Software Outsourcing

CUSTOM SOFTWARE DEVELOPMENT PRICING MODEL: FIXED PRICE CONTRACT

Fixed price is not just a pricing model in custom software development; it predefines project processes and responsibilities of all involved parties. First and foremost, the constraints of the well-known Project Management Triangle—scope, time, and cost—are all fixed. They don’t have the ability to go over budget, and that’s the most favorable outcome for both parties. First, the scope must be defined. The Client should put forth the product requirements. After that, the contractor will calculate the price and timeframe.