Project-based outsourcing is the best fit in case your project requirements and deliverables are clearly defined. It proves to be the ultimate choice for irregular though ongoing or one-off projects.
Project-based outsourcing provides for greater flexibility and focus, catering for changing needs for resources with pricing being based on the project scope.
Intellias takes over operational control over the complete software development process, with progress being monitored against agreed upon benchmarks. Typically, the client is only involved in defining and agreeing on requirements as well as reviewing the most important intermediate and final results.
With this delivery model, Intellias holds responsibility for development risks, while the client retains full control over business strategy and associated outcomes.
Business Case for Project-based Outsourcing
You may consider project outsourcing when:
- Cost benefits are to be obtained immediately (contrarily to the models that foresee initial investment)
- Outsourcing for you is rather short/mid-term goal, not a strategy
- Long-term investments are not intended
- Short-term project could not be handled internally
- Missing specific skills/know-how
- Project deadlines are constrained
Main Benefits of Project-based Outsourcing
- Quick realization of cost savings
- Improved focus on core competences
- End-to-end vendor’s responsibility for projects
- Access to specific technology expertise and best practices
- Sole responsibility of the vendor for recruitment, hiring and training
- Avoidance of long-term risk
Pricing models commonly utilized at Intellias for such kind of engagements are outlined below.
Time and Materials
This is an effort-based model with costs being calculated based on total project effort reported by allocated resources and pre-negotiated hourly rate. Time and Materials model enables the client to develop and adjust software requirements specification on the ongoing basis, thus achieving higher level of flexibility.
On a regular basis, Intellias reports on the actual project effort which is payable by the customer at the end of each month. Intellias also utilizes Time and Materials pricing model with Not-to-Exceed clause for projects with constrained budgets. If required, the development can be performed under customer’s supervision.
This pricing model is a perfect match for projects with well-defined and clearly documented requirements. The project price is fixed, as long as the project requirements remain the same. The payment itself is arranged in agreed phases which usually correspond to the project milestones.
6 months of post-delivery support are included into Fixed Price contract. Within this timeframe all discovered bugs are being fixed at no additional cost for the customer. Change requests and other support requests will be covered within the budget of estimated support effort.
In certain cases, Intellias applies combination pricing, in which the main scope of the project is billed according to Fixed Price model, while such phases as prototyping and implementation of change requests are billed on Time and Materials basis.