Flexibility is our second name
Based on our experience we usually use the following business models.
In the T&M model, clients are billed based on the actual amount of time and resources expended by the software house on a specific project.
Advantages:
Flexibility: Changes can be easily made mid-project without a major contractual overhaul.
Transparency: Clients get a clear view of where time and resources are being spent.
Scalability: Easy to scale up or down based on project needs.
Disadvantages:
Uncertain Budgets: Costs can escalate if the project scope isn’t clearly defined or if changes are frequent.
Requires Oversight: Clients often need to closely monitor progress to ensure time is being utilized efficiently.
With the FP model, a software house commits to complete a specific project for a set price, regardless of the hours or resources expended.
Advantages:
Budget Certainty: The client knows exactly how much the project will cost from the outset.
Risk Mitigation: The software house assumes most of the risk, providing an incentive to finish on time and within budget.
Disadvantages:
Less Flexibility: Any changes to project scope typically require contract renegotiations.
Potential for Lower Quality: To stay within budget, a software house might cut corners if they underestimated the project’s complexity.
A software house provides services to a client over an extended period for a recurring fee, usually monthly. This model is great for ongoing maintenance, updates, or continuous development projects.
Advantages
Consistent & Predictable: Both parties have a clear understanding of deliverables and costs over the contract’s duration.
Dedicated Resources: The software house can allocate dedicated resources knowing they have a steady income from the client.
Disadvantages:
Less Flexibility: May be challenging to scale resources up or down rapidly in response to changing needs.
The client pays for a dedicated team of professionals who work exclusively on their project. This model is ideal for long-term projects where the client wants a team that’s intimately familiar with their project and can function as an extension of their in-house team.
Advantages:
Deep Understanding: The dedicated team becomes experts in the client’s project, ensuring high-quality outputs.
Cost-Effective: Over the long term, having a dedicated team can be more cost-effective than continually onboarding new contractors.
Disadvantages:
Higher Short-term Costs: Initially, setting up and training a dedicated team can be more expensive than other models.
Product Discovery Workshop
At EffectIT, we emphasize the importance of a thorough conceptualization phase for your software or product idea. We believe that understanding and meticulous planning are the cornerstones of a successful project. Our Product Discovery Workshop is designed to provide your vision with the detailed blueprint it deserves
- Clarity and Vision
- Reduced Risks
- Efficient Resource Allocation: