Fixed Price Model
Concept
The emphasis is on TIME and MONEY. You as a customer know how much it is going to cost and how soon are you going to get the deliverable. Predictability and assurance is the hallmark of this model.
In this model you and GCS agree to a fixed price and timelines for a project at the beginning of a project. This is a popular engagement model which clients feel comfortable dealing with as it gives them a budget and timeline that is fixed. GCS has perfected this model and is adept at delivering high quality software in time and within budget.
Applicability
This mode of engagement is ideally suited for developing known and well understood solutions with relatively low to medium levels of complexity. This model is well suited for projects that have clear specification documents and sufficient amount of detail so that all risks are identified and all assumptions are explicit.
These projects typically leave little scope for changes and additions during the project execution. As a customer dealing with this model, you would be a knowledgeable person in the business domain and will have an understanding of the software development process. This model's success hinges on the active cooperation of the client. It assumes that the client will provide timely and relevant feedback and decisions.
Process
You will provide a detailed specification document to GCS. GCS along with you will review the specifications and ensure that all assumptions, details are made explicit. GCS will prepare an effort analysis and propose a fixed price and fixed time frame for the project execution. GCS also will highlight the scope of change and possible risks during the execution phase.
You and GCS will enter to in an agreement that covers visual aspects, documentation, application design, testing, support period, change management, communication protocols, milestones, timelines and commercial details. The project is executed as per the agreement.
GCS can help the client in evolving the specifications for the particular project at a fee. GCS's business analyst discusses the project in detail and prepares a low level specification document laying bare the various elements of the project.
Benefits
As the name suggests everything is fixed in this model. There is limited risk to both parties as the scope, price and timelines are fixed in this model. The advantage of this model is the mitigated risk that it offers to the stakeholders. This risk reduction is however based on the quality effort that precedes the agreement phase. The higher the detailing, lower are the surprises. GCS offers business consulting services during the specification stage.
There will be minimal scope to implement any new ideas or new requirements during the execution of the project. The application will be designed based on mutually agreed specifications. This obviously limits the changes that can be included during the execution of the project. This is a good model for all projects where the specifications of the project / product are clear and well documented with all aspects of estimation and change management mutually agreed upon.
Time & Material Model
Concept
As the name suggests the customer will be charged based on the resources utilized and the time spent for the project.
Applicability
This is the best method for implementing projects which are longer in duration and where the project specifications evolve as the implementation progresses. Large scale and complex projects are best executed using this approach.
The objective of any software project is to find a solution to a business problem. This model allows the software service provider and the client together to arrive at that solution. The best suitable solution possible to resolve the business problem can be delivered to the client. The focus is more on the solution and the specifications evolve to fit the business solution
Approach
This model has a start point from various stages viz. post specification, pre-specification, post architectural design, etc. A comprehensive scenario will involve problem definition, solution definition, research, business analysis, specifications, visual mapping, architectural design, documentation, coding, change management, testing, roll out and support.
The effort estimation for all the elements for all stages at the beginning of the project is usually involved and complex. You and GCS prioritize and scope each element. GCS prepares an effort estimate for that stage, defines the promised deliverables for that element and states the assumptions involved.
The implementation of each element is embarked upon with a provision for change management and assumption updates. The effort is charged on a pre-agreed hourly rate based on the quality of resource engaged. GCS and Client agree on a change management practice and provide room for the same.
GCS's effective project management ensures that effort is estimated and implemented in an effective and controlled fashion to reduce time and cost overruns.
This process is repeated for each of the elements until the solution is delivered in its entirety.
Benefits
GCS has considerable exposure and experience in implementing time and material projects. The client benefits from the strong business analysis, research and project management experience of GCS in achieving the desired business solution. Managing complex projects needs expertise in various aspects of project management and a symbiotic and close interaction of various skills and tools. GCS has the advantage of having all of them under one roof.
The benefit of this model is that it provides a business solution for complex business problems focusing on a solution framework and using diverse skills. The benefit of this model is tangible and is dependent on the level of expertise of the service provider you choose.
