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Fixed Price Model to Evaluate Partner Reliability

Ambitious development strategy forced the Client to search for additional R&D resource pool with some specific experience in digital security projects. A series of Pilot projects delivered by fixed price model was a perfect option to evaluate Apriorit as a potential partner, to proceed then to the dedicated scheme with minimal risks for both sides.

For more details:

Client: (NDA protected name)

Country: USA

At some point, the Client faced the problem of shortage of development resources. Management decided to hire an R&D outsourcing subcontractor as it would not only provide an easily extensible resource pool but also allow to cut development costs.

Apriorit was introduced to the Client as a reliable research and development partner with an extensive security project experience. The Company planned to find an exclusive outsourcing provider so it was essential to evaluate the reliability of potential partner and compatibility of the business processes before starting a long-term contract.

Partners started to work with a series of pilot projects around the solution security features, by the fixed-price model. This model minimizes the client’s risks as after estimation and approve project budget is never changed. Apriorit provided granular detailed estimates for each project scope to represent the structure of project cost and development process. Subsequent evaluation proved the high quality of delivered code and functional components as well as the efficiency of the project communication and implementation processes.

After the evaluation, the Client signed a new agreement with Apriorit, switching to the dedicated scheme, that supposes lower cost while the overall risks are mitigated because of working with the trusted service provider.

This case is showing typical stages of riskless choice of R&D outsourcing provider:

  1. Fixed-price model is ideal for a pilot project with limited scope minimizing budget and development risks.
  2. Dedicated scheme is a good option to continue partnership after communication and project relations are established: it gives additional benefits in terms of cutting time and money costs.

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