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Outsourcing business models

Fixed price/time outsourcing model

This model does best for well-described projects with a detailed requirement specification, on a basis of which it is possible to allot the time for development, to form a team of designers, to allocate tasks and to estimate the cost of works.

This model does not suppose any changes in the requirement specification in the course of the project performance as such changes may result in considerable modifications in the parts already developed. In case some changes are unavoidable in any way, they shall be minor as far as possible and be paid for separately irrespective of the project cost.
The cost of these unforeseen changes shall be agreed independently.We recommend this model for the projects with the time of performance exceeding 12 man-months.

Time and materials outsourcing model

This outsourcing model shall be used for long-time projects, the cost of which is hard to be estimated for a variety of reasons. This outsourcing model is ideal for ever-widening projects and enables the Customer to monitor the budget, rate of development and its direction in the most effective way. This model is also suitable for the cases, when the project implementation demands some documents, specifications or source codes from the Customer, which cannot be made available by the Customer in time or their availability cannot be guaranteed.

This model supposes a "lease" of some specialists. The Customer just pays for the hours spent by these specialists on the project. The supervision over the specialists shall be exercised by daily/weekly reports, showing the accomplished tasks, time spent on them, specialists job rate, etc.
We recommend this model for the projects with the time of performance exceeding 8 man-months.

Working within the scope of this model, our specialists do not necessarily devote all their time only to this project, but they spent only the time, which is necessary for the project. They also may relieve one another and it means that some costs in time for familiarizing with the task and the existing processes are possible.

Advantages of the model

  • If you (as a Customer) do not have a clear and specified requirement specification, then it would be very difficult for us (as a Contractor) to estimate the time for and the cost of the project development. In this case we have to include some risks in the project cost, which will enable us to cover our working hours for contingencies. The project cost won't be changed irrespective of the fact if those working hours are used or not.
  • Furthermore, this model makes it possible to reduce the time for consideration of additional manhours, negotiations and meetings, which are inevitable in the event of any changes in the task and take much time.

Disadvantages of the model

  • The major disadvantage of this model lies in the fact that Customers often "are afraid" of the projects with open value and dates.

Solution: You can always start with this model, try it and then switch over to the fixed price/time outsourcing model.

  • The second disadvantage is caused by concerns about the reliability of the working hours reported by the designers.
Solution: source code and performed task control by the Customer's expert.


Dedicated team model

This model supposes formation of a team for the project and its 100% workload aimed exclusively at this project. The Customer in turn ensures the minimum workload of the team according to the 5/8 schedule (overtimes at the Customer's discretion) exclusive of public holidays of the Republic of Belarus. That is the Customer takes complete control of a team of programmers, ranging from a project manager to a tester. Composition of such a team shall be determined, when discussing the task, making the strategy and signing the contracts, and may be revised if required.

The following advantage of the model should be mentioned: the Customer's clients may also apply to our specialists, i.e. forward error reports to them, take their opinions, etc.

Thereby this model may be called a remote development "department". Efficiency of this model may be less than the same of the previous models, but in return the Customer gains more control. We recommend this model for the projects with the time of performance exceeding 16 man-months.