Software development company
Yumasoft company is specialized providing outsourcing software and web application development. today we are working on providing top-quality and effective offshore software development ideas in .NET (C#), C/C++, Silverlight, SharePoint, ASP.NET, WPF, SCOM, Active Directory, WMI, Flex/ActionScript, PowerShell, ColdFusion.
software development company has been focusing in this area and now we’re focused on up-to-date Offshore Development Center services provide competitive solutions for custom software development that is created for middle and small companies all over the world. offshore software development company works with authoritative reliable partners delivering top-grade and reliable approach with effective communication and cooperation. We offer our clients with premium project management, intellectual property security and best price policy.
www.yumasoft.com: Software development company
it’s believed that within each year the number of IT companies grows and many of the organizations prefer outsourcing some of their work to remote high-quality staff and specialists. it goes without saying that these facilities are really productive and modern to satisfy business’ requirements. IT company can choose to outsource the growth and support of single projects. moreover it may build up its own Offshore Development Center (ODC) that can increase power of the whole company. as you see your company benefits from top-grade solutions and experienced team of skilled practitioners and workers
We offer custom software development and web application development, including offshore software development model
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Hi Peter, It's a nice article and this model can even be implemented but it has one inherent problem – that is of estimating the cost of development upfront.
We had the chance to negotiate an agreement with a client on this model once but the project never saw the light of the day in this model. It was eventually done in standard estimated T&M model. I will share the issues that came up;
Running a project in this model has two costs:
1) Cost of development and upfront hardware requirement
2) Cost of hosting/running the system
As most of the custom software development companies would have experienced, we know the fact that the client is not aware of at least 20% to 30% (or even more) of features when they start developing a project. It's only after a software starts to take shape, they come up with 10 new requirements which accordingly to them were 'obvious'. When we are offering a monthly quote or a per transaction quote for X number of years, as one of the components, we are looking at returns of our estimated upfront investment in developing the software and hardware required to support the software. Estimating the hardware investment is not that tricky but the software part causes the same dilemma as happens in T&M or fixed cost project. Unless requirments are frozen, we can not calculate our upfront software development cost and thus this part of monthly component. Cost of hosting/running can be calculated from previous experiences.
The project we were trying to negotiate in this model fell because of the very fact that client couldn't give sign off on the requirements – in each meeting we could see new requirements seeping in.
We came up with a mix model where in client pays upfront for the requirement analysis – a SRS phase as termed in Waterfall or creating a complete product “backlog” upfront in SCRUM environments. Freezing a complete product backlog upfront is against spirit of SCRUM but this could be kept flexible where in client pays upfront during development for any changes in feature list without disturbing the agreement of monthly model which was decided after the first paid phase. This first phase allows to calculate our investments and give more accurate and less risky quote.
Although we didn't follow this model with client above due to other issues, but this model looks good.
This provides best of both worlds:
1) Software development vendor's upfront cost risk is reduced as requirements are quite clear.
2)Vendor will have all the reasons as you described above in building a better, faster, cost effective and robust solution.
3) Client is making only a small commitment upfront for first phase and he knows that vendor will go to all length and breadth to make sure requirements are captured right at very first stage. Vendor's profit is dependent on how effectively he can manage the initial upfront cost. Finally, client will effectivly get cheaper and better solution without taking headache of running into development and ongoing support issues.
What are your thoughts on the mixed model?
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