A comparison between Time and Material and Fixed bid engagement

1
A comparison between
Time and Material and Fixed Price engagements
for Software Development
2
Presentation Contents

• Defining the models
• When to use
• Project approach
• The cost / fee
• Reach us

3
Defining the models

• Time and Material
• and
• Fixed Bid

4
Time and Material
Fixed Price

• When the project scope, specification and
  implementation plans cannot be precisely defined
  at the outset or requirements change dynamically
  during the project implementation process, the
  time material model provides the flexibility of
  varying the size and workloads of the development
  team assigned to your project, while optimizing
  time and costs. Under the time material option,
  we provide skilled resources and the development
  effort is billed at the end of every month based
  on the pre-negotiated and a mutually agreed
  hourly rate. This engagement can go from a few
  months to several years.
• The total project cost is determined by the
  amount of time and resources expended and the
  actual effort towards the development.

• A Fixed Price model is viable for projects with
  well defined requirements and schedules. When
  your need is clearly specified in sufficient
  detail, we will estimate the project scope and
  complexity, and provide a project delivery
  schedule along with a fixed price for the
  complete software development.
• Under this business model, we ensure quality
  delivery of the final product within a
  pre-scheduled timeframe, and you pay a mutually
  agreed fixed price for the project implementation.

5
When to use
6
Time and Material
Fixed Bid

• When your requirements are not clear.
• When the projects are spread over several months
  to several years.
• When you require high degree of flexibility.
• When you want the project processes to be
  tailored to your requirement.
• When you want the resources to be controlled
  directly.
• When you want simplicity and want to avoid the
  complexity that always creeps into large software
  projects.
• When you want a fixed and dedicated team.

• When your requirements are clear and defined in
  detail.
• When the projects are spread over a few days to a
  few months.
• When you want little or no flexibility on the
  project requirements.
• When you want to determine the exact budget in
  advance.
• When you don