Software Project Pricing Model : Fixed Cost Vs Time And Material

Every problem has a unique solution in the software development world. Sometimes existing solutions can work for you but sometimes they don’t. Sometimes these solutions might not be the most compatible with your tech stack or aren’t the most user-friendly. So you decide to outsource it. Now comes the difficult segment. Which software project pricing model to choose? These increasing prices of software development can leave you scratching your head when finding the right pricing model. Outsourcing isn’t as straightforward as it was before. This pricing model must fit into your operating procedure, contracted requirements, and goals along with the expenses of the vendor. Here, you will choose the development model and the next step is choosing a pricing model that is compatible with your requirements. Fixed cost and time and material are the two most commonly used types of pricing models. Each has a different set of pros and cons which should be considered before choosing a pricing model. This will be an article comparing the two most popular pricing models and will state the pros and cons of each. 

Fixed Cost or Fixed Price Model

This pricing model is quite straightforward. You pay a lump sum to the service provider, and in return, they complete the project for the agreed-upon amount. The fixed cost model is a straightforward pricing strategy where clients pay a pre-agreed lump sum to the service provider, who, in turn, commits to completing the entire project within that specified amount.
An analogy to consider is ordering a birthday cake. Once both parties agree on the flavor and type of cake, changes might incur extra costs, similar to adjusting features in your project.

Advantages:

1. Requires less client involvement in intricate project details.
2. Offers high control over budgeting, ensuring financial predictability.
3. Promises better-timed project delivery.

Disadvantages:

1. Presents limited flexibility in accommodating change requests.
2. Introduces the potential for estimate and resource risks.

When to opt for the Fixed cost model:

This model is beneficial for short-term projects characterized by clear visions, expectations, and highly predictable requirements, specifications, and rates. Nevertheless, if you’re operating with a limited and fixed budget, have a small and well-defined project scope, and clear requirements and deadlines, this model is an excellent option. It serves as an effective choice for small projects and is commonly employed in developing cost-effective Minimum Viable Products (MVPs).

Time and Material Model

In the realm of project development, the Time and Material (T&M) model emerges as a dynamic and flexible pricing strategy. Unlike fixed cost models, where a predetermined sum is agreed upon, T&M projects operate on an hourly payment basis, allowing clients to pay developers for the materials and time invested in the project.

Advantages:

1. Long-Term Project Suitability: Ideal for long-term projects where the scope may evolve over time, providing room for adjustments.
2. Technological Flexibility: Offers the flexibility to change technologies and tech stacks according to evolving project requirements.
3. Feature Selection: Enables the selection of features that deliver tangible value to end-users, fostering adaptability in project development.

Disadvantages:

1. Potential budget risks and scope creep risks.
2. Adverse vendor incentive for prolonged projects to increase billable hours.

When to opt for the Time and Material model:

In essence, the Time and Material pricing model serves those embarking on projects with dynamic requirements and evolving scopes. It provides a strategic approach for clients seeking adaptability, transparency, and active involvement throughout the development journey. This model is particularly advantageous for those navigating long-term projects, where constant adjustments and fine-tuning are essential.

Conclusion:

Hence at Assystant, we analyze your business model and agree on a pricing model after consulting with you. We suggest the one that is specific to your project, cost-effective, and will provide you with value. 

Create a new project with Assystant.

Software platforms vs software products for startups

This blog will help you understand what businesses need to consider building both a software platform and a software product. A product is a usable piece of software that can be sold or offered, while a platform is a system that enables a product to work or communicate with another product.

Whether you are creating a software product or platform, it is always important to be knowledgeable about both and carefully consider various factors before diving into the development of a product or a platform.

So what is a software product?

In simple terms, a software product is software developed and maintained for the benefit of end users, often to satisfy a specific market need. Software products ensure that users can interact with the software to meet their needs and derive value instantly.

There are two types of software products

1. Generic – when there is a broad and extensive user base.

2. Customized – when the user base is very targeted.

Creating a software product

Creating a software product involves starting with a compelling value proposition. Subsequently, it must undergo testing to ensure efficiency and quality. The main components include:

1. Product design – the visual aesthetics and user interface through which end users will interact with the product.

2. Functionality and features – how users interact with the software product when using it.

3. Content – refers to the data and information inside the software product.

One of the best examples of software products is Zoom. Its easy-to-use interface and functionalities make video calling easier than ever.

Now, what is a software platform?

