Index Time and Material Model. Fixed price model. Dedicated team model. In the growing market of software development by outsourcing companies it is difficult to choose the most appropriate pricing model, considering all the relevant factors. Advance cost planning, less involvement in product development, risk mitigation – all these factors are crucial in defining the right model. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay So let's highlight three of the most popular ones: Time and Material, Fixed Price, and Dedicated Team. Time and material model. This model is more connected with real figures because you pay for the time and effort actually spent. Very often the customer wants to control or change some functionality at a certain stage, so that they can adapt the workload of the team and resources and prioritize the necessary scope of work. Such pricing model is best in providing flexibility because it helps to change project specifications at any stage of implementation. That's why it's excellent for IoT projects, game development, and AI, or any large project with unclear requirements. Pros: low-risk negotiable budget, which can be flexible in the agile methodology of the step-by-step process, helping to avoid problems in the initial stages shorter time needed to have a working product, based on the structure of the subtasks easy control by the customer over any phase of a project, adding necessary features when required. Cons: Difference in the final cost of a budget due to changing demands of a client, risk costs are not included unclear time limit of a project, request for more time and human resources, based on customer involvement. Fixed price model. If you deal with small or medium-sized projects with clear requirements, your answer is the fixed price model. This model is also called traditional or waterfall. The client negotiates time, specifications and scope of work and pays upfront based on the outsourcing company's estimate. Such a model does not require customer involvement but you will most likely need the vendor's detailed technical vision or software requirements specifications to estimate risks and the full workload. Pros: fixed budget and time before the start of the project, the accuracy of the estimate is very high (up to 90 %), all requests are discussed in advance with the team, so minimal client supervision is required. Cons: Requirements should be precisely defined including approval criteria and schedule after signing a contract every change costs extranegotiation before signing a contract involves numerous face-to-face meetings with project managers and account managers and unit managers for a more accurate estimate the testing period of a product presents itself as a final phase that can influence the final product. Dedicated team model. The dedicated team model is the modification of the time and materials model. It is also a model best suited for long-term projects with unclear requirements. The client pays the monthly salary of each team member and gets an experienced team and other resources needed for a project. With the right to total control and management of the process, work plan and human resources. The team works under the supervision of the client, shares the client's corporate values ​​and tries to achieve the project objectives as soon as possible. Pros: Please note: this is just an example. Get a custom paper from our expert writers now. Get a