How to select the right engagement model?

When it comes to selecting the partnership engagement model that will complement your business needs, there are various aspects to be aware of. At this point, it’s crucial to realize how important this choice is. Generally, all aspects matter as the final choice is a combination of smaller aspects. They, when put together, unite in a bigger picture, highly affecting your business’s performance. Next, let’s determine the best choice based on certain criteria.

Engagement model we use at KHEVNATECH

Size of the team

This aspect is crucial when making a choice. Let’s make it simple. If your in-house team is comparatively small and you have strict deadlines and a limited budget, the fixed-price model will be a great choice. As a result, this model will allow you to distribute resources wisely, focusing on composing a plan and simply adhering to it throughout the whole development.

On the other hand, if you have a bigger team and can afford some flexibility, the T&M model would be in favor. Hence, it will allow you to manage resources wisely and make a more open-minded development environment.

Budget

The financial aspect can strongly affect the right business engagement model choice. For example, if a budget is comparatively small and you are limited in time, the fixed price model will suit the most.

Alternatively, if budget is not an issue and you need more control over the resources used, time and material would be a fitting choice. Lastly, a dedicated team model is an excellent choice for planning a complex long-term project. Budget-wise, the dedicated team model is highly beneficial because it’s cost-effective. In other words, it offers an appealing price-value rate.

Product discovery

At KHEVNATECH, we provide product discovery by conducting deep research on your future brand, revealing potential rivals, and evaluating your product growth. It is a process at the initial point of successful product development. Hence, it allows you to minimize risks, save costs and make more balanced decisions. Here’s a video that shows how it works in more detail.

T&M gives plenty of room for flexibility and quick change adaptation. Moreover, it’s compatible with the agile approach we adhere to. Adopting this methodology allows for dividing the work into sprints (short tasks) and continuously improving the product.

Scope of work

In this matter, the scope of work refers to how the amount of work is defined. Accordingly, a project with well-defined objectives and a clear roadmap will likely benefit from the fixed price model.

However, with regularly evolving requirements in big projects, you’d better stick to the time and material model. It will be more effective given that many variables change in most modern development processes, and teams must adapt quickly to new realities.

Engagement level

The right communication and engagement level in the team matters a lot. Consequently, a dedicated model is a good choice if you seek a high level of engagement and collaboration with your team. Alternatively, both T&M and fixed-price models would be a better choice if you prefer a more hands-off approach.

Conclusion

Choosing the right IT engagement model is crucial for businesses to achieve their desired outcomes while optimizing costs. The four types of engagement models in IT we listed have distinct advantages and disadvantages depending on the business's needs, budget, and timeline.

We are always glad to have new opportunities to work on exciting projects. If you have an idea that can fire – feel free to contact us!