Fixed Price
When to use
Clear requirements and determined deadlines
Limited of fixed budget
MVPs
Small projects with the limited project scope
Pros
Predictability
Transparency
Ease of management
Cons
Lack of flexibility
Less accountability
Time and Material (T&M)
When to use
Long-term projects with dynamic requirements
Project scope is not yet fully known
You want the flexibility to modify the scope of vary the workloads
Pros
Flexibility
Dynamic work scope
Better timing
Cons
Low budgeting control
Deep involvement
Offshore Development Center
When to use
Chosen by huge international global companies
Best-suited for large long-term projects and sets of projects bound together
Full customer control over the development process
Pros
Deliver products that exactly match the business requirements of their clients
Helps businesses to reduce operational costs and other expenses
Can have better visibility over all the working processes and control their costs
Cons
Language barriers and cultural differences with the remote centers;
Time-zone differences and collaboration problems
Requires additional investments in digital security to ensure safe data and product exchange between the centers in different countries.
Build - Operate - Transfer
When to use
The company is looking to open an office in another country and quickly build a major team without experience.
The company plan to open a subsidiary rather than outsource work
Pros
Lower cost and risk in establishing a new entity
High level of alignment with mother company culture
Complete control over processes and operational structure
Full control over processes and operational structure
Cons
Difficult to estimate the total cost from the beginning
Challenge to keep talented in transferring process
Company
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