Engagement Models for Mobile App Development

In this mobile driven world, Business associate IT outsourcing with cost efficiency and price arbitrage. Why not do more for less?  Statistics state that around $288 billion has been spent globally for IT outsourcing services and according to Deloitte reports, 53% of businesses outsource their IT functions. The reasons for these staggering figures to outsource mobile app development is quite simple: Due to sheer amount of benefits of outsourcing, it is highly implemented across different domains.

Mobile app development outsourcing helps to reduce and control expenses, reduce the time to market, accelerate company transformation.

However, when you decide to outsource mobile app development, selecting the best service provider and most importantly the engagement model becomes difficult task.

When it comes to selecting the engagement models, you are generally offered three models : Fixed Cost Model, Time and Material Model and Dedicated Hiring Model. Each model has its own pros and cons. Selecting appropriate engagement model for your business need complete analysis to outsource mobile app development.

To simplify the decision, let’s go through all three models.

Fixed Cost Model

You have to define the scope, requirements and timeline and pay a decided amount of fixed price for the final product. This helps a low risk option for the clients and is almost best suited for the situations when scope and specifications for the projects are clear.

When to Choose Fixed Cost Model?

• When you develop small or medium project that do not last for more than few months.
• Requirements are clear enough, well-defined and unlikely to change much.
• You want to test a new contractor, before you hire them as your permanent vendor.

Advantages:

• Transparency ensures timely delivery according to the release plan.
• At the project assessment stage itself, the process of development is divided into individual tasks. Thus, the workflow can be seen before it is initialized.
• It is pre-negotiated and predefined model.
• Complete access to reports on the development process
• Well-versed with any kind of projects

Disadvantages:

• Limitation in communication.
• There are scope-related risks, amendments in the scope will result in a change in the price.
• Minimum flexibility

Time and Material Model

Project and efforts are estimated in terms of  execution time and resources deployed.If you are willing to invest in the gradual and continuous development of quality app development, then this can be the perfect model.

When to Choose Time and Material Model?

• You do not have clear requirements and also have constantly/regularly evolving needs.
• The project is large, complex and requires multiple iterations.
• Requirements are fluctuated on time.
• You appreciate transparency in customer-vendor relationships

Advantages:

• Unlimited Communication
• Flexibility to change the needs without modifying the agreement
• Freely prioritize the tasks
• Complete access to reports on the development process
• Well-versed with any kind of projects
• Simplified project specification amendment as per the market needs.

Disadvantages:

• Price fluctuates based on the time and effort invested.

Dedicated Hiring Model

Under this model you can hire dedicated developers for your development purpose and keep the task and project management in-house. You only have to pay a fixed monthly fee for each resource you use. You are flexible to select skilled resources  and complete development process with knowledge retention.

When to Choose Dedicated Hiring Model?

• You have in-house staff and can manage the direct projects
• Long-term or ongoing project(s) which need outsourcing mobile apps continuously
• You have a fair vision about your project evolution and enough resources to stay on top of all management aspects
• You need more man-power to augment your  in-house development team

Advantages:

• The service provider is responsible for the administrative support, infrastructure, performance and hiring resources.
• You have complete control over the resources in the development strategy.
• Easy to change the priorities and tasks.
• Complete access to reports on the development process
• Well-versed with any kind of projects
• Imparts a deeper knowledge to developer about overall business case and actual goals.

Disadvantages:

• Need substantial managerial experience and a technical background.

Outsource Mobile App Development to LetsNurture

LetsNurture is one of the leading provider of web & mobile app development services giving you access to qualified and experienced professionals with a sound domain knowledge. Moreover, we have catered many applications in different niche.

When you outsource mobile app development to LetsNurture, you can expect cutting costs, superior project control and dedicated resources. Get in touch with us to know more about our services. You can write to us at info@letsnurture.com