implementing tools such as Basecamp, Skype, Zoom, and Discord, offers complete control on the project.
• Continuous development will let you enhance existing functionality as well as add any new functionality.
• A quick workflow when compared with the time and materials model, as the workflow will be well-planned.
• The capability of optimizing the product is necessary for the growth of the product.

Fixed price model

The fixed price model is sometimes a bit risky for developers as they need to handle all kinds of risks involved. This model is favorable for clients as they need not pay anything more than the price agreed. But, this process is challenging for the developers. If the client comes with any alteration in the scope during the development stage of the project, then the software development company needs to compensate for any excess amount by reducing the profit margin.

Advantages

• The cost of work will be agreed in advance before going to sign the contract for software development.
• The terms and conditions of work will be clear; stages of software development will be approved by the developers and client, so that the project will be most likely to be delivered within the scheduled time.
• The development process will be coordinated by the project manager. It does not require any participation of the client's.
• There will be a minimal risk of any loss of funds.

Time and material model

The time and materials model will usually involve the payment for the effort and time spent on the development which is the actual time spent by using the functionalities of the project planned. This kind of contract is the popular one in outsourcing. It is considered to be flexible, convenient, and even able to adapt to any new changes. While coming to the budget, the actual cost will usually differ from the cost that is estimated. Payment will be done on a monthly basis for the actual work done.

Advantages

• A flexible developmental approach. This model is completely different from the other models while comparing its approach to managing and defining the scope and nature of work.
• Scalability and quick transformation to the market needs offers flexibility to offer any changes for the project.

• The option of clearly defining priorities of a project is well-suited for startups and small companies.
• Another advantage is time management. Tight scheduling will enable you to focus on essential elements of your project.
• Flexibility of budget and cost control.
• Clients can involve and monitor the development process to know the work is done within the scheduled time and the expected result is obtained or not.

Conclusion

There are many factors leading to the proper selection of popular engagement models. The factors that will be objective like the experience of the company, reputation, as well as the development cost. Nextbrain Technologies is the best web and mobile app development company in Bangalore providing robust and scalable software solutions and offering flexible engagement models to deliver successful business outcomes.