In the outsourcing world there are few optional and popular pricing models. If you have already decided to outsource development fully or partly, the next step is choosing the framework and terms of collaboration with an outsourcing partner. 

Keep it mind that the structure of the pricing will have a strong  ongoing impact on your business during the determined partnership period. Depending on client’s budget, project requirements, most software outsourcing companies, offer the following cooperation models:

• Fixed price- fixed price model refers to an upfront budget allocation and schedule. There is a fixed commission paid prior to delivery most of the time. The benefit of fixed fee is the ability to avoid “expensive surprises”. However, it is hard to control the manpower who is actually delivering the work and the flexibility is limited and any changes will be added separately. 
• Time and material- this is the most flexible model in terms of both budget and project requirements. The cost is established when a project is finishing, depending on the time and efforts used to implement it.
• Dedicated team- in this case you will have a remote team of developers committing to your project/ company. This type of model is used typically for long-term collaborations. You have the option to  manage the team and control budgets, communication processes and systems. This model is based on a fixed service fee depending on the size and seniority of the team. The payment is monthly in most of the cases.

@Pillar we believe in long term relationships and ongoing partnerships. Having a dedicated team will build familiarity and expertise for the outsourced developers with your company. We have noticed that this pricing model has the highest satisfaction rates among clients and advice examining it.