A software platform is a software architecture that serves as a base for multiple products. For instance, Microsoft acts as the base for various products like Microsoft Teams, Word, Excel, etc. Products can evolve into platforms, but the reverse is not possible. Therefore, it’s crucial to have clarity before creating a software platform. A platform often facilitates third-party interactions, like a food delivery service that allows users to place an order at a restaurant through a mobile application or track their delivery using GPS. Creating a platform is riskier than creating a great product that can transform into a platform. Take Facebook, for example; it started as a successful product and evolved into a platform. If you have a clear vision to build a platform, keep in mind that platforms are complex to develop. You need to aggregate a significant number of users and have adequate resources. Successful platforms like Amazon started small but targeted the right audience with extensive research.

So, which one to choose for your startup?

Consider the following when deciding between developing a product or a platform:

1. You must have enough resources – Building a platform is more complex than building a product. Targeting the platform to the right users is essential to stand out in the market. Platforms support multiple products, making their development more complex.

2. Understand the differences between platform and product.

3. Longevity – Great products have substantial longevity, but platforms generally have longer lifespans than products. Platforms are ideally built to last for an indefinite period.

4. Constant updates – Platforms must be flexible enough to adapt to market changes. Developing software that can be easily updated is crucial for flexibility and quick improvements over time.

In the end, whether it’s a platform or a product, both can provide users with value. However, it is advisable to develop the one that puts the least stress on your resources and organization, making the most business sense for you.

 

Effective ways to reduce software development cost

Custom software development is on the rise these days because each organization targets a different problem to solve. But every organization wants two things, one being cost reduction and cost-effective solutions, the other being an efficient implementation. Companies focus on reducing software development costs while also maintaining quality. This article lays out 7 effective ways to reduce development costs. They are as follows:

1. Use Open sources libraries

   Open-source libraries are a great way to reduce costs because these are freely available and can be used and modified without permission. These reduce the software development cost greatly by eliminating the licensing fee. It comes with reliability and security risks, however, the security is also high because there is a large number of participants using the same libraries hence increasing the chances of discovering and resolving security vulnerabilities.

2. Use a simpler tech stack

   Having a proper plan and choosing the proper tech stack for your project is one of the best ways to go. Choosing the right tech stack will help the developer to code better and faster, eventually reducing the billing hours. It is important to choose a tech stack that is common with developers and easy to learn. It will help you find talented developers within a dynamic developer community. For example, if you use a less common tech stack like LISP, it will be difficult for you to get developers who are familiar with it.

3. Use No-code and low-code platforms

   What if developers could quickly build solutions without building a code line by line from scratch? Fortunately today it is possible with no code and low-code platforms. These platforms contain drag-and-drop interfaces and built-in tools for development, testing, and deployment. These are cost-effective and flexible which is a great way to reduce costs.

4. Use of cloud

   This is a great way to reduce the costs of software development as this can reduce on-site server implementation costs and maintenance as well. With the help of the cloud, you can access your data from any time, anywhere. Cloud environments allow agility, increased performance, and faster time to market.

5. Try renting over building software

   It is always a great idea to rent the required software or a module because renting software will always be cheaper than building your own software. In the case of proprietary software, there is significant upfront cost, maintenance, and support costs. Whereas in the case of software on rent, the upfront costs and maintenance overheads are typically lesser.

6. Create an MVP or POC

   Build a minimum viable product to learn about the market while creating the larger product development. Sometimes the research is not always enough and it is a great idea to launch the MVP or POC before launching the final product to plan your resources accordingly.

7. Outsourcing

   Hiring developers in-house may get costly and time-consuming because you will have to implement infrastructure, and processes and will have to hire experts to build your solutions. On the other hand, outsourcing can be a great way to reduce costs because you do not have to think about hiring, building processes, or infrastructure costs. Outsourcing gives you access to experts for your project in a cost-effective manner.

8. Using AI

AI reduces software development costs by automating mundane tasks, improving code quality through intelligent analysis, enabling predictive maintenance, enhancing collaboration with smart tools, and accelerating testing processes. These efficiencies streamline development, minimize errors, and optimize resource utilization, resulting in significant cost savings for organizations.

We at Assystant understand that collaboration is very much required for creating successful projects. Hence we work on understanding your business model so that we can build solutions that can ensure quality and are cost effective. 

HRTech trends in 2023

In this day and age, technology drives the way we act and communicate. Technology has helped us collaborate and share ideas in ways that were unimaginable before. And when HR is concerned, these days technology can play a vital role. Hence it’s important to keep note of HRTech trends of 2023. The world of work is changing at a fast pace and businesses keep track of trends so that they can create a space for themselves in the market. And HR is shifting towards creating a better employee experience to attract better talent.

