Business Models for IT Services Outsourcing
The team Radix comprises of top of the line development team that can hired for different types of turnkey projects. We believe in building long term relationship with our clients by offering highly robust solutions in the most engaging manner. Our services are well-structured and methodical. They are flexible enough to give you the all the advantages of a continuing partnership At Radix, we foresee ourselves as your reliable IT partner and not just one of the many one-off project IT service provider or vendor.
In today’s volatile economy, customers demand flexibility in associating with an IT service provider that synchronizes with their unique project requirements. We offer our customers flexibility in selecting any one or combination of business models to suit various phases of their project cycle.
At Radix, we enable our customers to have full control over their projects and also reduce their costs and IT overheads drastically. Our approach to outsourcing is bound to improve your IT effectiveness considerably leading to meet your strategic goals.
Depending on your project needs and financial resources, you can choose any model that perfectly suits your development projects. We follow three types of engagement models:
Fixed Cost Model
- The scope of the project is precisely defined
- Any changes in the scope of work are treated exclusively with separate estimation and prior approval of budget from the customer
- The project is devoid of external dependencies and has pretty straightforward timelines
- The customer is billed on pre-defined milestones
- Involves the technology that fairly established in the market
- Ideal for one-off projects generally required by the end customers.
Dedicated Resource Hiring Model
- The scope of the project is vague and efforts are difficult to measure
- Involves emerging technology and need is of long term engagement
- Work visibility is enough to allocate full time developers on the project
- Projects with open-ended scope of work which require iterative or incremental development
- Customer needs flexibility to ramp up or ramp down the team on short notice based on ongoing project requirements
- Involves parallel development of hardware and software or a co-located development teams
- Ideally suitable for Proof of Concept based projects
- The customer is billed a fixed price for each resource on a monthly basis
Hourly/Time & Material Model
- Project scope is partially clear and efforts cannot be estimated
- When project involves evolving concepts and frequently changing parameters
- Nature of work is intermittent in nature and dedicated full time developer cannot be assigned
- Projects that require incremental development
- Ideally suitable for support and maintenance of small to mid-sized applications where dedicated resource allocation is not required
- Client is charged based on the actual amount of time and efforts spent by our development team on their projects.
There can be two scenarios in case of hybrid model.
Business Model with combination of Fixed Cost and Time and Material models
- Suitable when initially requirements are not properly defined.
- Requirement Gathering phase can be done on hourly basis and once proper documented requirements are defined the development can be done on fixed cost basis.
- With this model client can have best of both the worlds. Client can have its concept of software properly documented in written format as well as have the project developed with set deadlines.
- Thus, it saves considerable time and money of the client.
Business Model with combination of Fixed Cost and Dedicated Resource Hiring
- Suitable when client is not ready with documented concept and would like to conduct a pilot project and see after sometime how his idea take shape in terms of commercial viability.
- Generally suitable for product development
- Requirements and certain select modules can done on dedicated resourcing hiring model which prepares the basic framework of the software solution.
- This can help client understand how his solution or product would look like and whether it advisable to go for entire development process
- The development can be done Fixed cost basis which is milestone based and client can properly plan the launch of its product or solution into the market or for internal usage