Posts in category: Business

It takes more than simply writing code to build a new piece of software. Architecture, requirements analysis, design creation, and testing are all steps in this process. The solution is then implemented. Businesses intending to build an application should be aware of the many software development pricing models currently available on the market to make an informed decision. That way, you’ll be able to choose the best option for your project and get the most out of your collaboration with a software development firm.

In this post, we’ll look at the three main software development pricing models, as well as their variants.

It’s worth noting that there’s a huge variety in this market, with numerous models, hybrids, and even name variations. Furthermore, in the contracts prepared by software development agencies, one model may be implemented in various ways. That is why our list is far from complete. It is, nonetheless, a valuable source of knowledge about the most commonly used software development pricing models today. And with this information, you’ll be able to make informed decisions regarding the price plan for your app development.

Software Development Pricing Models and Variants 

1. Fixed-price model

Additional variants include fixed-budget, fixed-time, and fixed-scope

2. Time and material software development pricing model

An additional variant is the milestone pricing model.

3. Dedicated team

The model has three variants: offsite, onsite, and outstaffing contract.

So let’s have a look at the pros and cons of each of these software development pricing models now. 

1. Fixed-priced software development pricing model

This software development pricing model adjusts the development process based on cost and time predictions based on the project parameters. The budget, specifications, and date of delivery are fixed here. Most projects have a predetermined timeline and set of goals that serve as a basis for calculating payments.

To guarantee that the project is completed on time, it is important to clearly define the scope of the work and establish milestones for completion in advance.

Such a model, on the other hand, makes risk management problematic. It is important to remember that the provider is accountable for the whole management process in this instance. Therefore, it may not be easy to monitor the project’s progress.

During development, unexpected events may occur, including:

Every time you try to change the scope of the project, you will encounter challenges. You’ll need to modify the contract and come up with new conditions to meet your needs. Your product’s time-to-market will increase as a result of this.

If the team comes up with a brilliant new product or solution that would add significant value to your business but needs more time, they may not be able to share this information with you. And that’s because under the fixed-price software development pricing model, the original plan must be adhered to.

Because the agency can’t lose money, the team will work around the clock to meet the agreed-upon scope. In this case, you might forget about better code quality and a robust quality assurance procedure. To meet a deadline, the team must provide a specific scope of work on time; if anything unexpected comes to light, the quality will suffer the most.

The above scenarios make collaboration with your software development firm difficult. 

What are the possible outcomes?

• Because they can’t fully use their skills and expertise, the team will only work half-heartedly.
• Even though you’ll precisely get what you requested, it won’t be the best product you could have had.
• You’ll have a hard time making modifications.
• The team will not provide any ideas that would be beneficial.
• In this case, you won’t be completely satisfied with the result because of the quality of the product.

When should you use a fixed-price software development pricing model?

• Your project is small and has a short timeline (lasting less than two months).
• You don’t care about being a part of the development process or having a say in how it proceeds. You’d rather agree on everything upfront and then hand the project over to the team as a whole.
• If you wish to work with a new provider, you can set up a short pilot project to see how the firm performs before employing them for a major, long-term project.
• For your project, you’ve got all the technical specs and a well-developed strategy, as well as wireframes, user journey maps, and user stories in place, so you’re ready to get started. Naturally, it would be beneficial if you had plenty of time to prepare these papers.
• There is no doubt in your thoughts that the project’s requirements will not alter in the future.

What do you pay for?

So long as the fixed-price project is completed as per its initial estimates, you pay just for the amount of work agreed upon in advance.

The contract should clearly outline your and the provider’s duties, such as deliver data, feedback from testing, and quality standards. Every time you go above and beyond what was originally agreed upon, you’ll have to pay a fee.

Additional variants of the fixed-price software development pricing model include:

1. a) Fixed budget pricing model

This software development pricing model has a set budget, but the timeframe and scope of the project may be altered throughout the development process. A very limited amount of money is available for this project. Because of this, the software development company will work on building the best possible solution for this budget. Feature and scope changes are possible, but not at the expense of budget changes.

When should you use a fixed-budget software development pricing model?

• You are on a tight budget
• Because your product specs aren’t set in stone, and your project deadlines are open to constant optimization, you and your team may keep the project scope as fluid as necessary.

What do you pay for?

Regardless of the scope of the project or the delivery date, you pay the agreed-upon amount.

1. b) Fixed-time software development pricing model

It focuses on a team’s ability to provide the product on time. Project parameters like scope and budget may be adjusted, but the deadline for delivering a solution remains fixed.

When is a fixed-time model appropriate?

• The most important factor is time, which you estimate to be two months in most cases. Do as much as possible at that time.
• Getting your product out into the world quickly is something you’re after.
• You expect the solution to be completed within the given period.

What do you pay for?

When you hire a team, you pay for the number of hours they work on your project within the agreed-upon period.

1. c) Fixed-scope software development pricing model

The project scope is set in this model and cannot be amended throughout the project. Nevertheless, the team has some discretion under your guidance in terms of product delivery timelines and budgets.

When should you use a fixed scope pricing model?

• You’re looking for a specific product, and you know precisely what you want.
• Your team may constantly adjust both your delivery time and your budget based on your needs.

What do you pay for?

When you hire a team, you’re paying for the time it takes to complete the agreed-upon scope of work.

2. Time and material software development pricing model

The time spent on your project and the cost of the materials are accounted for in the time and material software development pricing model. Contracts like this one provide a great deal of time, scope, and financial flexibility, although early estimates have been established. Payments are paid regularly, such as once a month, for example.

The main benefit is that this software development pricing model enables you to easily adjust the requirements and change the work plan without incurring any high costs. This pricing model is an ideal fit for software development teams using current agile approaches (such as the Scrum methodology.)

Furthermore, you’ll be able to track the progress of the team during the whole development process. In this way, you have a better chance of obtaining exactly what you’ve been looking for.

When to use a time and material software development pricing model?

• You have a hard time figuring out the final specifications of your product at the outset.
• You’d want to get started on development as soon as possible.
• You’re hoping to have a say in how big the project will be and how much money you’ll be able to spend.
• In order to ensure its success, you wish to be an actively involved product owner who has a significant impact on the development of the application. 
• Project specs and requirements are constantly evolving.
• You don’t have a set deadline for the project.
• It will take more than a stated number of months to develop your product. .

What do you pay for?

In this software development pricing model, you pay for the real time the team spends on particular tasks and the cost of everything they use to deliver your product in this pricing model (e.g., access to a specific tool).

Another variation of the time and material pricing model for software development is:

2. a) The milestone pricing model

The scope, price, and time frame of the project are all flexible and adjustable. For example, the client gets invoiced after the service provider has completed the task in a certain time frame, accomplishing an agreed-upon milestone. Good news: You have to pay for basic features and approve each milestone before work can proceed in this model.

When should you use a milestone software development pricing model?

• You have a solid working relationship with the service provider.
• There’s an established relationship with the provider that reduces both time and the risk of disputes by streamlining the acceptance process.

What do you pay for?

You pay for the development of certain features within a previously set milestone in this model. The amount directly reflects the time invested by the provider’s team in achieving a certain goal.

3. Dedicated team software development pricing model

For a dedicated team, you pay for the time the team members spend working for you. Management of your work is your responsibility. The pricing is based on the hourly rates of the specialized team’s developers. It includes the monthly wages of all employees recruited, plus additional administrative costs.

Using this software development pricing model, you have a great deal of control over the team and can manage them, such as determining the workload. You also receive the privilege to pick your team members from a list of possible candidates provided by the service provider.

This model is comparable to forming an in-house team, except that you can increase or decrease the number of team members. For one thing, you don’t have to hire people and spend money on things like vacations and workspaces for them. As a result, you can flexibly increase or decrease the size of your team over time.

What do you pay for?

For a dedicated team, the monthly salary for each employee is included, as well as additional fees for administrative purposes (called the “management fee”). Monthly payments are the standard. The contract should specify the salary and the fee. You’ll know the monthly cost of your project based on the team’s makeup.

This software development pricing model comes in three variants:

3. a) Offsite dedicated team software development pricing model

In the offsite model, the team works on the premises of the provider, and it is common for the development team to be based in another country.

When should you use an offsite dedicated team software development pricing model?

Same as the dedicated team price model, but with the addition of:

• You’re planning a long-term project with unclear requirements.
• For a large in-house project, you’re looking for a solution that doesn’t require hiring full-time employees.
• You’re OK with the fact that you’ll be managing the team remotely.
• Process management is a skill that you have, or you have a team member responsible for it.

What do you pay for?

Same as the dedicated team software development pricing model.

3. b) Onsite dedicated team pricing model

The development team collaborates closely with the rest of your in-house team members on your premises.

When to use an onsite dedicated team software development pricing model:

• You want to start a long-term project with unclear requirements.
• Your company has a large in-house project, and you’d want to boost your internal team, but you don’t want to recruit additional full-time employees.
• Face-to-face contact is vital to you, and you want to work with the team in the same place.

What do you pay for?

The price plan is similar to that of a dedicated team software development pricing model.

In the dedicated team models, the team may have a project manager assigned to it by the service provider. This individual will report to you or the person in charge of the project at your company. It all comes down to the terms you agree to.

3. c) Outstaffing contract pricing model

Hire a team from an outstaffing service to work on your project at either your office or the provider’s.

An outstaffing provider identifies the team members you need based on the number and qualifications of the team members you specify. Teamwork is similar to an in-house team, except that the provider takes care of administrative duties.

This software development pricing model closely resembles the dedicated team model. Here, you don’t use a software agency to find developers but rather an outstaffing provider.

Note: If you assign the duty of recruiting engineers to a software development business, the team may develop a set of methods and workflows that may be used for your project to increase team member productivity. This isn’t something you’ll often find with an outstaffing service.

When should you use an outstaffing contract software development pricing model?

• You’re about to embark on a major project with unclear requirements.
• This means that you’re prepared to manage your team and assign duties to team members.
• An outstaffing service may avoid the need to look for a software house; instead, you may choose to employ their services.
• You have a large internal project and want to strengthen your internal team to produce a great product—but you don’t want to recruit more full-time professionals.

What do you pay for?

It is no different from a dedicated team software development pricing structure.

Wrapping things up: how to choose the right pricing model for software development?

