Methods of Work
Our contract types are based on the methods of work we apply. Fundamentally, they fall into three main categories:
- Fixed bid / price
- Time and materials (T&M)
- ODC / ODT
1. Fixed bid / price as a contract type implies the following advantages:
- there is no need for the company to get involved into long-term partnership;
- the agreement regarding the price is decided at the beginning and is not subject to changes anymore;
- we charge by "milestones" that are agreed upon before any work starts: after a milestone is finished and if the customer is satisfied with the quality and timeliness, we send an invoice;
- minimum of administrative burden and risks.
Development of projects with fixed price assumes that we come to an agreement on the price for development of the project, after which moment the price is not subject to any changes unless certain provisions are introduced into fundamental documents like agreements or contracts. In this case even the number of employees working on the project doesn't matter as the amount of payment does not depend on the amount of resources or time expended.
We recommend this service for small-size or urgent projects.
This option works perfect if the specifications of the software to be developed are particularized, clearly defined and stable.
2. Time and material contracts, in which a contractor is mostly paid on the basis of actual cost of direct labor, usually at specified hourly rates have their own benefits:
- pricing is based on direct labor hours at specified fixed hourly rates already including all sorts of expenses and profit;
- suitable for situations when the requirements are not fully known, or are expected to change;
- can also be used, when the customer wishes to augment their development team, by off-loading some parts of his application.
In T&M contracts the customer should be able to estimate the hours needed for a job and negotiate lower hourly rates to reduce the total cost.
3. Contracts based on Offshore Development Centre (ODC) / Offshore Dedicated Team (ODT) operation is a perfect solution for businesses wishing to augment their software development productivity without bearing too much of additional expenses like hiring extra staff or investing into other resources. Software development outsource based on ODC/ODT models works well for start-up companies aiming at reducing expenses and getting guaranteed results.
Benefits of ODC/ODT contract type:
- the customer is the manager of developers and is able to manage their offshore team in the appropriate way, adjusting office hours to the convenient time zone and reporting practices;
- the customer does not need to worry about routine matters and waste time on organizational tasks like hiring qualified developers and project managers, renting an office and so on.