Time and Accountability Model
We at Tejasoft firmly believe that there is a dire need of ‘Time & Accountability’ model to be adopted by the IT Industry. This model can help address many challenges that the industry is facing right now. We see the need for a better IT business model wherein both sides are equally accountable for the product till the last mile.
What is Time & Material?
‘Time & Material’ Model can be typically defined as a model where the project scope, specifications & implementation plans are not clearly defined at the onset of the project. This model provides flexibility of varying the size and the workloads of the development team assigned to your project. The total project cost is determined by the amount of time & resources expended and the actual efforts at the end of the project.
Challenges of Time & Material Model
The ‘Time & Material’ model though widely accepted in the IT Industry, has less scope for product innovation as it lacks accountability. This model approaches clients with no definite consumption of Time or Material leading to indefinite costs and little assurance on the quality of the delivered product.
Lesser per resource cost is a luring factor in T&M at the advent of the project, but in due course as the number of bodies increase so does the value of the contract.
Timelines take the brunt of attrition rates all due to lack of accountability. Often, the focus lies in extending the delivery dates and increasing the number of resources. As a result, the client is at a loss, the service provider wins but ultimately the product greatly suffers.
What is Fixed Bid?
A Fixed Bid Model is a business model where requirements & schedules are pre defined. Based on this project details estimation for the engagement is done in terms of deliverables, timelines, cost and the execution / delivery contract is prepared.