Fixed Price model implies a fixed price, project scope and delivery time frame. But, the estimate to build the system may not be accurate.

This results in either the customer or the software supplier absorbing the risk of cost over-runs. This fear may not result in the best business solution, as the software supplier may try to cut corners by opting for workarounds, or overcharging for project changes and extensions.

Time & Materials model provides no real incentives for the software supplier to develop efficiently and the client may have only a limited visibility and control on the development progress and budget.

Where does this leave us?

We believe a combination of both models is best suited as it provides the incentives for both you and us, to develop the best solution that fits the business requirements.