Flexible Pricing Options
Adayze Technologies will work with you to choose the right engagement model at the right price. We offer several flexible pricing options based on project
clarity and the ability to offer a blended onshore and offshore team or dedicated offshore development resources. We will also consider equity positions for our entrepreneurial/early
stage clients, for both advisory and development services.
Fixed Price
This pricing model is best suited for projects where the scope, schedules/requirements and deliverables can be clearly defined before the beginning of the
project. Any changes in scope or schedules/requirements will trigger a re-estimation of the project, its deliverables, and overall cost. In using this pricing model, you can
expect to:
- Limit scope variance, control costs and operate within a specified budget
- Get clear visibility on timelines and milestones
- Reduce your risk and have Adalyze responsible for the project deliverable
- Expect on-time on budget deliveries provided there are no changes to scope
Time and Material
This pricing model is best suited for projects where the scope, schedules/requirements, and deliverables are not completely defined when beginning the project
or are expected to change over the period of the project. This model provides clients with the desired flexibility to manage team sizes and costs as the project progresses in
phases. This approach has several advantages, including the ability to change scope, modify requirements, or adjust the schedule, as well as the flexibility to manage team sizes
and costs as the project progresses in phases. In using this pricing model, you can expect to:
- Ramp up and ramp down team size in synchronization with the market, project and release schedules
- Adapt to evolving requirements
- Get detailed visibility and control over the development process
Dedicated Offshore Development Resources
Adalyze provides dedicated offshore development resources to client, and guarantees resource quality and engagement time. Individual and/or team of offshore
development resources work under complete control of client. Client is billed based on hourly or monthly fixed salary per person per month.
A good question to ask would be: what are my approximate savings by using offshore versus a direct hire? The answer is simple, a lot. Typical employment cost
per U.S. software technologists exceeds $100K per year. Operational overheads, employee benefits package (health insurance, vacation, 401k, bonuses, etc), real state, equipment and
infrastructure expenses make a salary of $60K to result in more than $100K expense. Adalyze’s dedicated offshore staffing model enables you to hire IT technologists at a fraction
of the cost. The average expense for a mid-level developer working in Adalyze’s Offshore Development Center is $50K per year!
The following chart highlights the advantages for using Adalyze’s dedicated offshore development resources versus direct hires during the first year.
|
Junior
Developer |
Mid-Level
Developer |
Senior
Developer |
| Base |
$60,000 |
$80,000 |
$100,000 |
| Headhunter |
$15,000 |
$20,000 |
$25,000 |
| Time Involved |
$2,000 |
$2,000 |
$2,000 |
| Taxes |
$4,500 |
$6,100 |
$7,600 |
| Benefits |
$15,000 |
$20,000 |
$25,000 |
| Space |
$2,000 |
$2,000 |
$2,000 |
| Equipment |
$4,000 |
$4,000 |
$4,000 |
| Bonus |
$3,000 |
$3,000 |
$3,000 |
| Total Direct Costs |
$105,500 |
$137,100 |
$168,600 |
| Adalyze Fees |
$40,000 |
$50,000 |
$60,000 |
| Total Annual Savings |
$65,500 |
$87,100 |
$108,600 |
Flexible Pricing Option Comparison Table
Presented below is a quick comparison table of the fixed price, time and materials and ODC pricing models:
Parameter
|
Fixed Price
|
Time and Material
|
ODC
|
| Work Priority |
Flexible |
Flexible |
Flexible |
| Flexibility of Specs |
Fixed |
Flexible |
Flexible |
| Resource Control |
No control |
Full control |
Full control |
| Cost Control |
Fixed, complete control |
Estimated, controlled by work performed |
Estimated, controlled by work performed (reduced hourly or monthly rates based on offshore resources) |
| Client Payments |
Down payment, % milestone payments |
Monthly payments |
Monthly payments |
| Suitability |
Clearly defined scope, schedules/ requirements and deliverables |
Loosely defined scope, schedules/ requirements and deliverables |
Little or no onsite requirements or onshore expertise, greatest cost savings with a lot flexibility |
| Best For |
Well defined projects |
Project with many unknowns |
Any project wanting lower costs |
Equity Model
Adalyze will consider a cash and equity pricing model, whereas the cash component for project management/other high-level services and development services are
reduced in lieu of an agreed upon equity interest. We typically provide this option only with our entrepreneurial and early stage business clients, where we enter into a long-term
relationship providing both advisory and development services. Adalyze will also consider straight equity (or convertible note) for advisory services on a case-to-case basis.
Maintenance and Support
Typically used for maintenance and support projects, at times a continuation of a custom project for ongoing support. Billing as per actual hours spent, with a
minimum number of hours per month, additional hours are charged extra.