If the requirements are dynamic and the scope is not known this is best suited model for your business
Time & Material
The time and material model is very useful for outsourcing ventures. Sometimes it is seen that the actual costs, degree of redundancies, specifications, limitations, and scope along with the implementation plans of a project cannot be ascertained at the onset of the venture.These factors may change during the project implementation phase. The time and material model thus provides the flexibility to mould and get a grip of the situations, where the project and costs are headed, and likewise the payments are done.
The time and material model is apt for the initial phase of new development projects which require a bit of research and development. Time and material model is very effective if there are too many unknowns in a project. Costs can be curbed to great extents by following this approach.
One of the most important advantages of the time and material model is that the client can quickly assess and make decisions pertaining to the requirements and budgets. The aspects of the time and material model followed at Prakash are:
Prior to the start of the outsourced initiative, there is an agreed pricing / costing on an hourly basis between us and our clientele.
Prakash is a very honest and professional firm. While following the time and material model, sometimes we define certain minimum number of hours for utilization, in order to cover the fixed costs.
The time and material costing is analyzed by the time frames, which are ascertained and decided by a time sheet system, which is maintained by either us or out client.
We make it a point to see that the time sheets are approved by the client managers before it is used for billing purpose.
Flexibility to balance team size and project workloads.
Prakash advantage is also the ability to switch over from the time and material model to the fixed price model once the expense have been ascertained and judged by the client.