Outsourcing pricing models explained

Project size plays a big factor, but the pricing model you choose is most important

When bringing a project to Clockers we will always advise you on the best way to present the project and support you in creating any documentation that can help. Our partners will aim to estimate the projects as accurately as possible however different projects have different team requirements that your Outsourcing Specialist will discuss with you.
WHY
PRICES CAN FLUCTUATE
01

One partner may have more experience in a certain area than another, therefore able to confidently analyse the time commitment needed for a task and not need to add much ‘risk’ time.

02

Some outsourcing partners will give a very short estimate 'ballpark' and request a further video call discussion to get whatever further information they require.

WHAT IS ‘RISK’ TIME?

In order to price up a software development project, first our teams need to break it down into individual tasks. Once the tasks are clearly laid out the next job is to go through them all as a team and allocate a time in hours to each task. If there are some ‘unknown obstacles’ that could appear in, a certain amount of ‘risk’ time is added to make sure the team do not drastically underestimate a project.


Outsourcing Vs Outstaffing

Individual task and project pricing only applies if you are looking to outsource one specific project. Should you be looking for an ongoing development team to support you for the foreseeable future, they will discuss fixed monthly prices instead as this outstaffing model works better in this scenario.

​The 3 Pricing Models

TIME & MATERIAL (Outsourcing)

(Most Popular) Commonly known as ‘billed by the hour’. You will be given an hourly rate for each member on your new team and all billing will be based on the hours worked. This is a very popular for early / mid stage startups.

FIXED PRICE (Not Recommended)

(Clockers does not offer this model) While it may sound great, the realities of fixed price work are not so great. Using this model can compromise delivery quality as both parties will be pushing to get it completed quickly, on a tight budget. Software dev projects are nutorious for having unexpected hurdles and fixed price doesn't allow for this.

DEDICATED TEAM (Outstaffing)

Popular for mid / larger tech organisations that are revenue generating or heavily funded and scaling quickly. Here you pay a fixed price per month and have a dedicated team member working remotely for you. This is excellent however costs a lot more than Time and Material.

Our team are more than happy to discuss what you require and suggest the appropriate pricing structure that would work for you.
the very beginning.
we have done this process time and agian know exactly how to set you up for success.
Once you have accepted a bid, we will be in contact to setup an introduction call with your
new team.
All parties involved in the project shall be invited to a dedicated Slack channel to keep communication regular and open.
Every project will have a project manager that will oversee the development process.

Not technical? Don't worry, our Project Manager will guide you through the process no problem. If you are technical, you'll be glad to have someone overseeing the remote team on your behalf, reporting directly to you.
We kick off with a planning meeting and then daily calls to discuss progress are a must!
At the end of every week we review the progress and move forward.