At AXIVON we offer multiple models for commercial engagement that can be tailored to meet your specific needs. You are invited to select one of our models or some combination of them depending on your project phase and needs. At a broad level we have the following engagement models
Fixed Price Model
A fixed price model is a model that guarantees a fixed budget for the project, regardless of the time and expense. The main advantage of a fixed price model is that it allows the client to plan and set an exact budget. Fixed cost pricing model approach is best suitable for projects with a strictly defined scope and requirements that won’t change. Any changes will require additional estimation and additional contract. So, one of the main requirements of using the fixed cost pricing model is to precisely define the scope and technical requirements up front.
The advantages of a fixed price model
- Precise and transparent requirements, and well-planned milestones
- Minimum customer supervision is required
- The price fixed project will be completed within established budget and terms
- Low risk for clients, that’s why a fixed price model works best for a small trial projects
Every aspect of the development process, project management, quality monitoring and assurance are on the service provider.
The pitfall of a fixed price contract is that if underestimated, the vendor may start managing costs and cut down expenses severely, which ultimately results in a poor-quality work.
Time and Material Model
Time and Material model is the most flexible business model in terms of both budget and projects specs. As with Dedicated Team, Time and Material model is suitable if the project specifications can be changed frequently. In this case, the total cost of the project is determined by the amount of time and effort spent on implementing the planned functionality. The actual budget may differ from the estimated cost and may be smaller or bigger than the estimate. The client is billed on a monthly basis based on the actual work done during the billable period and in accordance with the company price list.
When a Time and Material model should be applied
- There are no detailed specification, and requirements are likely to change in the course of development
- Final cost can’t be estimated due to the insufficiency of primary data
- he scope of the project can not be strictly defined and the development of the final product can take a lot of time
- Changes appear frequently during the implementation
- The client wants to keep an eye on the ball every time and take part in the project
Offshore Dedicated Development Center
An offshore development center is a software studio located in a country with a deep talent pool and lower cost of living and offering software development services for the company located in another part of the world, where keeping a team in-house would cost much more. An ODC usually includes all kinds of specialists besides programmers and testers, so they also offer project managers, designers, copywriters, UX/UI specialists and others for your team to be hired.
- The contractor model is more usual for smaller companies.
- With this model, an offshore development center gathers a full team in compliance with the project’s needs and manages the office and other work-related activities.
- This kind of work is useful for a wide variety of tasks from updating and expanding the older software, its support, writing new code or migration it to other platforms.
- This way, the main office provides a specification, and the team runs all the analytic and system design tasks as well, prior to actual coding.
- With the customer model, the customer’s powers are much bigger, which is why it suits bigger companies, or those from a narrow area of knowledge, and requires a lot of analysis, design and management tasks to be covered by the customer.
- In this case, the offshore development center offers a team of developers, and the other specialists that may be required are provided by the project management.
- The main office specialists research, analyze, design, test and deliver the product, while ODC teammates are focused on coding.