2. Fixed Price
Time and Materials (T&M)
When to use
Pros and Cons
ODC vs. Staff Augmentation
Engagement Types Working Models
Collaboration in general
Day-to-day operations
3 Working Models
Information Flow
5 Roles
Hands-on Experience
Skills Statistics
Resources Offering
4. Fixed Price vs. Time & Materials
Factor to compare Fixed Price
vs.
Time & Materials
Payment:
Size of project:
Scope / Requirements:
Flexibility:
Client’s participation:
Methodology:
hours spent * unit price
medium & large
evolving
unlimited
significant
Agile
fixed
small & medium
defined
zero
little
Waterfall
Engagement Types Working Models Resources Offering
5. Fixed price
• Requirements are well defined
• Estimate and plan are accurate, no
need for changes
• Buyer requires quick turnaround
• Suitable for small and medium
projects like building a prototype,
an MVP (minimum viable product)
• Not work well in case changes
happen frequently
Time & Materials
• Requirements are unclear, subject to
be changed quite often
• Estimate is just for reference
• In case of urgency of deadline or staff
skills missing
• Suitable for medium to large projects
• Well adopted to changes driven
product / project
When to use
Picking up the right one is very important for project success.
Engagement Types Working Models Resources Offering
6. Risks about costs and time: on service provider
Fixed Price: Pros and Cons
Pros
• Allocated budget
• A clear picture about outcome vs. budget
(a defined scope and fixed budget)
Cons
• Zero flexibility
• Quality can be compromised within agreed
scope, time and cost
• Closed deal
Easy to manage
Not require close supervision / involvement
from buyer
Changes are rarely incorporated, or with an
increase in costs / time
It’s sometimes hard to agree upon what is
in scope, what is out of scope
Can cause critical misleading point when the
buyer asks for additional functionality for free
Little or no communication may result in
unsatisfactory deliverables
Engagement Types Working Models Resources Offering
7. T&M: Pros and Cons
Risks about costs and time: on buyer
Pros
• Flexibility (scope, time, cost)
• High quality and well-tested product, as
• Buyer can do whatever to accomplish
the scope
Cons
• Exceed the planned budget, as
• Increased hands-on management
The service provider bills more than his spend
Scope evolving is not well managed
Easy to add/remove functions to/from
the scope
Changes are rapidly taken into account
Scope / requirements definition
Project monitoring and controlling Buyer has full control on what he wants done
Higher buyer’s involvement -> higher
satisfaction
Engagement Types Working Models Resources Offering
8. T&M in details
Both Offshore Development Center and Staff Augmentation share the
same advantages:
Replace staff temporarily unavailable
Offload customers’ IT requests
Focus on core competencies
Meet peak-time demands
& Fulfill skill needs and
gaps
Engagement Types Working Models Resources Offering
9. Offshore Development Center (ODC) Staff Augmentation
Model type Strategic engagement, Result centric Tactical engagement, Resource centric
Engagement length
Pricing model Dedicated team & resources T&M (with exact numbers of hours spent)
Engagement scope Programs / Projects Tasks / Components
Team size Medium & Large (ten to thousands staff) Small (Up to several staff)
Managed by? Outsourcing vendor Client (with high involvement to supervise)
Creation enabled?
Contract structure Complex, Large Simple, Small
Scalability & Flexibility
Ease of adoption
Working model Offshore / Nearshore (Onsite at some extent) Onsite
T&M in details
Engagement Types Working Models Resources Offering
11. Collaboration in general
At any level of details:
• 1 sentence business need, OR
• 1 A4 page written document, OR
• A professional requirement specification
Contact points
• Fluent in English
• Strong communications skills
• English-speaking oversea working experience
• Studied abroad or have a Master Degree with high
English proficiency
Engagement Types Working Models Resources Offering
12. Day-to-day operations
We normally meet in clients’ mornings
(US time), also in our mornings (clients’
evenings) at some extent
Topics: requirement clarification,
technical solution, status update,
general meetings, etc.
VOIP phones Video conference
Screen sharing Chat & Presence
Send the staff to work onsite
(requirement analysis, deployment,
support, etc.)
Clients also visit our office and work
with the team
Meeting means Project Management
tools
Engagement Types Working Models Resources Offering
13. Fixed Price Working Model
Engagement Types Working Models Resources Offering
14. Engagement Types Working Models Resources Offering
• Instalment #1
• Instalment #2
• …
• Instalment #n
Your requirements
Our analysis
Your feedback
Our proposal
Approval
Your solution
32. Skills Statistics
Developers by Programming languages
Engagement Types Working Models Resources Offering
Developers by Scripting languages
(JS frameworks)
33. Developers by Payment Gateway APIs Integration Skills
Engagement Types Working Models Resources Offering
34. Developers by Social APIs Integration Skills
Engagement Types Working Models Resources Offering
35. Developers by Code Repository Skills
Engagement Types Working Models Resources Offering
36. Developers by Continuous Integration & Auto-Deployment Skills
Engagement Types Working Models Resources Offering
37. Developers, QCs by Functional Testing Skills
Engagement Types Working Models Resources Offering
38. Developers, QCs by Non-functional Testing Skills
Engagement Types Working Models Resources Offering
39. Developers by Cloud Platform Skills
Engagement Types Working Models Resources Offering
42. Thank you!
Call us for further information:
Address: Hall 5, Quang Trung Software City, Tan Chanh Hiep Ward, Dist. 12, Ho Chi Minh City, Vietnam
Telephone: (+848) 37 155 742 Email: info@elarion.com Website: www.elarion.com