In software outsourcing projects, the type of contract is always based on the type of client, scope of the project and sometimes the chosen technology domain. Two widely used pricing models in outsourcing are; Fixed Price contract and Time & Material (T &M ) Contract
Fixed Priced Projects: We can follow a Fixed Price Model for projects that are specifically defined in terms of their requirements, schedules and project path. This model is preferred by clients who have a clear project scope available with them at the onset of the project, along with detailed software requirements specifications (SRS).
Under this pricing approach, we work with our clients to define their expected deliverable outcomes to determine a mutually agreed fixed price.
T & M projects: The Time and Materials ( T&M) price model is preferred when the scope of requirements can not be specified at the beginning of the project. This model is suitable for projects which are in their initial stage of development, and specifications have not yet been clearly defined.
The client pays an hourly development fee; which is a fee agreed mutually at the time of agreement. The hourly fee payable varies depending upon the complexity of the task, and the desired experience and qualification of the personnel involved in the development.
