Business Models - Pricing

Fixed price contracting model

Our fixed time, fixed price model offers customers a low-risk option and can be employed when the scope and specifications of the project are reasonably clear.

Fixed price model assumes that the client agrees to pay a fixed amount of money for the delivery of fixed software functionality. The positive thing about a fixed price contract is that a client knows the price in advance and it puts pressure on the vendor to be efficient.

The negative side of a fixed price model is that the vendor needs to build in additional costs to cover the expense of items that might come up. The client also may not be as motivated as it should to cooperate with the vendor when he needs questions answered or any kind of assistance because the client will think it won't affect the cost since it is a fixed bid.

Contracts based on Time and Material model

Time and materials model assumes that the client agrees to pay by the hour for the effort put into the project. With this kind of project, the client will not have to worry about the issues of what is included and what is not, like it has to do with a fixed price projects. The client and the vendor can make decisions and press ahead with the project. It will also be easier for the client to have a say in how things are done since it will have to pay the price if the least expensive route is not chosen. A time and materials contract also puts pressure on the client to do everything possible to assist the vendor in doing a good job. This usually leads to better results.

The negative side of this type of contract, however, is that the client will not know exact cost ahead of time.

To combine the advantages of both Fixed price and Time & Materials models Intelligence-Soft often enters into "mixed" agreements with the customers, where, for example, some part of the job is estimated on a fixed price basis when the rest of the work shall be done as the time and materials project.

Capped effort contracts

This is yet another pricing model combining advantages of both Fixed price and Time & Materials models. The price in the contract is the upper limit for the project specified. Our customer pays us on the basis of hours actually worked, but as soon as the total amount would be higher than the price limit specified in the contract, the customer only pays the capped effort price.

Remote staffing

This model (also known as Dedicated Offshore development centers - ODCs) is similar to the Time & Materials relationships and fits best of all for long-term collaboration with the client companies who needs a team of high educated skilled developers to complement its own IT personnel.

In this case Intelligence-Soft hires necessary number of developers having required education and skills, provides them with infrastructure and assigns them for the work exclusively with the certain customer. Customer pays for the work of these developers on monthly basis and has an opportunity to manage their work as if they were its own employees.



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