Dedicated team or fixed price?
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
- Hire IT staff on your payroll
- Outsource the IT operations to an external company
- Hire freelance IT persons
- Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
- The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
- There are no disputes about the workload needed to complete a project
- Strong relations are developed between the internal staff and the offshore team
- The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
- The outsourcer has full control over planning
- There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
- Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
– Hire IT staff on your payroll
– Outsource the IT operations to an external company
– Hire freelance IT persons
– Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
– The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
– There are no disputes about the workload needed to complete a project
– Strong relations are developed between the internal staff and the offshore team
– The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
– The outsourcer has full control over planning
– There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
– Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
- Hire IT staff on your payroll
- Outsource the IT operations to an external company
- Hire freelance IT persons
- Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
- The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
- There are no disputes about the workload needed to complete a project
- Strong relations are developed between the internal staff and the offshore team
- The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
- The outsourcer has full control over planning
- There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
- Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
– Hire IT staff on your payroll
– Outsource the IT operations to an external company
– Hire freelance IT persons
– Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
– The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
– There are no disputes about the workload needed to complete a project
– Strong relations are developed between the internal staff and the offshore team
– The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
– The outsourcer has full control over planning
– There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
– Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
- Hire IT staff on your payroll
- Outsource the IT operations to an external company
- Hire freelance IT persons
- Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
- The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
- There are no disputes about the workload needed to complete a project
- Strong relations are developed between the internal staff and the offshore team
- The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
- The outsourcer has full control over planning
- There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
- Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
– Hire IT staff on your payroll
– Outsource the IT operations to an external company
– Hire freelance IT persons
– Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
– The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
– There are no disputes about the workload needed to complete a project
– Strong relations are developed between the internal staff and the offshore team
– The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
– The outsourcer has full control over planning
– There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
– Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
- Hire IT staff on your payroll
- Outsource the IT operations to an external company
- Hire freelance IT persons
- Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
- The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
- There are no disputes about the workload needed to complete a project
- Strong relations are developed between the internal staff and the offshore team
- The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
- The outsourcer has full control over planning
- There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
- Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
The past few years, Bridge has experimented with several delivery models. The two models we have built and used most for our customers are ‘fixed price’ and ‘dedicated team’. And every day we are wondering: which of these two models delivers the highest value to our customers and makes offshoring work most effectively?
Fixed prices have one crucial pre-condition: it needs to be clear what exactly has to be built, when it is not, the estimate of the workload will be completely wrong. And more often than, people are wrong about the workload. As with building houses, I have never seen a house being delivered in time and according to plan. Web/software suppliers ‘protect’ their profit margins against wrong estimates by adding a big margin in the hours and in the hourly rate. The result is higher pricing and a lot of energy spent on the question ‘how much will the project cost’ and ‘what can be charged as extra work’.
Now the primary ‘problem’ that companies are solving by outsourcing their IT is ‘capacity’. They need people to run their IT-operations (be it a system, an application or a website). There are several options to run your IT:
– Hire IT staff on your payroll
– Outsource the IT operations to an external company
– Hire freelance IT persons
– Hire temporary people from an external employment agency
From the experience at Bridge, I believe the strongest model for running IT operations is having your ‘own’ dedicated people, operating in a team where the team members know each other and have a strong team spirit. To build that team, hiring people on your payroll may seem cost-effective and easy. Apart from the fact that often it is not as cost-effective as it seems (overhead, illness, holidays, etc), your company becomes less flexible (hire/fire) and internalizes a skill that is often not the core business.
Another option is hiring external experts. This ensures flexibility and ability to hire the right skills for the right job. But the costs are substantial if you hire these experts locally. Besides, it is usually not possible to hire local dedicated teams. The local outsourcing relationship is by default customer-supplier, because hiring a full time dedicated team from a local supplier will incur high costs without any advantage over internal staff.
In an offshore situation, companies are able to create a situation where they are able to hire dedicated teams while keeping costs below or at the same level as hiring staff internally. The outsourcer can select the team members, train them and build a strong team that can work for the company for the long term. The bottom line in this way of organizing is that the outsourcer is always flexible in his capacity and has no long term employment engagements.
Having a dedicated team has a few advantages over making fixed price arrangements:
– The need for 100% clear specifications disappears (because the requirements can be developed partly onshore and offshore + projects can be organized using agile methodologies).