Organizations want to benefit from technology as the hybrid work model is on the rise. More and more people are choosing the hybrid work model and more companies would rely on technology so that HR operations can run smoothly. Till these days HRTech relied heavily on Applicant Tracking Systems & HRMS. But with each passing day, there will be some advancements in technology. Hence a lot of these HRTech trends will focus primarily on digitization and technology tools in 2023. Below are five HRTech trends for 2023.

1. Growing usage of AI and ML.

AI can really enhance talent acquisition and employee retention. Companies want to automate every process because it is efficient and can increase productivity. Employers are automating processes like Recruitment, Onboarding, Performance management, and employee engagement. Also, machine learning can be used in understanding and identifying patterns of behavior and can be used to predict and curb issues like discrimination and harassment which is a huge concern in the HR space.  Using these tools HRs can actively address problems before they become issues.

2. Cloud-based HRTech systems

In today’s world technology has connected us better than ever and because of this kind of seamless communication is also expected from employers. Hence most employers are adopting cloud-based HR systems and Human Capital Management (HCM) solutions. these systems help employers access employee data anytime and anywhere. These tools can be instrumental in measuring and improving employee productivity or collaborating with other teams. 

3. Heavy use of ESS

Employee Self-Service (ESS) will be heavily adopted in the HR industry as it enables employees to have a better employment experience. It allows employees to access and update their data through a portal directly. Employees can do tasks like updating benefits enrollment, requesting leave, checking timesheets and compensation, and other HR-related tasks on their own. Employees will be able to update their data whenever required and the HR managers can free up their time to make more impactful decisions.

4. More and More Data-informed decisions.

People managers always rely on data to make decisions. But these days people analytics are helping managers to plan, budget, and staff better, ensuring better performance. Also, data analytics can help managers make decisions to reach their goals and arrange career planning and even coaching to the specific needs of each employee. All these decisions would be data-driven and will be specific to each case.

5. More HRIS integrations 

Another trend that is on the rise is the integration of more niche HR systems with the major HRIS systems. This will allow a broad range of HR functions, from performance management to employee recognition, equipment tracking, etc. in the same HRIS. this will allow access to data whenever and wherever possible and will reduce the manual process.

All these HRTech trends are on the rise because, in 2023, all systems will be automated. Businesses are adopting trends to be better than the market and reach their goals faster.

And HR managers are not foreign to the subject of upcoming technologies. And Assystant knows that. Hence we consult with your people managers to create solutions best for you, your people manager, and your employees. 

How to choose perfect venue management system

Venue management systems have become increasingly popular with the rise of computer systems, AI, and cloud technology. They help reduce the hassle of managing tickets for venues manually. This is especially important for large venues that can be difficult to manage manually. With venue management systems, the booking process can be done entirely online. Large auditoriums, stadiums, or movie spaces can be very tiring and cumbersome to manage manually, especially when attendance needs to be continuously monitored. Venue management systems make this tedious task easier by reducing the hassle of manually managing bookings and scheduling, thereby managing spaces more effectively. However, with so many venue management systems available in the market, it is important to choose the right one.

The benefits of a Venue management system must offer 

The biggest benefit of using a Venue management system is saving time and trouble in managing spaces. A good venue management system is easily usable and must be smart and simple.  The distinguishing features of a venue managing system should be. 

1. Space management made easy

When the whole booking process is made online and is constantly updated, it becomes very easy to keep track of admitting people in the space and managing the available space of the venue. 

2. Less administration 

With a good VMS, you can save time and money by putting less effort into the administration duties. Since the entire process from booking to seating is automated it becomes easier. 

3. Visualize the space

It can take a lot of work to visualize the available space. A VMS aids in visualizing and understanding the spacing and managing the space for important events 

4. Flexible

A good venue management system is incredibly flexible. It is customizable to your own needs and you can automate the scheduling however you like. This makes it easy to schedule an event and manage the space according to that event. A good Venue management system must be flexible so that users can decide the number of permissible seats depending on an event

5. Easy to implement

A good Venue management system is also easy to implement. A VMS is easy to use and you might get your desired results in minutes when you can use a Venue management system. 

6. Easy to access

A good VMS must be easy to access. It should have a web and mobile-friendly application to make sure that the event can be managed at any time or place by the managers. 

7. Easy to integrate

Like any other third-party application, a good VMS must be easy to integrate. This becomes especially important when businesses use multiple third-party applications and these integrations must be smooth and seamless to create a beautiful digital experience. 