There are pros and cons to each of the pricing models mentioned. It’s up to you to make the final choice based on the requirements of both your project and your business.

These are the most important considerations:

• The complexity of your project
• How many employees would you want to get on board?
• Your budget?
• Duration of the project
• What level of control do you expect to have over the team?

Fixed-price models and their variants aren’t worth considering for long-term projects. 

Treinetic’s Thoughts on Software Development Pricing Models

Because we mostly work on long-term projects, we often employ time and material software development pricing models. Our years of expertise in the industry have convinced us that this contract is the best option for developing mobile and web applications.

Are you looking for an award-winning team of experts that can help you get your idea off the ground? Get in touch with one of our experts now. We assist businesses like yours in determining the most appropriate software development pricing and cooperation models for their needs.

As the year 2021 draws to a close, let’s take a look at the vast world of mobile apps. The yearly app income has reportedly surpassed $111 billion, according to Business of Apps. Furthermore, Transparency Market Research predicts that enterprise mobility will be valued at $510.39 billion by 2022. The number of apps available on Google Play and Apple’s App Store has also increased dramatically. Not only that, but numerous new trends are emerging in the mobile app development process.

Many companies are trying to capitalize on this development trend, but very few can build a profitable app. Only if your company has a well-honed mobile app development process will it succeed in these growth predictions’ competitive landscape.

It is essential to have a process flow for app development that includes several distinct stages. Each one will be examined in detail in this post.

Mobile App Development Process – Step by Step Review

Step 1: Explore Your App Idea

Every mobile app development process begins with a concept, despite how obvious it may seem. Having a clear vision for an application takes a lot of time spent on research. 

Do you have a firm grasp of your app concept? If that’s the case, you’re ready to go on to the next stage. If you’re still unsure, ask yourself the following five questions:

1. Is there a specific objective you’re trying to achieve with your app?
2. What issues do you want to address with your app?
3. Who is the intended audience for this project?
4. What makes your application stand out from the rest?
5. How long do you expect users to use your app for?

You’ll be ready to develop your app strategy and carry out market research following the steps mentioned above. Preparing for a mobile app strategy requires the same amount of thought as going on a vacation.

You’ll need to perform a lot of market research, select the best options for your app, and then map up a timeline and budget for it. Learn about your target market’s challenges and current market developments. After that, your application must provide a solution to the issues the user is experiencing.

Analyze and consider the advantages that your product provides for both you and your clients. In other words, research the market to discover a lucrative niche.

Step 2: Build Your Strategy

Even though it may seem feasible to go right into app development without doing all of the necessary market research, it’s better to take your time and understand the big picture first. You may believe that your concept is unique and that no one else has ever thought of it. Simple Google searches, on the other hand, may leave you disappointed and provide you with many better options from prospective rivals. However, this may be a hint of good things to come. And this is because having a solid group of rivals will help: 

• Educate you on your own niche’s app market landscape.
• Show your mobile app’s interest to prospective consumers

This enables you to study your competitor’s apps and learn from your “rival” by studying how they execute certain ideas and answer user needs. Therefore, you’ll be able to learn about the market, pick out the best of it, and improve it.

If you’re looking into the mobile app development process, there are a few places you may not think to look. But they can offer you the greatest possible input on your upcoming mobile app:

Google Play and iOs app stores: Your best bet will be to look at the two most popular marketplaces for mobile apps to get a sense of app demand and popularity.

Kickstarter: With over a million projects already funded on Kickstarter, it’s easy to see what people want.

Step 3: NDA Signing

Online or offline, security is paramount for any business. You should thus sign an NDA with the right development company you want to employ before starting your mobile app development.

Before beginning development, the majority of the best app development firms have their clients sign an NDA. The NDA includes all information about your application development, and the company must furnish you with everything included in the NDA.

There are a few things you should keep in mind while drafting an NDA, and we’ve included them below to help you understand better:

• The names of the individuals or organizations that signed the contract.
• The length of time the project will take to complete.
• In this case, it’s classified as confidential information.
• Are there any confidentiality exclusions?
• The project idea remains secure.
• A declaration about the proper handling of confidential information.
• Defining the project’s scope, method of communication, application features, technology stack, references/annexures, delivery phase milestones, scrum meetings, and file sharing, among other things.

Step 4 of the Mobile App Development Process: UI/UX Design

The design of an app strives to provide a smooth and easy user experience with a professional look. User adoption and usage of all the features of a mobile app determine its success or failure. Providing great user experiences and making your app engaging, intuitive, and user-friendly are the prime aims of mobile app UI/UX design.

While a well-designed user interface may aid in early adoption, your application must have a smart user experience to keep consumers interested. Users expect smooth and easy app experiences and an attractive visual design when they use an app.

Information Architecture & Workflows

If you want to build a successful app, you must first determine what data it will provide to its users and what data it will collect. Moreover, you must determine how users will interact with it.  

Mobile enterprise solutions for companies include users with various responsibilities and rights, and it is important to include these rules as part of the information architecture of your app. It is possible to see all of a user’s interactions with the app by using workflow diagrams.

Wireframes

Sketches on paper are commonplace for mobile app designers to begin the design process. A wireframe is a digital representation of a sketch. You may also call wireframes “low-fidelity mockups” since they help you visualize the functionality of your application.

