#10: Selecting the Appropriate Outsourcing Approach
There are three common outsourcing models:
- Time and material model
- Fixed-price contracts
- Dedicated development teams
Depending on your goals, requirements, scope, duration, budget, and other criteria, you may choose one of the models. How do you choose?
Solution: read our tips below.
The fixed price model requires you, as a client, to provide the full list of requirements for the project, in other words, scope, and set the exact deadline & budget. Unfortunately, due to the inflexibility, outsourcing teams are sometimes forced to drop a few features to make it in time. Or it might shift the opposite way, and you will have to pay extra fees for developers’ work because of unexpected changes.
The time and material model is an approach better suited for long-term partnerships and allows for changes on-the-go. With this model, you pay only for the features that have actually been added and avoid extra costs and poor results.
Dedicated development teams are basically extra workers on your team that fill in a knowledge gap. Instead of completely delegating your project, you will still be in charge and have more short-term experts on your team.