Milestone Based Pricing
Time & Materials, the most common software development pricing method, makes it nearly impossible to anticipate costs.
Fixed-price engagement, a possible solution, requires that you provide detailed specifications in advance, a very difficult task.
Ignite’s unique Facilitated Fixed-price Engagement model trumps the customary Time and Materials engagement model by eliminating guesswork.
Our onsite team sits down with you to discuss your needs and expectations. Based on your input, we work together with you to derive your project specifications. We write them up for you, present them to you for your approval and, only then, determine a price and a delivery date.
Through Facilitated Fixed-Price Engagement you receive:
- Detailed specifications based on your needs and expectations
- Preset costs and delivery dates
- Minimized chances of needs to change requirements in later stages of development
FFP (Facilitated Fixed-Price) vs. T&M (Time & Materials):
T&M Engagement– In the Time & Materials pricing model, the outsourcing vendor works like a manpower company providing temporary staffing for software development. The customer is responsible for project management. The outsourcing vendor calculates a rate-per hour for each type of worker employed: program manager, architect, designer, group leader, team leader, programmer, tester, etc. Using this model, balance of expectations is often compromised and delayed delivery and cost overruns, common.
Facilitated Fixed-Price Engagement - In standard fixed-price engagement, the customer is solely responsible for delivering a detailed set of requirements to the outsourcing vendor. In Facilitated Fixed-Price Engagement, we work alongside you to define those requirements, write them up for you, and get your approval before determining the price and delivery date. That way, you know exactly what to expect, when to expect it and how much it will cost, right from the start.