One of the greatest parts about acquiring bespoke software is that you get to keep a close eye over the process and provide input through most of the stages.
One of the first steps is providing the bespoke software development company with all the necessary information in regards to your vision of the product during the requirements gathering stage. After this you can then participate in testing the beta environment during the development stage. By having greater control over the project, you can be certain that the outcome will be exactly as expected. You are also able to have a say on the pricing model. Your choice is dependent on both your requirements and your budget. Most companies offer the two most popular models which are fixed-price and time & material agreements.
A fixed-price contract is a single-sum agreement where the software development company completes a project within the agreed sum and the given deadline. Despite what many people think, this pricing model is not always suitable for companies with a limited budget, as many IT projects still fail due to unclear requirements. For the project to succeed, it is essential to define all of the expectations upfront in order to get a sharp image of what to expect in return. A fixed-price agreement will often fit smaller projects, for example a website design, where you know exactly what you want it to look like.
If you can provide a bespoke software development company with a clear vision of the product you want and specific requirements, you can enjoy the benefits coming from a fixed-price agreement, which are:
A fixed-price agreement may be beneficial when it comes to budget control, but it limits the developers’ possibilities in return. If you do not have a clear understanding of what you want the software to do for you, you will quickly notice this pricing model is:
A time and material (T&M) agreement is completely different from a fixed-price contract as it presupposes billing customers for the amount of hours spent on the project along with the costs of necessary materials. Even though the hourly rate of labour is set, it is often difficult to estimate the total cost of the project. However, this pricing model offers you much more flexibility when it comes to adjusting requirements and shifting directions. You do not need to provide the software development company with a clear vision from the offset. It is recommended that a T&M contract is chosen for larger projects, such as the development of a mobile application, as many unexpected tasks may arise during the development process.
Even though the budget is not fixed, this method is highly beneficial and much more productive. If you are not certain of your requirements or you want to be able to modify the scope in the future, a time and material agreement offers:
By choosing a T&M model, you gain flexibility and control over the project and at every stage of the development process you gain a clear insight into what your software will look like. By getting involved in the process yourself, you can be certain it will suit your needs. Unfortunately, at the same time you do lose:
Having had experience in both areas, fixed-price and time & material contracts, we have developed a hybrid of the best characteristics of the two types. We know how dynamic software development is, which is why our model offers flexibility when it comes to changing your requirements during the development process. At the same time, we are aware of the fact that smaller companies may have a limited budget, and for this reason we always provide you with a project cost estimation. This way, you can both gain control over the project and better manage your budget at the same time.