The design and user experience are more important in wireframes than color schemes and styles. Iterating via wireframes throughout the design review process is a fast and cost-effective way to develop app layouts. When designing wireframes, keep in mind the device-specific aspects of the final product. If you have an iPhone, iPad, Android phone, or tablet app, it will offer a device-specific user experience that is easy to use.

Style Guide

Style guides serve as “living documents,” documenting everything from your company’s branding guidelines to the app’s navigation symbols when it comes to app design.

Among the things you’ll find in a style guide are:

• Do you plan on using a certain font family for the text in your app?
• What color scheme do you have in mind?
• What role will your company’s logo play in the app’s design?

Style guidelines help with the design approach of an app. Having a style guide in place from the start of your mobile app development process helps your developers work more efficiently. On the other hand, following a style guide will assist in maintaining the uniformity of your app’s look and feel. As part of your app design, you should examine Apple’s standards for iOS applications and Google’s guidelines for Android applications.

Mockups

These are the ultimate visual representations of your app’s visual design, often known as mockups or high-fidelity designs. Wireframes are used to generate mockups, which are then styled according to your style guide. Your app’s design will continue to evolve as it nears completion. Therefore,  anticipate changes to the workflow, information architecture, and aesthetics. The most common tool for generating high-fidelity mockups is Adobe Photoshop.

Prototype

Prototypes help replicate the end user’s experience and the app’s workflows. Prototyping takes time, but it’s well worth it since it allows you to test your app’s design and function early. Prototypes are useful tools for spotting potential changes to an app’s functionality.

During the wireframing stage, certain businesses prefer prototyping, particularly when the functional requirements of an app are not fully thought out. Alternatively, a focus group needs to examine the app’s planned functionality.

Step 5: Mobile App Development

This stage of mobile app development is still heavily reliant on planning. Before you begin any real development or programming work, you must first complete the following steps:

• Decide on a technological framework
• Choose a set of technologies
• Set development milestones and stick to them
• Backend/server technology, APIs, and the mobile app front-end are the three main components of a typical mobile app project.

Back-End/Server Technology

This part includes server-side objects and databases required to support the functionality of your mobile application. If you are modifying an existing backend platform to support mobile functionality, changes may be necessary.

API

An API is a way for an app to communicate with a backend server. 

The Front-End of a Mobile Application

In the front-end, an end-user sees and interacts with the native mobile app. Mobile applications are interactive user experiences that manage data through an API to communicate with a backend in most scenarios. Some apps employ local data storage when they need to enable users to operate without an internet connection.

Step 6: Testing the App

Stability, usability, and security are improved with extensive quality assurance (QA) testing done throughout the mobile app development process. It would help if you first created test cases that covered all areas of app testing to guarantee thorough QA testing of your app.

Test cases drive mobile app testing in the same way that use cases drive mobile app development. In software testing, test cases guide the execution of tests, document the testing results, and monitor the outcomes of subsequent retesting. Getting your QA team involved in the analysis and design phases is an excellent practice. An understanding of the functional requirements and goals of your app will aid in creating realistic test scenarios.

Your app should go through the following testing procedures to provide high-quality and reliable solutions.

User Experience Testing

The final implementation must reflect the app design team’s user experience for mobile app testing to be successful. Your app’s visuals, process, and interaction will all impact how your customers perceive it when they download it for the first time. The fonts, style treatments, and color schemes in your app should all be the same, as should the padding between data and the icon design and navigation. If your application follows the original design principles, users will be more likely to adopt it.

Functional Testing

The success of your mobile app is directly related to the precision with which it performs its functions. Many users should test your app’s functioning to cover as many different testing circumstances as possible. And this is because it’s impossible to anticipate every end user’s behavior and use scenarios in advance. One way to discover problems is to have two people test the identical functionality and report back with their findings that are drastically different. Both users may, for example, complete the same form but input different data, which leads to the discovery of a flaw.

Performance Testing

The performance of your app may be evaluated quantitatively using a wide range of parameters:

• In what ways does your app meet or exceed the expectations of its users?
• What is the speed of the app’s screen load?
• How much does your app use battery and memory?
• Is your app making effective use of the available network bandwidth?
• Is your app using up more space than it should?

Use a load simulator to simulate the maximum number of concurrent users once your app meets the fundamental performance requirements. Your app must be able to withstand high use and still function properly.

Testing for Security Vulnerabilities

Mobile business applications are very concerned about security. A hacker may exploit any weakness to get access to your personal information. Many businesses contract with third-party security testing firms to ensure the security of their applications. A few easy steps taken by your QA and development teams may help protect your application.

Testing of Devices and Platforms

Every 12 months, new mobile devices with updated hardware, software, and designs hit the market. There are frequent updates to mobile operating systems. Many mobile device makers utilize Android as a base, but they modify it to work with their own devices (since Android is open source). The devices come in various forms and sizes.

Step 7: Deployment & Support

App marketplaces such as the Apple App Store and Google Play accept native mobile applications only if submitted for review. Before launching your mobile app, you’ll need an Apple Developer Account or a Google Play Store Account.

