Engagement Models

Time & Material - In this arrangement the client is billed for the actual hours of work applied to their project on a monthly basis. It best fits for loosely defined projects/research/prototyping. The benefits are wide flexibility to change the scope of the project with no need to re-negotiate contracts for changes each time. T&M arrangements are usually paired with a thorough cost estimate on the front end in order understand the resources and cost range required.

Fixed Cost - The fixed cost model can be employed when clearly defined specification are available. The benefit being understanding your exact costs up front.

Dedicated Development Team - If a project is large and on-going a long-term assignment of a dedicated team that may work as part of the client’s team could be the proper model. The benefit is the ability to retain same software team for on-going project work.

Partnership (Risk & Profit sharing) - The most embedded partnership is an investment in development and/or marketing effort on both sides. This could include a co-ownership of IP and revenue/profit split. The benefit of this model is a true partnership with strategic interest in making successful product. It has the added benefit of reducing financial risk for the client. Partnerships can also be used in conjunction with more traditional engagement models.