Fixed Price V/S Dedicated Development Team: Which one is the better pricing model?

Fixed Price V/S Dedicated Team: Which is the Best Software Development Pricing Model

When you’ve chosen to develop an app, the most difficult phase is deciding on a Dedicated Development Team or Company. Because outsourcing refers to a situation in which one company provides services, choosing an IT outsourcing model can be confusing. Outsourcing has proven to be a boon to many businesses, allowing them to access world-class knowledge. 

This article will compare the dedicated team and fixed price model for your project. We’ll look into many viewpoints in-depth and give you information on who would be the best fit for your project. 

Fixed Price V/S Dedicated Development Team

1) The Fixed Price Model in Software Development

Of its long history of success and reputation for a long time, this model is probably still the most extensively implemented. The model, an accepted standard, involves completing service within a specified time frame in exchange for a fixed payment. The scope of the project and requirements are made clear right away. Therefore, the model isn’t known for being particularly adaptable, especially if your project requirements aren’t entirely apparent at the start. Including ongoing projects, changes require creating a new agreement and a re-evaluation of the final pricing. 

On the other hand, the Fixed Price model ensures that the software product is delivered within the agreed budget and timeline. The Fixed Price model may be suitable for you if you really can completely define the product’s features and specifications in the early stages of the project.

Another reason for the model’s relevance is the strictness of the contract set down at the start and the little to no variation from it throughout the project. If you, as a client, don’t want to be involved in the workflow during the work process, the Fixed Price model is for you. However, if you believe that the project features are numerous and likely to change over time, this model may not be the best option for you.

The Advantages of Using a Fixed Price Model:

  • Fixed budget – you’ll be able to better arrange your financial resources and know the final cost before you begin the job.
  • Strict deadlines: You will have a clear roadmap and set deadlines for every part of the project.
  • Output – From the start, you’ll know what to expect.

Disadvantages of the Fixed Price Model:

  • Limited flexibility – you won’t be able to change your web project specification once you’ve finished it and signed on it with the software development business. 
  • Limited Control – The control over the continuing process would be limited – because everything is decided upon at the start and releases are restricted, you have less control and adaptability over the development process.
  • Clear Scope of Work – Initial preparation of the Scope of Work (SOW) has to be accurate.
  • Price – You might end up paying a higher price.

2) Dedicated Development Team In Custom Software Development

This model is based on the concept of creating a remote team to work on your project. The value of having a professional development team cannot emphasis. In comparison to the Fixed Price model, the customer has a more active role in the project. It enables better handling of complex situations, which is important in the development of software programs. The client keeps track of the project’s progress and wants to have some control of the team.

The outsourced web development company aims to provide you with a team of great developers, project managers, QAs, and other professionals who are most adapted to your project’s demands. The number of team members and their skill sets is normally discussed at a meeting, and an agreement is reached before the project begins. The size and skills of the team can also change at any moment. The team’s firm commitment and complete focus on your project are also helpful.

The Dedicated Team model is typically selected when developing a more sophisticated product. Personal control of the development process is a highly valued feature among firms looking to release a new software product, so this work model is becoming more popular in the current market.

Advantages of Using the Dedicated Development Team Model:

  • Adaptability – because you have an entire staff dedicated to you and designed to your specifications, you have better adaptability and flexibility.
  • Cost-effectiveness: Getting a team to work on your project usually results in better cost-effectiveness and a lower total cost of ownership (TCO).
  • Direct command – you have full visibility and control over the team.
  • Collaboration – Improved communication with the software development company and the ability to expand the team at any time.

Disadvantages of Dedicated Development Team:

  • Longer Time – The project’s implementation could take longer, but only when the team is poorly managed. When you take on a capable project manager to the team, the problem will fix quickly.
  • Operations – A higher level of client involvement
  • Management – You must manage the team on your own and keep it engaged.

Fixed Price or Dedicated Development Team – Which is the best software development model?

This question has not a universal answer. It is dependent on the type of project to be completed. The Fixed Price model is better suited to shorter-term projects with specified functionalities and a clearer idea of what has to be achieved. Choose the Dedicated Development Team model for long-term collaboration with a higher degree of complexity and the need for flexibility. Moreover, you can check out what our client says about our dedicated development team.