Tailored Pricing Models For Your Needs

Different Pricing Models Types

Fixed Price

The fixed price model is a popular outsourcing pricing model. As the name suggests, under this model, the service provider and the client agree on a fixed price for the project before it begins. The price is usually based on the estimated time and resources required to complete the project.

► When and why:

Newwave Solutions uses this model when a customer wants our team to handle a project that is well-defined and have clear deliverables. When choosing this type of pricing models, you find it hard to divide the development tasks into smaller time-framed portions. Instead of that, we will estimate the final cost of our service in advance by determining the exact efforts necessary to complete the task.

► Best for:

• Small, short-term projects with a fixed budget in place.
• Companies that are new to outsourcing and are exploring their vendor options.
• One-time consulting services (architecture design, feasibility study, code audit, etc.).
• Proof of concept (PoC) development.
• Isolated development tasks with a defined scope (building a particular feature or software component, application migration to cloud, one-time security testing, etc.).
• Fixed-scope knowledge sharing activities (e.g., knowledge transfer sessions, user trainings).

T&M

The time and material (T&M) pricing model, alternatively known as the cost and materials (C&M) model, is one of the most common types of outsourcing pricing models. This type involves a bidding process where an outsourcing service provider bids for a client’s projects by presenting a proposal, based on the client’s requirements. Most of our projects are successfully delivered using this pricing model.

► When & Why:

Newwave Solutions prioritizes the Time and Materials (T&M) payment model due to its flexibility, transparency, accuracy, risk mitigation, and collaboration benefits. This model allows for agile adjustments to project requirements, ensures full visibility into costs, accurately reflects work completed, mitigates risks associated with evolving requirements, and fosters collaboration for successful project delivery.

► Best for:

• Frequent changes in requirements of projects.
• Projects that require quick responses to market changes or customer demands.
• Projects that need high flexibility: Iterative software evolution, reengineering, bug fixing.
• Partners who require a transparent working environment and close interaction between parties, the T&M model can be a suitable choice.

Extended Team

The extended team model operates similarly to the staffing model in that it also involves working with an external team of experts for a project. Similarly, the service provider assembles a team with the necessary skills and experience to work exclusively on the client’s project. As such, each team member must be assigned to the right roles to ensure a smooth working process.

► When & Why:

At Newwave Solutions, the extended team model enables seamless integration with clients, allows for quick adjustments in team size. Overall, this reflects our commitment to delivering tailored solutions and fostering enduring partnerships with our clients. Once the contract using this type of pricing model is completed, you are able to add more workforce to set up an offsite team as strong as your in-house team.

► Best for:

• Projects that require ongoing development and maintenance.
• The extended team model allows for flexibility in team size, making it suitable for projects with fluctuating workloads or evolving requirements.
• Clients who prefer to have a dedicated team of experts fully committed to their project, providing consistent support and tailored solutions.