Business Models
More than ever, business executives are under pressure to make sure technology investments improve their company's competitive position and boost the bottom line. With global outsourcing of IT emerging as a highly effective option for achieving these goals, many organizations are implementing "active outsourcing programs" to select and manage a roster of best-of-breed IT offshore service vendors. Several first class companies have chosen IT Six as a strategic partner to help them manage key areas of IT due to our deep capabilities in industry verticals, technical strengths, and innovative flexible service delivery.
- Effort based pricing / Time and Materials Model: we define the business model and work hand in hand with our client for end-to-end execution of the project. Invoicing is made at the end of the month, based on a fixed hourly rate. If required, once the scope is frozen, this model can be converted into a different model.
- Milestone Based Pricing Model: the customer pays a pre-negotiated fixed price for the complete project, which in turn is linked to very well-defined deliverables. A predefined fixed hourly rate is paid for any change. The hourly rate is negotiated before the start of the project.
- Mixed Model: part of the project is delivered on a fixed price/milestone basis and at the same time resources are allocated on a Time and Materials basis to handle other requests or enhancements. Adopting such a model enables the client to maximize the budget without compromising any aspect of the project. The effort based pricing could be applied to a possible support team, for instance.
- Dedicated Development Team: an extension of the customer's software engineering facility. The engagement is long-term and it brings tremendous added-value to the client. The knowledge is kept within the team and the members do not change. They are perdurably assigned to that specific customer. The project management can be done either onshore, by the client, or shared with the offshore Project Manager. A fixed monthly price is paid per developer or per team. This model guarantees persistence of the same team from one project to another.
- Strategic Sourcing - Partnership: one-stop-shop; one provider (IT Six) manages all the IT needs of a company, understanding its business requirements, strategies and pains. The offshore team is an extension of the customer's software department; vendor and client are together in good times and difficult times, sharing responsibilities and successes equally, sharing also the project management.
IT Six acts as a sole strategic offshore partner for all software needs: development, QA, etc. The staff may experience upsizing and downsizing at times, according to the client's strategic need. This model is meant to help our clients GROW while controlling the costs very well.
The pricing model implies middle to long term agreement; a fixed monthly price is paid per developer or per team. An implicit backup plan is in place for the eventuality of staff attrition.