Fixed-Price vs Dedicated .NET Hiring Models Explained

Introduction

The world of outsourcing services is rapidly growing along with the rise in the need of different engagement models. It has been expected that the market size of outsourcing will reach USD 1.11 trillion by the end of 2030. Engagement models are crucial to be chosen because they define how smooth collaboration works among clients and vendors. This same holds true for .NET app development.

Engagement models are necessary for providing you with all the details from communication to defining pricing strategy. They use a comprehensive framework to accomplish all of this. Two most famous and renowned engagement models for .NET development services are Fixed price and Dedicated model.

If you go for a dedicated .NET hire model you have full control over the process and can manage the project scope. A set price approach, on the other hand, gives you a better understanding of the project’s requirements and budget in advance. However the right one for your project is to be chosen by you, we can just help you out to know each one better. This article will give you a nice comparison between both the models. We will describe all the factors including pros and cons for you to make the perfect choice.

What is a software development engagement model?

The software engagement model is a comprehensive procedure that covers every facet of outsourcing.It defines how a particular client is willing to work and collaborate with a .NET service provider. It informs regarding roles, pricing structure and relationship among two partners which is the one seeking services and other providing it. They also help with risk management strategy and maintaining production costs for better transparency among clients and vendors.

For an engagement model it is necessary to carefully consider the requirements of the client at the initial phase. Hence it streamlines the entire process of .NET application development. Also choose an appropriate engagement model where the vendor provides custom solutions that both parties agree upon. When you view it from the mentality of business side, here are factors that you must consider before selecting your engagement model:

• The kind of service you are looking for. Know if it’s small scale or long term service.
• Checking for the chances that this project can turn into complete failure.
• The budget set for your project and how much you can extend it.

What is a dedicated .NET hiring model?

Dedicated team .NET hiring model is a flexible approach where you collaborate with an entire team of experts. It offers you complete control as clients. Hence now you can define responsibilities and manage scope of the project. In this scenario service provider is the responsible one to seek the best talent in the market. And they might end up outsourcing project managers.

It is one of the best hiring models for long term projects which is agile and has high chances of changes. And as far as pricing is considered it is fixed as per the talent, expertise and skillset. It might also increase in case you need them to work overtime or use more resources.

Advantages of dedicated hiring model

• Long term commitment: We all are aware of the fact that a dedicated team will take up one project at a time. Hence you can expect to have continuity in services along with consistency for the entire lifecycle. Team members that you are well versed with have lesser chances to be changed. It ensures better efficiency because they are already aware of your needs and features to be implemented in your application.
• Flexible services: When you choose a dedicated model of hiring it provides you complete control over the project. Additionally you can adjust projects as per your set goals, financial budget, necessary tasks and other risks. Additionally clients can even input their ideas into development projects. Hence include any functionality at priority if you want.
• Unmatched collaboration: This .NET engagement model enhances transparency between both the parties. It makes sure both client and vendor have a proper understanding of goals and outcome to provide smoother collaboration. Collaboration ensures that clients can encourage their innovative ideas and feel heard. Hence regular communication ensures the process is streamlined.
• Team expertise and focus: Choosing a dedicated model means having a team that is expert and skilled. Hence you got people with special skills for your field. It leads to innovation and problem solving for your particular domain promising high quality results. As the team of vendors is exceptionally skilled it benefits users to achieve desired results.

Disadvantages of dedicated hiring model

• Rise in development costs: Dedicated team model has a great flexibility and access to top talent. However when you choose this model it might alter the project goals and needs at end time. Hence you might end up spending more as per new members added on your team and their skills.
• Longer process: When project scope is always changing the development process might keep changing taking up greater time. Client members might input their views, ask to add features, alter goals of the project and revisions to spot issues. All of these can delay the process. Hence it is less preferable for a project that has a fixed deadline to meet.
• Communication issues: Ensuring proper communication can be a problematic situation when the team is located in different timezones. It might lead to delays in reaching deadlines and standards. It might even affect collaboration in the project and lead to inefficiencies.

What is the fixed price .NET hiring model?

Fixed price model also known as fixed bid .NET hire model is an approach where you set a budget before you start implementing the project. It also ensures that features and project deadlines are fixed and cannot be changed in the coming timeframe. In case if a client wants to make any changes to the project they will have to sign another contract.

When you compare a fixed price model with dedicated hiring, the timeline might be strictly met in the fixed price model. On the other hand the flexibility is great with a dedicated hiring model. Fixed price model is majorly a good option for short and medium projects that leads to faster process of developing MVPs.

Advantages of Fixed price hiring model

• Preset scope: When you hire ASP.NET core developers at a fixed price model means you already have set requirements along with necessary functionalities. And both of the parties agree to fulfill them. Hence there is less for management during the software development lifecycle. Additionally when you lay a strong foundation there are lesser chances of misunderstanding and errors which causes problems in the process.
• Fixed budget: For a fixed bid engagement model you have your amount to be spent already decided. It is profitable for both vendor and client. Hence you get to simplify financial planning and rather focus on crucial functionalities of the project. It also ensures that resources and funds are carefully allocated. Furthermore, the price stays fixed even if the work requires extra.
• Lesser risk: When you have a fixed budget allocation of resources becomes easier as you already know that there will be no further costs incurred in future. It helps clients stay risk free from further financial losses. When the job is finished, there won’t be a budget surprise for you. Additionally you don’t have to pay extra costs at the end of the project for any extra resources.
• Fixed deadline: Fixed price .NET hire model ensures a set deadline to be met by the vendor which is agreed by both parties. It ensures that workflow follows a strategy ensuring smooth and better collaboration. Clients also receive a clear insight of what to add and what not to. Moreover there are lesser chances of delays in launch of projects and you can think of your marketing strategies.

Disadvantages of fixed price hiring model

• Direct investment: As a client you might have to set a budget that meets even provider’s expectations. It helps you set a budget aside and avoid any upfront costs in future. For businesses that want to set a lower budget aside this fixed price model might not be a right choice.
• Limited scalability: The fixed price hiring model might not be agile to your changing requirements. After you have reached a phase where your decision regarding budget, features and risk is done it’s rarely possible to make any change. Additionally, you might need to sign a new contract if you wish to do so.
• Lesser flexibility: As per name, fixed price model has both scope and budget set at initial phase. Hence having no flexibility can be at times annoying for both vendor and client. If you want to hop on any new software development trend, the fixed scope would make it impossible to do adjustments.

Fixed price Vs Dedicated .NET hire model: Quick Comparison

Conclusion

Fixed price Vs Dedicated .NET hire models are not each other’s competitors but are two different paths leading to the same goal which is developing a successful application. When you choose a fixed price route it gives you a perfect roadmap with fixed stops, fixed fuel and a clear destination. But in the case of a dedicated hiring model it provides you with the steering wheel of .NET software development. You have a skilled crew by your side and a chance to explore as many turns as you want.

The question here isn’t which one is best? Rather it is which one suits better to your needs? If you have steady and predictable needs, a fixed price model can keep things right and controlled. You can have the flexibility to create an unrestricted future with a committed team.

Stop for a moment and assess your needs, risks and pace innovation. And if you are not clear about what choice to make, Bigscal is always ready to guide you towards the model that helps you succeed in your project.