What Is an Engagement Model in the IT Industry?

Fixed Price Model

What is the Fixed Price Engagement Model?

Advantages of Fixed Price Development Model

Disadvantages of the Fixed Price Development Model

Fixed Price Vs Dedicated development team

Time and Material Model

What is the Time and Material Engagement Model?

Advantages of Time and Material Development Model

Disadvantages of the Time and Material Development Model

Dedicated Team Development Model

What is the Dedicated Team Model?

Advantages of the Dedicated Team Model

  • Team Consistency and Commitment: The greatest benefit of this model is the team’s consistency and dedication. As the same team members work on the project throughout its lifespan, they get to know the project’s objectives, the client’s business, and all the specific challenges associated with it very well.
  • Greater Flexibility and Control: Clients have a great deal of control over both the project and the team. They can guide the team’s priorities, adapt the workflow, and even make decisions that closely resemble the in-house team.
  • Scalability: It’s quite easy to increase or decrease the size of the team depending on the project requirements. This flexibility makes it suitable for those projects with variable demand or those that are in the growing phase.

How to Choose the Right Engagement Model for Your Project?

In Conclusion

Frequently Asked Questions

Which model is the quickest to start?

Fixed Price can be the fastest to get the ball rolling because it does not require a lot of initial planning like the other two options.

Is it possible to switch models by the middle of a project?

Though challenging, such a transition can be handled through proper negotiation and frequent communication, making it particularly easier to change from T&M to Dedicated Team models.

Which is the most suitable model for a startup?

The T&M model is best for startups because of its flexibility and lower initial investment compared to the fixed costs of a Dedicated Team or Fixed Price model.


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