5 Engagement Models to Consider When You Start a Project

One of the success factors of a customer project is an efficient engagement model. How to choose the right model for your project delivery? In our blog post, we’ll tell you about common engagement models and provide tips for selecting the one that will meet your needs.

Dedicated Team

The team is staffed with specialists that meet the specific requirements for skills and competencies needed for the client’s project. Before gathering a dedicated team, the service provider needs to find out about the product idea and the client’s expectations to clarify the project requirements. They also need to discuss the number of specialists for staffing a dedicated team and a preferred technology stack.

Service providers typically take responsibility for project management. If you prefer to control and monitor your software product development from your side, you can do it this way, too. As far as the pricing model is concerned, it’s quite simple and depends on the hourly rates of each specialist you involve in your dedicated team. Hourly rates depend on monthly salaries, service provider’s fees, administrative costs, etc.

When should you use it?

The model works best for large and scalable projects that don’t have clear requirements. Once the project needs scaling, you’ll be able to expand your project team quickly.

Outstaffing Model

If you experience a lack of specialists on your project or your project requires scaling, an outstaffing model can work. By employing this model, customers can fulfill their temporary needs and hire developers, QA engineers, and other specialists to join their in-house project teams. Outstaffing service providers supply the labor resources with the proven expertise in the required industry and business domain.

Compared to other engagement models, outstaffing is known for project management provided by clients while the service providers are responsible for recruiting, insurance, taxes, and other administrative tasks.

When should you use it?

The main reason for outstaffing is cost reduction, and such customers usually have an in-house IT team and project management competencies. The model is ideal for those who want to adhere to their business strategy and make important decisions themselves but need development or implementation assistance. Outstaffing is also good for extending an in-house team with specialized expertise.

Fix Bid Project Team

The engagement model is based on the precise estimate of project requirements, the scope of tasks, and time frames. Customers define a specific price while a software development company will be committed to providing a specific set of services within the agreed price. The fixed bid pricing model implies that the project scope and price remain unchanged during the project lifecycle. If the project needs additional scope of work, the client and outsourcing provider will make additional contractual agreements.

When should you use it?

The fix bid project team is perfect for projects with a limited set of features, clearly defined requirements, and predictable deadlines.

Technology Partner

The Technology Partner is defined as a company with extensive experience and a team of specialists from multiple fields, including developers, business analysts, designers, project managers, etc.

Technology Partners are responsible for a wide range of areas that include solution architecture design, software development, consulting on optimal tech stack, IT infrastructure reviewing, and security audit.

When should you use it?

The approach to this engagement model is based on the level of the vendor’s contribution and responsibility. Technology partners deliver software projects from the idea to implementation and fulfill any business and technical demands till the product goes live.

Offshore Development Center

When customers choose to build an offshore development center, they leverage all the advantages of an office equipped with specialists and infrastructure. Offshore development centers are opened in offshore countries with a rich pool of tech talent, favorable business conditions, and reasonable price-quality combinations.

When should you use it?

If you strive for redacted infrastructure costs, lower hiring and administrative costs, this model is suitable for you. With this model, you get a dedicated development center that will operate in accordance with your company strategy.

In a Nutshell

Regardless of the engagement model, you will choose, it’s crucial to weigh all pros and cons. When choosing the way an outsourcing provider will be involved in your project delivery, you should define what expertise is required, how many specialists you need, and whether you are ready to take responsibility for project management or want to trust it to the service provider.