Engagement models & pricing

First Line offers customers the following primary engagement models:

Project Work

Under this model, we contract to perform a specific scope of application development work based on the customer’s requirements. As a full cycle application development service provider, we can support the customer in all stages of the project lifecycle, including technology research and selection, prototyping, development, testing, deployment and support.

This model is typically employed when the customer is looking to address a specific challenge that is limited in scope and/or in time. Another scenario is using the project model for the first engagement with the new provider, before committing to a longer-term, ongoing business relationship.

Dedicated Offshore Development Center (ODC)

This model works best for clients whose strategic objective is to augment their in-house software development organization using an external partner. Building a dedicated ODC fully integrated with the in-house teams is best suited for firms that have a recurring stream of software development work, e.g. software product vendors, and are ready to make a strategic commitment to outsourcing.

Within First Line, ODCs operate with a high degree of autonomy from the rest of the company, with their dedicated physical space, networks, access, security, etc. We take IPR protection very seriously, and our ODCs routinely pass stringent security audits by our customers.

The ODC approach offers certain advantages:

  • Knowledge retention, sharing and reuse
  • Shorter learning curve for new team members
  • Higher productivity and shorter time-to-market
  • Increased flexible in resource utilization (ramping teams up and down)
Build-Operate-Transfer (BOT)

As an option under an ODC agreement, we offer clients that are ultimately interested in setting up their own captive offshore/nearshore development operation the possibility of transferring the control over the dedicated ODC, after a predefined period of time and on predefined conditions.

Pricing Models

Different pricing models lend themselves to different circumstances. For example, a fixed-price approach works best in a project where the scope is clearly defined and is unlikely to change during implementation. For projects with more fluid requirements, where the customer has to respond to changing market conditions, Time and Materials (T&M) may be a better fit. ODC agreements usually employ some flavor of T&M pricing as well.

First Line offers customers the following pricing models (which can be augmented with additional conditions such as SLAs, Incentive Fees, etc.):

  • Fixed Price
  • Time and Materials (T&M)
  • T&M Not-to-Exceed
  • Cost-Plus
  • Fixed Budget

For more information and to request our standard rate card, please contact us.

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