8. Data security

Like any other third-party application, a VMS must have data security to make sure the data is not in the wrong hands 

All these features are essential and hence businesses need to look out for these features before selecting a VMS for an event. Finding the right VMS is the key to making sure that you have your space can do justice to the event. Hence we have our tool called space mapping. Not only it can take care of and visualize your space but it can automate the booking process, keep your data safe, and can be easily integrated into third-party applications. Not only that space mapping can also be easy to use and is easy to access to make sure you can always manage your space effectively. 

Best practices for project outsourcing

1. Define your goals and objectives

2. Communication

3. Metrics

4. Quality Assurance

When it comes to quality, set clear standards and implement robust quality assurance procedures for the project. Don’t settle for anything less than the best, even in outsourcing. Clearly define requirements, communication protocols, and quality standards to uphold your expectations. Regularly review progress, leverage project management tools, and conduct thorough quality testing. Choose a trustworthy partner and include quality assurance measures in the contract.

5. Have clear project plan

In planning your project, identify requirements, dates, and deliverables, and allocate resources accordingly when outsourcing. Clearly define roles, duties, communication procedures, and quality standards. Assess the capabilities and experience of the outsourced team, ensuring adequate resource allocation. Discuss your budget and cost plans openly with your partner, emphasizing transparency. Develop a project management strategy, utilizing tools to monitor progress and performance. Consider setting up escrow accounts for your projects to plan payments upon project completion. Establish explicit project management protocols, ensuring the team remains well-organized and on schedule.

6. Ensure legally safety

Most importantly, to ensure legal safety when outsourcing, prioritize the inclusion of confidentiality agreements and measures for intellectual property protection in your outsourcing contract. Confirm that your outsourcing partner adheres to legal regulations and data protection laws relevant to your business. Establish a comprehensive contract with a trustworthy outsourcing partner, clearly outlining legal expectations and responsibilities. Integrate provisions for confidentiality, intellectual property protection, and data privacy. Regularly communicate and monitor performance to ensure compliance with contract and legal obligations. Seek legal counsel if necessary.

7. Manage Risks

8. Be mindful of the culture of your partner. 

Recognizing the significance of cultural nuances, language barriers, and time zone variations is crucial in the realm of project outsourcing. These factors can significantly influence communication and collaboration dynamics. To ensure seamless collaboration, it’s imperative to establish clear communication standards and engage proactively with the outsourcing partner to understand their cultural context. Take the initiative to explore their social platforms and office environments for deeper insights. Implementing a hotline process further ensures swift resolution of urgent matters, bridging the gap created by time zone differences. This proactive approach fosters a harmonious working relationship despite diverse cultural landscapes.

Finally, project outsourcing has the potential to make or break a company. Many of you will agree with this statement. Thus, make an informed decision. Selecting a project outsourcing company for your organization is not a simple task. You must use your wits to determine which one is best for you. Finding an excellent business for your software development needs is a difficult undertaking.

Assystant is here to help you and provide you with solutions that suit your business needs. Let us collaborate to create a success story.

Choosing the Right CRM: Essential Features for small businesses

As a small business owner, you may find it challenging to choose the right CRM software from the many options available in the market. Each CRM offers numerous features, and as an SME, all these features can be enticing, which can be overwhelming. However, selecting the right CRM software can be a game-changing decision for your organization. Customer relationship management is a crucial yet time-consuming task that is prone to human errors. The right CRM can transform the way your business interacts with clients and can either make or break your business. So, let us understand what CRM software is and explore the essentials to look out for in 2023. 

CRM software is a tool that can help automate and manage the customer lifecycle for sales and marketing. This software is designed to store all consumer information in a single repository, making it easier for organizations to manage relationships. It also helps in automating common processes and monitoring performance and productivity. Therefore, every business needs to choose the right CRM software.

But, would I, a small business owner need CRM software? 

Certainly. A CRM (Customer Relationship Management) system has many benefits and can be an essential tool to help you thrive in a competitive market. One of the most significant advantages of CRMs is that they provide a reliable system and process for maintaining relationships with customers. They also seamlessly integrate organizational workflows and processes across marketing, sales, and customer service departments. In addition, CRMs simplify tedious tasks and offer tools to track progress. However, it’s crucial to know what features to look out for to choose the right CRM. So, here are some essential features to consider before selecting a CRM.

Standard or core features

Every reputable CRM software will have these essential features that define a CRM.

