Recently, outsourcing services has grown from a fairly simple concept to a complex set of different options and models. World practice has developed in this issue three basic pricing models, which we will consider below and focus our attention in particular on the IT sphere, where they are particularly widely used.
There is a dilemma of choosing one of the available pricing options for software development. Very often the customer chooses how to cooperate, and it is important enough for him to understand how to build relationships with the contractor.
A proper planning phase is important. It’s not only about thinking ahead but also about being on the same wave with your outsourcing provider every day and benefiting from their expertise, as opposed to viewing outsourcing merely as an easy way to offload commodity work. You need to select the proper engagement model that is transparent to both parties and provides strong governance for all aspects of the relationship.
Below we will consider each option, give recommendations on the choice with a description of the pros and cons of each of them.