Effort Based Pricing or Time & Material
This engagement model is particularly useful in contexts where the projects are quite complex and long, proect specifications are not clear or require freedom of system design changes at project mid way. Time & Material model gives you greater flexibility in terms of developing the project specification on an ongoing basis and modifying the specifications based on the changing market needs.
Time and Material based pricing model is suitable when it is difficult to predict the scope and effort involved at the outset of a project due to
- New emerging technology
- New Idea with out Proper Plan
- Undocumented Business Process or Workflow Applications
- Evolving requirements due to lack of experience/evolving market
- Integration of heterogeneous environments/third party dependence
- Parallel development of hardware and software for controlling the hardware
- Exploratory nature of some technology projects
- For ongoing projects such as support/enhancements
- Protocol stacks/Operating system kernel software/device drivers development
Other Project Outsourcing Model
