If your organization doesn’t have its own in-house coding team, you need to rely on outside developers. But managing some outside developers could be a challenge, especially managing project costs. So if you outsource your software development, managing your costs should be a top priority. (But don’t forget, you also have to produce a great product!)

But in our experience, the vast majority of custom software development is impossible to predefine completely. The best software products inevitably require flexible thinking, tweaks to requirements, and shifts in scope. And the larger the project, the more changes you can expect.

When software was less complex, fixed-price development was more effective and less risky than it is today. But software complexity has grown exponentially. Today, to be a market leader, your software needs the most user-friendly front end, the best backend functionality, and the most efficient use of AI. The time & materials development process, including the discovery phase, ensures that your product will be the best it can be.

Also, these days, many internal software teams want to engage more deeply in their outsourced development projects. The T&M approach enables more collaborative give-and-take, greater solution flexibility, and ultimately a better product than the traditional fixed-price approach.

Also, these days, many internal software teams want to engage more deeply in their outsourced development projects. The T&M approach enables more collaborative give-and-take, greater solution flexibility, and ultimately a better product than the traditional fixed-price approach.