Fixed Price Projects
In projects where the clients have a clear picture of the scope and requirements, we suggest the fixed price model. We will review the requirements and provide a proposal which details the total effort and cost required for the project. This proposal would be based on the signed off requirements. Payment milestones, Assumptions, Schedule etc. will also be mentioned in the proposal. Once the proposal is approved by the client, the project is kicked off and the development proceeds as planned. During each payment milestone, signoff is obtained from the client on the delivery milestone agreed and subsequently invoice is sent to the client for payment. Any changes in scope are estimated and the additional estimated costs are shared with the client for approval as change requests. Once the change requests are approved, they are included in the development release plan based on the priority.
Time and Material Projects (Hourly Billing)
In projects where the requirements are not concrete and there is a possibility of scope change, we recommend Time and Material (T&M) model. This is also called as Hourly Billing Model. Based on the approximate volume of work, we agree on the number of hours required for development, the technology skillsets required and the duration. The client has a backlog of features to be done and the same is taken up by the development team, based on priority. The developers log their daily hours against the tasks which they undertake and timesheets are shared with the client every week for approval. At the end of the month, the client is invoiced based on the the total number of hours billed and approved by the client.
Dedicated Offshore Team Model
For clients who has recurring projects and tasks we recommend the dedicated offshore team model. Based on the technology stack, volume of work etc. , we come up with a resource plan which is approved by the client. Based on the minimum committed duration of the engagement, we offer a special pricing for the client. The offshore team then functions as an extension of the client’s IT team. In most cases, the offshore team would follow the processes and practices of the client team. Billing happens monthly on the agreed terms and conditions.
Global Delivery Model (Onsite – Offshore)
For project which need on-site support, we propose the Global Delivery Model. Based on the scope of work, we create the resource plan and the ratio of onsite – offshore resources. Key activities are planned onsite and Perfomatix deploys senior developers at the client location for the same. Majority of the development happens offshore, hence providing a cost-effective model to the client. The billing for GDM projects follow a T&M model billing in most cases. The rates would be different for onsite and offshore developers and the ratio of onsite to offshore developers will be continuously monitored to keep a tab on the overall project cost.