The publication of an app in the app store necessitates the preparation of metadata, which includes the following:

• The title of your app
• Description
• Category
• Keywords
• The Launch Icon
• Screenshots taken from the Apple App Store

The review process for iOS applications begins after they are submitted to the Apple App Store and may take anywhere from a few days to several weeks, depending on the quality of your app and how closely you adhere to Apple’s iOS development standards. Apple needs a test user account as part of the release process if your application requires users to log in.

When you submit an Android app to the Google Play Store, it can take up to 3-7 days for approval. 

Once your app is out in the app stores, use mobile analytics tools to keep tabs on users and measure Key Performance Indicators (KPIs) to determine how successful it has been. Always keep an eye out for crash reports and other problems that users have brought to your attention.

Conclusion

After the first launch, app development will continue as you incorporate input from users and add new features. Treinetic is an award-winning mobile app development company. Over the years, we’ve worked with a wide range of businesses to build mobile apps.

We go through the same comprehensive mobile app development process to ensure consistency across all of our mobile applications. If you follow this enterprise mobile app development process, your app will have a successful launch. What questions do you have now that you’ve learned about the mobile app development process?

Please get in touch with us if you have any thoughts or suggestions. And reach us if you’d like to talk about your app development plans.

Today’s article will discuss the advantages and disadvantages of time and material vs. fixed-price contracts, as well as their practical use in software development. Why? Because early outsourcing agreements were typically based on a fixed price model, another prevalent business model, time-and-materials, is also widely utilized. Choosing the best price contract may be a difficult task. And this is because it should be compatible with your company’s operational procedures, contractual needs, goals, etc.

Fixed-priced and time and materials are the most popular and time-tested software development pricing methods. It’s worth mentioning, though, that today’s businesses use hybrids and combinations of their own. Because software development isn’t cheap, budget is one of the most important considerations. Startups and small businesses who wish to invest in an app are searching for ways to save money wherever they can. Therefore, let’s see what we can find out. Which is better for your project: time and material vs. fixed price?

Time and Material VS. Fixed Price – the Differences

We must first define the features before we can compare time and material vs. fixed price contracts.

Time and Material contract (T&M)

This is the best approach to calculate how much time and resources the project will take. It’s especially useful when we can’t foresee whether or not the project will change over time or when we think it will.

When establishing an hourly cost for software development services, the Time and Materials contract analyzes several variables. And this may include things like each project participant’s compensation or the time and money spent on face-to-face meetings. It’s important to note that this contract covers project management, communication with the development team, and other tasks related to the product’s development and implementation.

When should you utilize the T&M pricing contract?

• Projects with a long timeline and changing needs
• The project’s scope is yet unknown.
• You want the freedom to change the scope or the workloads.

Fixed Price contract

As the name suggests, a fixed-price contract is an agreement in which the cost is unaffected by the usage of resources or the amount of time spent on the project. The client has to pay one fee to get the product. It’s a straightforward setup that reduces paperwork and negotiating time. Therefore, the fixed-price contract is the inverse of the T&M contract.

Based on their previous experience with comparable projects, the vendor sets the pricing. This may be a trap since each product is unique, making it difficult to estimate the precise amount of time and resources required. However, if the app, website, or other software has comparable characteristics to the developers’ previous work, they can typically offer a reasonable amount of money for the customer to pay.

When should you utilize a fixed-price contract:

• Specific criteria and deadlines
• Budget constraints or a restricted budget
• MVPs
• Small projects with a restricted scope of work

As can be seen, these two kinds of contracts are opposed. Time and material vs. fixed price contracts provide varying degrees of flexibility and are appropriate for a variety of needs. Now we can take a deeper look at who may profit from each pricing plan, as well as its advantages and disadvantages.

The Benefits and Drawbacks of a Time and Material Contract

This is Treinetic’s recommended pricing strategy. We welcome it since it addresses the client’s requirements as well as the budget. T&M provides you with a specialized team of experts that may be tailored to your specific needs. There is no issue with altering the course of your project and requires a new skill set or more programmers for whatever reason.

Pro: Better control over the project

The time and materials pricing approach is popular in Agile development because it allows the client to participate. This typically includes sprints, iterations, and frequent meetings to discuss progress and future actions.

Pro: Extreme adaptability to changing needs

The Time and Materials model allows for modifications and adjustments to the production process. If the client has a budget, adding, eliminating, and enhancing each feature to get the intended impact is not an issue.

Pro: A quicker project start and a more dynamic decision-making process

The project’s early launch will help a large number of entrepreneurs. They should also make choices while the development process is still in progress. This allows them to adapt to the requirements and pains of their target audience, which may change at any time.

Con: Uncertainty for the timeline

As this kind of contract is extremely flexible, disadvantages and problems may arise. The deadline may become a distant date in the indefinite future if we lose control of the project.

Cons: Less budgetary control

Work that is not constrained by a strict plan and timetable, as with a Fixed Price contract, implies that we may wind up paying considerably more than we intended. A solution to this problem would be to apply common sense and only request additional features to help our company. When calculating expenses, keep in mind that developers in different regions charge varying rates, as Statista demonstrates.

Con: The need to be much more involved

Time and Materials may not be ideal if the clients do not want to be a part of the team. It necessitates their presence and, in many cases, active involvement.

The Pros and Cons of a Fixed-Price Contract

Pro: Being certain about the cost

This price arrangement provides both parties with consistency, which may be advantageous for startups or small businesses with a flexible budget. They pay the agreed-upon amount and don’t have to worry about anything else. That may be risky for the software development company, but they receive some pay upfront, so it’s a win-win situation. However, if anything changes while they’re working on a project and need additional money, they won’t obtain it unless their client is willing to negotiate.

Pro: Established deadlines

Fixed-price contracts require careful preparation; every element must be taken into account when estimating prices. This method makes predicting how much work the project will take and when completed much simpler. This is critical for all clients who care about time-to-market.

Pro: No need to control the process

Clients who do not wish to be overly engaged in the work process may benefit from a Fixed Price contract. The first planning step provides a clear path for the development team to follow. The client does not need to have as much control over what is going on and may concentrate on other business operations.

Con: Longer preparations

According to GoodFirms, the average time to produce bespoke software is 4.5 months. However, as previously said, much preparation is needed to determine the most accurate pricing for the developed software. But when it comes to short deadlines, this may be a disadvantage. Even so, we may not be able to prevent certain communication misunderstandings while the project is continuing.

Con: Higher cost of the project

Because there will be no budget adjustments throughout the project, the software development firm must anticipate all possibilities and be prepared. To minimize risks, the price under the Fixed Price model should contain a reserve.

Con: Worse response to changing conditions

If the market scenario unexpectedly changes, the only option for modifications is within the budget, which may be limited given the previously stated strategy. Furthermore, if the client has an idea that would be far more useful to the company, it may be impossible to implement it under a Fixed Price contract.

Which Should I Choose: Fixed Price or Time and Material?

Both kinds of collaboration models have upsides and downsides. Therefore, they are best suited to certain projects. A Fixed-Price contract is a suitable choice if you have a small project with clear instructions or are certain that no modifications will be required. You will be aware of the project’s cost in advance, and your product will be produced on time. However, it would be best if you were prepared for unforeseen problems or mistakes that may cause you to miss the deadline, incur extra expenses, or leave you with an incomplete project.

A Time and Material contract might be a preferable option for bigger or longer-term projects. It provides product development freedom and control while also assisting you in staying under budget. However, since there is no exact end price or deadline date, you must keep track of the expenses and the project’s progress. T&M also requires regular communication between your team and the developers, so you’ll be spending a lot of time in meetings. Please get in touch with us if you are having difficulty selecting the appropriate model for your project. We can help you.

From concept to full-scale development, the detailed vision is critical to making the app the next great success. The app development will be outsourced, or the stakeholders will fundraise. But it isn’t easy to communicate the unique app concept to the development firm without a written product requirements document (PRD). 

It should be no surprise that you can get the developers to build the app or persuade the stakeholders to invest with a verbal description of the idea. Nevertheless, the final result will never be the same as you imagined. Finally, time, money, and effort will be squandered since little information is given during the app concept description. 

Clear, concise, and accurate app concept documentation may help prevent such misunderstandings and outcomes. In addition, you may be aware of the importance of creating a one-of-a-kind app in today’s world. That’s because, according to app use statistics from Web Builder Org, there were more than 250 million daily app downloads between 2019 and 2020. As such, there is both high demand and a high level of competitiveness.

What Exactly is a Product Requirement Document?

The product requirement documentation is a critical component of the app development process. And that’s because it specifies the features, functions, and requirements for each development phase. It’s a set of guidelines for developers and designers to follow to execute things consistently. The comprehensive picture of the eventual product assists in determining the time, money, and resources required. Also, it’s important to establish effective communication throughout the project and to avoid possible risks.

Documentation is a continuous process that iterates as the project progresses rather than a one-time action. It’s a great method to demonstrate a solution to any issue while never causing the team to make erroneous assumptions.

Why Should You Create a Product Requirement Document?

You’ll need a team of developers to convert your concept into a shippable mobile app. Finding the right team isn’t the difficult part. The difficult aspect is presenting your mobile app idea to developers so that they see it in the same way you do. Furthermore, according to Boehm’s study, rework may cost between 40% and 50% of the overall cost of all software development. And requirements mistakes account for a large portion of rework. A PRD can avoid such mistakes to a greater extent. 

Producing a mobile application product requirements document enables you to ease communication with other stakeholders. Don’t be afraid to spend time in product requirements engineering since the potential return is obvious.

Other reasons to write a PRD are as follows:

• Increase your own self-assurance.
• Check that the finished app satisfies your quality standards.
• Limit scope creeps.
• Spend less money.
• Make your thoughts known to developers.
• Rapid development and delivery are available.

What are the Product Requirement Document’s Key Points?

Goals and objectives

The product you want to build, the issue it will address, the fundamental features that will solve significant difficulties, and the individual who will gain the most from the product, in general, are all described in this part. It is just a concise and high-level explanation of the application’s concept that provides the development team with a thorough knowledge of the product.

Personas for Users

The developers may design the product through the eyes of the intended consumers. And this reduces the chance of the app rejected by the target user base. It is beneficial to explain the target audience and how the mobile application will meet their requirements.

Functional requirements

Every product requirement document’s core contains a list of all the features included in the product. The comprehensive description contains a map of all the functions distributed over several screens. It also has a priority system that keeps developers and businesses on the same page. It’s also essential to describe the initial set of features and the features that need introducing soon. And this is because it enables product scalability and the replacement of the specified features is a breeze.

User stories

User stories are high-level interactions between end-users and the product that should be depicted to provide developers with an understanding of the technical requirements and help them build a compelling business case. Can you see how? User stories provide mobile app developers with a description of a feature from the viewpoint of the end-user. Therefore, this aids in the creation of the finest content architecture and design. Excellent interface design and user experience may be created.

Sitemap

This document component illustrates a complete list of all the screens that will include different functions. Also, it illustrates the screen flow that will facilitate navigation. The sitemap assists in properly mapping all of the screens. And this is necessary to ensure that the hierarchy between related pages never makes the connection between mobile app screens unclear. Finding superfluous components and user problems becomes a breeze when developing the product’s systematic structure.

Technical specifications

The developers will better understand the technical knowledge needed by the project thanks to the clear description of the technology and technical elements underlying the product being produced and its capabilities. When describing the technical specs of the product, try to be as concise as possible. However, if you are uncertain about complicated technological issues, developers can assist you. So be open to developers’ ideas and criticism.

Wireframes

Another approach to graphically define the app’s product needs is to create wireframes. The wireframes are an additional tool that informs developers on:

1) How will the screens be linked?

2) What and how will features go in?

3) The app’s behavior when a new screen is accessed and its effect on the user experience.

It provides a clear picture of the app’s UI, allowing for wireframes by hand.

Maintain presumptions

All of the expectations for the product’s success need establishing under the assumptions. They are defined in terms of the market niche’s knowledge, expertise, and experience and the target users’ knowledge, expertise, and experience. Presumptions primarily comprise assumptions about users, business, and technological resources.

Provide constraints

Trends change quickly. Therefore, it may be detrimental to the app if you fail to release an app with critical functionality in the market at the appropriate time. You must guarantee that the app does not miss a major hit. Thus, it’s necessary to establish time, resource, and budget limitations to ensure that the app is developed within the scope and budget specified within the given timeframe. Furthermore, the quality criteria and risk considerations may help the development team deal with problems appropriately.

Considerations for Your Product Requirements Document

You must keep some critical factors in mind while creating your product requirements document. To begin, it is critical to draw on the diverse experiences and perspectives of different team members. Collecting this information will aid in the development of detailed definitions for the various parts of the PRD template.

Second, when you fill out the PRD form, make your answers and definitions for each defined area as high-level as possible. While particular criteria may seem apparent to you, others reading the paper may have a completely different viewpoint. By removing industry-specific terminology, the paper will be easier to comprehend for everyone. As the product develops and needs change, it is critical to ensure that everyone understands what you convey.

Treinetic Can Help You to Make Your App Concept a Reality 

Creating a mobile app requirements document’s ultimate aim is to provide the groundwork for a successful product. Make sure you map out every business and technical need. Also, explain all dependencies, restrictions, and assumptions to give your team the firepower it needs to get your project off the ground. Even with the most comprehensive product requirements document, questions are likely to arise throughout development.

It is critical to constantly concentrate on providing better value to the marketplace while defining the product. It’s easy to get sidetracked by rivals, agitated consumers, and architectural problems. While you must understand those requirements, try to keep the value in mind while developing a fantastic product. Don’t be concerned if these theories seem to be too complex for you. We can help you with all critical steps as an award-winning software engineering firm.

Why should you employ a dedicated software development team? That’s because the business world is changing faster than ever before as a result of new technology. This transformation has fundamentally altered the way businesses operate at all levels. The big race for an ever-increasing number of businesses vying with one another is to embrace new technology. Hiring a dedicated development team is becoming an effective way of dealing with this.

It is increasingly difficult to rely on an in-house IT staff to research, adapt, and create new technologies. In particular, in a world of rapidly expanding, readily available technology. It may also be difficult and wasteful to recruit new employees whenever new gear or software is introduced into the process. This is a situation in which employee outsourcing may be advantageous.

What Is a Dedicated Software Development Team?

A dedicated software development team is a long-term collaboration model with an outsourced team of developers in which a business and a developers’ team cooperate. This is a very common mode of collaboration, on a level with fixed pricing (FP) and time and material (T&M) models. 

If you opt to set up a dedicated development team, you will have a team of experts that have been hand-picked to work exclusively on your business goals. This team is similar to an in-house team in that they are officially your employees. However, unlike workers, you do not have a specialized staff to deal with administrative, human resources, tax, and social benefits problems. Instead, you may concentrate on higher-level business problems while your development partners handle the rest.

To summarize, a dedicated team model offers you a hand-picked expert team that is only focused on completing a single project. Furthermore, all administrative costs are on their side.

How Much Does It Cost to Hire a Dedicated Development Team?

 It isn’t easy to give exact figures here. But as per Deloitte’s 2020 Global Outsourcing Survey, the main motivation for outsourcing is to save money (up to 70%.) The price strategy for a dedicated team is straightforward. Since you hired a team, each person has a set hourly rate, and you only pay for the hours performed. This is the only item you have to pay for. There are no additional costs for renting an office for a team, purchasing equipment, paying taxes, paying energy bills, and so forth.

Who Is In A Dedicated Software Development Team?

Your company’s needs determine the makeup of your team. Therefore, your development team might include:

• DevOps engineers
• Quality assurance specialists
• Business analysts
• Front-end and back-end developers, full-stack engineers, mobile developers
•  UX/UI designers
• Product managers
• Project managers

Signs You Should Hire a Dedicated Team

The dedicated software development team approach is perfect for complicated long-term projects that can grow in the future. A professional development team is a good option when your concept lacks the product-market fit and requires a discovery stage.

Startups in their Early Stages

If you’re a startup in its early stages, you’re expected to expand. In this scenario, opting for a dedicated team is a wise decision. This method will easily create a team, save money on recruiting, and develop better products. While your in-house staff is free to focus on business-related activities, the augmented team handles the extra work.

Projects with Uncertain Requirements

A specialized team is a way to go when your concept lacks a product-market fit and requires a discovery stage. Because the discovery stage establishes the foundation for the project’s whole development process, it may take months of testing and interviews to resolve ultimately. The dedicated team approach gives you the time and resources you need to concentrate on the discovery stage without worrying about overpaying.

Long-Term Projects

The dedicated team model is appropriate for complicated long-term projects with the capacity to grow. To fully understand the potential of your project, you’ll need a strong team of developers to help you along the way. You may be certain that the individuals you begin working with will see the project through to completion if you work with a committed team.

In addition, let’s take a brief look at technological behemoths like WhatsApp. They requested the assistance of a dedicated team of developers to assist them in building the iOS app. Apple, Oracle, American Express, IBM, Verizon, Amazon, Doist, Automatic, Buffer, and 10up are among the businesses that use the dedicated team strategy.

How Can Dedicated Software Development Teams Assist Businesses in Growing?

CRM software, which focuses on monitoring and enhancing company interactions with existing and prospective consumers, is projected to generate more than $43 billion in sales by 2021, according to Statista. These are all huge numbers, and they indicate that you can do well with software development. As such, you will need a dedicated software development team to assist you in growing your company.

Increased Productivity Will Help You Grow Your Business

Because of the fast-paced nature of the software development industry, productivity and speed of work are more important than ever. Having these variables optimized at all times may offer your business a competitive advantage. Hiring specialist development teams may assist you in optimizing these elements of your work.

It can save time and money by outsourcing project components to a competent, specialized software development team. These same developers will be accustomed to working in this outsourced manner, eliminating the need for time-consuming adaptation. They already can adapt to a client’s requirements built into their processes.

These outsourced teams often collaborate on comparable projects. When you employ a dedicated development team, you also receive expertise working fluid, effective, and dynamic teams. This is a critical advantage that you wouldn’t easily or promptly when recruiting conventionally.

Control Over the Project Will Help You Grow Your Business

The benefit of this outsourcing approach is that you maintain complete control over the project. As a client, you may participate in as little of the process as it fits your needs. For example, you might employ a dedicated development team and delegate project management to them. Or, you may employ them and work directly with the team to accomplish your objectives in a more hands-on manner.

These advantages stem from the nature of this outsourcing strategy. You have the freedom to choose the team that is most suited to your project based on the developers’ abilities. Then you always have the option of adding additional team members, taking advantage of a large pool of expertise. A superior team leads to increased business growth in a variety of ways.

No Hardware/Software Requirement

Typically, a business will need to spend significant money establishing workspaces, collecting digital resources, and recruiting the smartest personnel while developing software. This may include both large expenditures, such as office space, and minor ones, such as buying the appropriate software to work with.

However, if you hire a dedicated team, you will not suffer these extra expenses. These teams have already set up their workstations and gathered their resources. You are just paying for their time and skills. You may reinvest all of these extra costs into the expansion of your business. And this is one of the most significant benefits of hiring a dedicated software development team.

Flexibility

The benefits of assembling a dedicated team of developers cannot be emphasized. Because they only concentrate on one project at a time, they can devote their whole attention to it, allowing you to work on other tasks. This adaptability is essential not just for small businesses but also for bigger corporations. The additional degree of team management and control given to a business is a significant benefit.

This implies that if you need to make adjustments or alterations while the job is being done, inform the team, and they will modify and adapt.

Faster to Market

Hiring a team of experts who have been working together for a long time relieves you from the agony of early attrition that freshers experience before gelling. The team members’ familiarity determines the ability to skip the learning curve and come up to speed faster.

A Harvard Business Report has scientifically shown that even a 50% increase in software developers’ team familiarity lowers coding errors by 19% and the budget by 30%.

Your Business Can Win with a Dedicated Development Team Help

In a nutshell, yes. Hiring a dedicated software development team offers much more benefits than drawbacks. You may benefit from these outsourced experts’ knowledge, skills, and experience. You may also save a lot of money using this outsourcing approach since you won’t have to pay for onboarding or legal fees, typically connected with employing new employees. And all of these benefits contribute to the growth of your business in many ways.

Why not employ a dedicated software development team now that you know how they can help your business grow? However, it is important to note that the team’s competency you choose has a significant impact on business growth. This is when Treinetic, an award-winning software engineering company, comes in useful.