What Engagement Model Should A Startup Choose?

What engagement model should a startup choose?

Do you know how a startup may acquire its position on the number one? Does it happen overnight? I guess No. Because a successful collaboration between a startup and web development companies does not happen overnight. As far as any startup is concerned, they are generally searching for the feasible business engagement model where they could execute their business on the ground level and then by making all the things possible turn it out to the successful company. All the startups or medium companies are in a mad scramble to outrun their competition.

So now you surely will have a question in your mind that how does engagement model impact on the business like startup or mid-level or large enterprise! In this ever-changing and fast-growing market, choosing the perfect web development engagement model for your company is a crucial and important aspect. But since we are talking about the startup based companies and as far as the engagement model for the startup is concerned, they should know how many components go into planning and determining the right customer engagement model in IT industry. Selecting the right and experienced company or vendor for your web and mobile app development engagement model will create a huge impact on your business growth.

Here, in this article, you will find many options to choose an engagement model, but picking up the right one will help your business (startup) to take to the next level.

Fixed Price Model

Fixed Price Model

Since the name suggests itself and being a startup, the first thing they constraint is a budget. Fixed Price Engagement Model is one of the most commonly used engagement models which is well-suited to clients who have the well-structured process to gather requirements, price timeline, development, and acceptance criteria for the project.

For this model work, you have need to have a scope of planning, requirements, specifications, budget, and analysis sessions.

The more planning you do for your business, the better outcome you will get. It’s very much an important phase before development.

Below are some points that may help you guide how this model will benefit your business:

  • This Fixed Price Model helps you to know exactly the final cost of your project. Thus it never exceeds the budget.
  • When you are choosing this model, you get to know the exactly clear picture of your project, so you can give your inputs or feedback for better changes.
  • The vendor agrees on the terms of the contract, so they are highly motivated to meet the deadline and budget. So, client supervision is not necessary all the time.
  • You will not be surprised by anything as such with specified requirements, fixed budget, and pre-arranged deadlines.
  • Customer will provide a detailed specification document about the application to be developed.

Time & Material Model

Time & Material Model

Time & Material Engagement Model is an absolutely different agile model that is the best fit for iterative and incremental application development. This model helps to ensure that there is a healthy relationship between vendor and client with constant and transparent communication. The flexible of this model provides any project specified modification or changes can be done at any point of software development life cycle.

The Time & Material Engagement Model will help you get a clear thought regarding the features or scope of work of your project.

This model lets you adjust the requirements of clients, shift directions, replace features, and involve them to get the perfect product and fulfil their expectations.

If you are probably into the field of IoT, Game development software or AI software, wherein the end requirements may keep on fluctuating, then we suggest you choose this Time & Material Model which would be fruitful to your business. There are highly good chances to of getting work done in-time and within the budget.

Below are some points that may help you guide how this model will benefit your business:

  • Time & Material Engagement Model is always benefited to the clients as it is not bounded by a fixed budget and that leads to the winning phase after a completion.
  • The contract or price may turn out to be less than in a fixed budget.
  • The Time & Material Model is agile and flexible in getting your development job done.
  • As per the changes or client requirements, a deadline can be easily changed if needed.
  • You have all the control over the software throughout the process.
  • It is better to make decisions in this process, evolving a strategy and building custom software simultaneously for any startups.

Dedicated Team Model

Dedicated Team Model

Dedicated Team Engagement Model is considered the best model of engagement in comparison to your in-house human resource which enables the client to work directly with the developers, and this leads to the highest level of productivity.

This model eliminates the shortcomings of the Fixed Price Engagement Model and Time & Material Engagement Model. Here, you have the advantage to choose a cost and free to tweak the features of the software or make amendments at any point in time.

The advantage of the Dedicated Resource Engagement Model is that you have the full flexibility to change the strength of the team for long-term projects with constantly evolving requirements.

The entire process is monitored by the client.

Below are some points that may help you guide how this model will benefit your business:

  • The client gets a pool of skilled and experienced professionals working just for you beyond your office hours.
  • Freedom to increase or decrease the team as per requirement.
  • It’s more secure, scalable, flexible and transparent model.
  • You get full control over the project development phase and budget scheme.
  • You can save plenty of bucks on staffing and infrastructure requirements.
  • It allows you to give extra infrastructure procured based on the requirements of clients.
Fixed Price Time & Material Dedicated Team
Size of Projects Small & Medium Medium & Large Large
Requirements Defined Evolving Evolving
Flexibility Not Available Yes Yes
Control of Client Little Significant Full


So after scrolling down, you must have some clarification and insight about the different types of engagement model, pricing strategies and feasibility. For startups or small-term, Fixed Price model will take you ahead in the market. Although information and comparison may look tricky for your business, but listing down all your priorities and requirements like timelines, budget, flexibility, and scope of work may help you to choose the right business engagement model for your startup.

X-Byte Technolabs is a global IT service delivery organization that delivers high-quality IT services to clients for all kinds of business projects. If you are looking for some help to create any business model that stands out, then, we can help you in developing and designing that are based on the latest trends and ideas. To learn more about what X-Byte Technolabs does, kindly drop an email on – or contact us today.

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