– There are no disputes about the workload needed to complete a project
– Strong relations are developed between the internal staff and the offshore team
– The model is more cost effective (the supplier doesn’t need to add a ‘security markup’)
– The outsourcer has full control over planning
– There are no communication layers, all communication is straight between the outsourcer and his team (in fixed arrangements, several layers of project management are often needed)
– Knowledge can be kept with the outsourcer (his team will keep the knowledge, whereas in fixed arrangements, team members will often be replaced to other projects)
In the past, Bridge has always offered the dedicated team model. Because we truly believe this is the most effective delivery model in an offshore situation, we have recently started shorter-term contracts. Where we previously used a minimum duration of 6 months, we now make it possible to hire people for any period from 1 week. The response from our customers is very positive and after launching this initiative 2 weeks ago, we already embraced 3 new customers.
We hope to receive some feedback from readers on our considerations on our business model. Maybe you have a different view, suggestions for changes in our models or you agree with our considerations; please share it with us.
About Hugo Messer
Hugo Messer is a Dutch entrepreneur, distributed agile team specialist, and author. He is the founder and owner of Bridge Global, a software services provider, and ekipa.co., an agile coaching agency. He has been building and managing teams around the world for the past several years. His passion is to enable people that are spread across cultures, geography and time zones to cooperate. Whether it’s offshoring or nearshoring, he knows what it takes to make global cooperation work.
View all posts by Hugo Messer →
Hi,
I am freelancer and developed so many projects in c#, VB.Net, SQL, Sharepoint etc.
Thanks,
Shahbaz Aslam
SHahbaz, maybe you can reply on the content in our blog. we don’t intend to use it as a platform for you as freelancer to promote yourself.
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I am working with Bridge at the moment on a project and I can confirm the advantages of the dedicated approach. However much one may dream of defining the specifications 100 per cent in advance, there will always be the details that have been overlooked, the new ideas that a client throws up, and simply the fact that it is while working on a project that new thoughts emerge. If each one of these variations had to be the subject of a price negotiation between us, the subcontractor and the client because “it wasn’t in the original contract” it would considerably add to the stress levels of managing the project. By working with a dedicated team, you keep control over what levels of flexibility are to be permitted in a human way and control the budget on a global scale rather than on a specification by specification level.
What about the disadvantages?
Plus I don’t agree with all advantages:
The need for 100% clear specifications disappears => use agile or some process to deal with changes
disputes about the workload => fixed price shouldn’t have a dispute about this, only when the project is complete ;-)
even within the customers organization you don’t want to continue projects forever.
So the real question is, when is a project finished and can we define it upfront or should we deal with changes over time
and have a contract accordingly.
The outsourcer/customer has full control over planning => does he want that?
team can still change over time (people leaving the company is more common in these countries)
What about transferring risk?
The real question is what does the customer want with outsourcing.
The used delivery model should deal with these requirements.
Many lost words for discussion.
what is about disadvantage for your topic?.
The outsourcer/customer has full control over planning => does he want that?
I been looking for step by step and cleary to knowing about this,but its okey..you may more explanation for this
We also observe raising popularity of dedicated team models. As there are more communication tools (Google Wave for example), it is getting more easier for customer to manage the distributed development.
According to “Central and Eastern Europe IT Outsourcing Review 2008” – a research conducted by Ukrainian High-Tech Initiative, during 2003-2007 the customers were tending to switch from project-based outsourcing model to hiring dedicated programming teams, – so that the customers contract and manage IT staff directly. Although fixed-price project model seems to provide less risks, it also restrains significantly the development process and can result in overestimated budgets. According to the research results, since 2008 until 2008 the number of project contracts has fallen by 30-35%.
Today, the vendor ought to be fully in synch with the needs of the client and innovate to exceed client’s expectation. With constraints on the budget and ever raising bar set by the end user- on the client side – there is no one model that can fit all scenarios.
We have successfully tried out a model where a “static” core dedicated team co-exists with a “dynamic” – fixed price team. This model attempts to bring in the benefits of both the worlds and we (vendor and client) have seen the benefits.
Caveat: Can’t start off with this model at the start of an engagement. But over a period of 6 months to a year, we can comfortably settle in to this model.
Nice article, about the important of team specially dedicated team and it works are awesome, if we take the help of there it will useful for our organisation, and freelancers all no able for various projects, thank you.