1. Contact management

A CRM must have the ability to store contact information like names, addresses, and social media accounts in a database that is easy to search. Most CRMs do offer this but see the usability and layout of the database. This will help you choose the one. 

2. Interaction tracking

A CRM must have notes and keep records and track documented interactions and conversations of specific contacts. It must also track interaction history. You should always see how collaborative the CRM is and how many times a prospect will change hands in the sales funnel. 

3. Lead management

A CRM must have the processes and manage the process of converting prospects into potential customers (leads) by identifying, and scoring moving leads in a sales pipeline. 

Check if the CRM flows and transitions in a way that makes sense for your business, and your team. This will help you choose a CRM software that works for your business.

Common features 

Now, these features do exist in most CRMs but are not essential ones. But they distinguish a good CRM and a moderate one. These are features that you might want to consider when you are deciding on a CRM. 

1. Email integration

Integrating your Gmail or outlook or yahoo allows you to be more collaborative and is a great way to manage the contact list. But this is to consider if your team collaborates using email. If that is the case then this becomes essential for your CRM. 

2. Document management

Collecting, uploading, sharing, and storing documents in a centralized space so that they are accessible to everyone in your organization. This is a huge thing to consider if you are having a large team and document management can ensure a smooth, consistent experience.

3. Proposal management

If your organization requires some back-and-forth between contacts then a great feature to have is a centralized space for proposals meant for contacts 

4. Pipeline management

If you have a longer sales funnel then it should be a feature to look out for. Pipeline management is you can watch the entire sales pipeline and the progress of each step and manage each step of your pipeline in your CRM

5. Workflow automation

One of the many reasons why organizations invest in CRM software is because tasks can be repetitive. If you can automate those tasks, you can reduce the chances of human error and can create workflows that can trigger actions or send follow-up reminders. However, it is a feature that can be found as an upgrade. So you have to see how many tasks in your team are repetitive in nature. 

Optional features

Now, these are the features that change in each CRM. these features distinguish each CRM and if a CRM has these along with the above features then it is a good one for you. 

1. Analytics

To troubleshoot your problems, it becomes an easy process if you have the analytics of your sales figures in a centralized location. What you can measure, you can improve.

2. Forecast sales

Prediction of sales figures based on the present and past figures will be a great feature to make informed decisions for the future. 

If an organization wants a CRM to work for them it is important to look into the core features. You can look into the common and essential features according to your business requirement and choose a CRM accordingly. 

But sometimes this decision can get overwhelming. So here is Assystant to help you. Assystant will help you choose the right software so that you can have these important decisions with the information.  

PropTech Trends of 2023

Over the past three decades, the real estate industry has undergone significant changes, with information technology (IT) playing a pivotal role in shaping its landscape. The industry is currently experiencing a substantial digital transformation. It is essential to keep an eye out for Proptech trends that are likely to work well in the industry by 2023.

Proptech is one of the most prominent industries expected to reach $8.6 trillion by 2026, and technology is a major factor behind its growth. Technology has become an essential consideration in the industry, as it enables everyone involved to make better decisions and create a better consumer experience. Therefore, it is crucial to consider industry trends to stay ahead of the curve.

The pandemic forced millions of people to shift their operations online, heavily influencing the trends in Proptech. The real estate industry is undergoing significant changes due to newer innovations and technologies, which are transforming the way it operates. It is expected that there will be even more significant changes in the coming years.

Here are 6 major Proptech trends of 2023

1. AI and ML. 

Artificial intelligence and machine learning are widely used in the real estate industry, and their use is expected to increase even further. These technologies enable realtors to incorporate data pipelines and algorithms in their decision-making process. Additionally, AI and ML can be employed for various purposes such as advertising and content marketing. By using AI chatbots, for instance, real estate companies can enhance the customer experience by responding promptly to consumer queries.

2. CRM software

CRM software has gained significant popularity across various industries and is now making its mark in real estate. This is attributed to the vital need for real estate professionals to stay connected with clients and leads, emphasizing the importance of maintaining seamless communication. CRM software facilitates end-to-end management, encompassing tasks such as handling incoming requests and generating price quotes for property sales and management. Moreover, these systems can offer industry-specific features tailored to the unique requirements of real estate professionals.

3. Automation

4. 3D modeling 

5. VR and AR 

6. Blockchain

Blockchain is gaining popularity for its ability to reduce paperwork and bureaucracy while ensuring necessary transparency. It stands out as an emerging trend in prop-tech due to its efficiency and multi-party involvement. The decentralized nature of these transactions also enhances security.