Debbe Stallone

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Let’s admit it, software companies are in a mad scramble to outrun their competition.

Nevertheless, what started off as a mere cost-saving strategy has now evolved into a sophisticated methodology of how to deliver quality and marketability at the least price.

In this ever-changing market, choosing the perfect engagement model for your business is a crucial aspect.

As every business requirement is different, one model won’t be the best fit for everyone.

To cater to the diversified needs of the clients, there are different software engagement models.

The fixed price model is best suited for small to medium-sized projects.

If you are choosing the fixed price model, you should be well versed regarding the scope of your project, its requirements, and deadlines.

For this model to work, you need to have an initial plan, cost estimation, and analysis in place.

This model does not need the client’s direct involvement, but it is necessary to get the opinion of a technology vendor who can analyze the cost of the custom software development and give a clear picture of the risks involved.

The initial phase is crucial to the success of the model.

Advantages:

Disadvantages:

This model ensures that there is a healthy vendor-client relationship with constant communication. It also provides flexibility so that at any point in the software development process, the project specifications can be changed.

If you are not clear regarding the features or scope of work of the project, then this is the model you should go for.

The client and the service provider agree upon a fixed time period over the allocated resources.

If you have various iterations and deviating development needs, the time and material model will be best suited for you.

This model is apt for projects involving IoT, Game development software or Artificial Intelligence software, wherein the end requirements may keep on fluctuating.

Advantages:

Disadvantages:

This model eliminates the shortcomings of both the models, you decide on a cost and you are free to tweak the features of the software or shuffle resources, or make modifications at any point in time.

It is the most compatible software development pricing model for long-term projects with constantly evolving requirements.

The client has to pay a monthly fee per team and also take care of other essential resources. The client has full control and right over the entire software development process and the work plan.

The entire team is monitored by the client.

So you can save up on the recruitment costs

Advantages:

Disadvantages:

Whatever software engagement model you are going ahead with, make sure to look at it

For small-term projects which require limited functionalities and well-defined requirements

2. Time and material model: