Our Pricing and Collaboration Models

The right collaboration and pricing approach is one of the important things for successful software development process. ABTO Software as a software development outsourcing services company is truly flexible in this respect allowing its customers to choose the pricing and collaboration model which suits their business requirements best and enables best meeting time schedule, budget, scope, and software quality.

ABTO Software applies various price models while cooperating with its customers, e.g.

  • Time and Materials (T&M), also called “Effort based Pricing Model”
  • Dedicated Team (DTM), or “Office/Team Extension”, or “Milestone Model”
  • Fixed Price (FPM), also known as Project Base Pricing Model

Most of our customers find the “Dedicated Team” model most advantageous for them as it helps them reach optimized Return on Investment (ROI) from investments in their development efforts. Though we understand that some of our pricing models are more appropriate for maintenance or support work; the other payment structures are beneficial for long-term projects or changing business objectives. However, there are some features common for practically all collaboration models that we offer our customers.

Common features for all collaboration models we offer:

First, we use Scrum as a development/managing methodology since we consider it the most effective interactive agile framework for managing software projects and software application development. Scrum is built on the principles of time-management and involvement of all participants with their certain roles. We highly recommend this approach to our customers as it provides numerous benefits, like:

  1. Quick response to changes, while minimizing risk
  2. Increase return on investment and throughput of business value
  3. Possibility of continuous improvement and predicting the result of work iteration
  4. Visibility of progress, functionality, team, problems

Second, we have our own great in-house developed management and reporting tool, an Agile Project Management (APM) System, built to streamline all company’s Scrum processes while managing a project, including creating, editing, tracking and analyzing tasks for operational activities, project planning, working time reporting, payroll administration, financial transactions and workload management.

Salient features and benefits of the most frequently used models we offer:

Time and Materials (T&M) The T&M model is usually used for long-term projects, complex and wide in the kind of development requirements involved, where their scope and specifications are not specified in detail and total effort cannot be estimated in advance.

  • the prices for our resources use, including infrastructure and labor cost, are first agreed between customer and ABTO Software, so the estimates are usually prepared prior to the execution,
  • volumes can increase as much as necessary according to customer’s needs and the scope of work can be changed during the development,
  • the project team members, project managers, equipment and infrastructure are assigned according to customer’s requirements,
  • the team size and project workloads are flexible,
  • in case of a developer idle time, we’ll offer a replacement
  • by means of our APM System customer is able to supervise and control the project’s accomplishment time, budget and deliverables,
  • customer pays a monthly charge based on the total amount of work reported by the team for each month and accepted by the customer.
Dedicated Team (DTM)“Transparent type”& “Non-transparent type” The Dedicated Team model is designed to create a framework ensuring successful long-term relationships. In this case the dedicated team may be allocated on different projects for the same customer.

  • ABTO Software offers 100% dedicated team members working exclusively on the customer’s projects, which allows to focus exclusively on this customer’s needs and provide maximum cost efficiency for its business,
  • customer has the possibility to interview the dedicated team members, manage, control and motivate them,
  • ABTO Software’s experienced dedicated team leaders ensure the most efficient and transparent workflow,
  • customer ensures steady workload for the dedicated team members,
  • both customer and the dedicated team benefit from direct contact and quality control on regular basis owing to using Scrum method,
  • customer pays a fixed monthly fee per developer / team, so this expenditure is always stable,
  • overall costs are significantly lower,
  • ABTO Software offers a flexible engagement contract,
  • within the bounds of working with “transparent dedicated team” the customer is aware of the price structure (salary, taxes, office expenses, management fee),
  • within the bounds of working with “non-transparent dedicated team” the customer is not involved in the additional expenses.
Fixed Price (FPM) The Fixed Price model is usually used for small projects or big projects which are developed in several fixed price stages. It’s ideal for projects with clear and well-defined requirements, scope and structure, or for projects for state institutions requiring fixed annual expenditure.

  • a set amount of project iterations and service volume, within a set period of time, are determined upfront,
  • rates are unimportant in this case, but information about work packages and project stages planned is communicated,
  • the project’s scope, specifications, specific milestones are clearly set up and total effort is estimated in advance,
  • this option is the most low-risk for a customer as the price is pre-agreed, easily budgeted, compared and predicted, though some contingency reserve is still planned for risks mitigation.

ABTO Software’s price and collaboration models’ distinctive features:

Distinct Features / Models T&M Dedicated Team Fixed Price
Interviewing candidates ABTO Software, though possible to discuss Customer ABTO Software
Managing work ABTO Software Customer, though possible to discuss ABTO Software
Customer’s control ★★ ★★★ ★★
Response time Based on availability Immediate Based on availability
“Switch time”1 If necessity arises, it is included into rates Absent Not applicable
Contract length Any Starting from 6 development months Any
Payment type Hourly rate Fixed monthly per team Fixed per project
Risks ★★ ★ Optimal, managed risks ★★★
Cost ★★ ★★★
Benefit ★★ ★★★

★ — Low, ★★ — Medium, ★★★ — High

1 — Unproductive time used by developer to switch from one project to another.

Choose ABTO Software for Outsourcing

Outsourcing your software development projects to ABTO Software you are sure to experience multiple benefits in terms of accuracy of schedule, cost, scope, human resources, quality and profit. Choose any model of collaboration that suits you best and enjoy all the advantages of working with us.

Call, Skype or just use the Contact Us Form to get in touch with us today!