Even if some founders continue to have financial concerns about the T&M pricing model, it usually ends up being a more cost-effective, secure, and superior choice—even in terms of product quality. What, then are the factors that make it the better option?
But, it is common to have doubts while putting your money on something. So, let us look at the benefits of the T&M model first and then decide whether or not it is a good option.
You can begin software development momentarily
The first line of code may not even be written by developers for three months when using the fixed-price approach. In some circumstances, final visuals are also prepared as part of preparation because they may be required for front-end estimation.
Preparation also includes developing and approving the product definition, estimation, and appropriate mockups.
All of those activities, including UX, design, and programming, can begin without the need to first generate a fixed-price estimation. It merely requires creating a backlog of jobs that can be ranked in order of importance.
Increased flexibility and influence on the project
Fixed-price contracts’ stringent regulations might make development an extremely formal and static process. Any extra features might necessitate a new estimation, adding time and cost.
In contrast, the T&M model’s development process is ideal for clients that want to be involved actively in the project and offers plenty of room for customization. Especially with different tools, it is totally possible to change the project’s direction, add new features, and revise the end idea when nothing is predetermined at the beginning.
Agility
Agile’s transparency is one of the main reasons why it has been so widely adopted by software development companies and valued by clients. The foundation of agile techniques is the concept of setting partial goals for projects, which are meant to be finished in sprints of typically one or two weeks. A client and the entire team meet at the conclusion of each sprint to discuss the results and share feedback.
The concept centers on ensuring that the project is moving in the proper direction and pursuing continuous improvement. Let’s be honest. The effectiveness with which you address errors is what distinguishes you as a good developer. With this model, you have room to fix errors and make a better product.
Possibility of a better product
Developers are, in reality, bright and creative creatures, and working on a project that is always changing brings out the best in them. Experienced developers can not only complete the project successfully but also use their knowledge to improve it beyond what was originally planned. They have the ideal opportunity to do this, thanks to the T&M concept.
However, with a fixed-priced model, they cannot actually use their skills to try and make a better product. They are limited by the constraints of the agreed-upon specifications.
So, these are the benefits of working with a T&M model. Now, considering these pros, what do you think? Is the T&M model for you?