Which Is Better: A Fixed Price or a Dedicated Team?

Choose the model of work for your project

Selecting the appropriate development model for your bespoke web application is a crucial next step if you’ve decided to outsource the development of your new software product. The “Fixed Price” and “Dedicated Team” models have constantly contended to be the preferred option for our clients within the industry norms. But it’s important to keep in mind that every situation for creating a custom software solution is different, and these two methods differ greatly in many ways. Let’s examine more closely the advantages of picking one over the other. 

The Purpose and Process of the Fixed Price Model

Due to its long history of success and status as an industry standard, the “Fixed Price” model continues to be one of the most popular choices. This approach entails providing a service within a set window of time in exchange for a predetermined fixed price. The project’s scope and requirements are established at the beginning, making it appropriate for well-defined and simple initiatives. 

However, if the project needs are not totally apparent at the outset, its lack of flexibility may be a disadvantage. Additional agreements and a reevaluation of the final cost would be required for any alterations or changes made throughout the project. If you’re considering hiring a dedicated team for your project, partnering with a reputable mobile app development company can ensure a successful implementation of either model based on your specific project needs.

Pros & Cons Of the Fixed Price Model


Budget Clarity: The Fixed Price model’s ability to give budget clarity is by far its most important benefit. At the start of the project, the cost is determined and agreed upon, preventing any unforeseen costs.

Timeline Commitment: The Fixed Price model assures that the project will be delivered within the set deadline thanks to its predetermined timescale, which might be essential for time-sensitive projects.

Clear Scope and Needs: By promoting careful project planning and documentation, this model helps to ensure that the project’s scope and needs are understood from the beginning.

Limited Client Engagement: The Fixed Price model enables clients to delegate the majority of the work to the development team if they desire limited client engagement in the development process.


Limited Flexibility: The Fixed Price model is less flexible when it comes to accommodating changes and additions to the project scope. Any modifications may require renegotiating the contract and possibly increasing the project cost.

Potential Scope Creep: Without proper planning and detailed specifications, there is a risk of scope creep, where additional requirements emerge during the project, leading to potential conflicts and additional costs.

Inadequate Communication: Limited client involvement can sometimes lead to misunderstandings or miscommunication, which can impact the final product’s quality and functionality.

Risk of Overcharging or Underestimation: If the initial project estimation is inaccurate, it can result in either overcharging the client or underestimating the effort required, affecting the project’s success.

Dedicated Teams Model in Custom Software Development

The Dedicated Team model is based on the idea of assembling a remote team wholly committed to realizing your project. As opposed to the Fixed Price model, this strategy allows for a more hands-on approach from the customer, hence hiring dedicated developers is crucial. This degree of engagement is especially beneficial when creating complicated software products since flexibility and careful project management are essential.

By enabling the client to continually track the progress of the project, this strategy offers them the required control. The company that outsources web development is responsible for assembling a team of talented programmers, project managers, quality assurance experts, and other pertinent specialists to meet the specific needs of the project. The size and skill set of the team are discussed and decided upon before the project’s start, and adjustments may be made while the project is developed.  

Pros & Cons Of Dedicated Teams Model


Flexibility: Because the Dedicated Team model is so flexible, it’s perfect for projects with changing requirements. The team is able to modify the project scope swiftly in response to changes.

Client Involvement: The customer is more actively involved in the project, which improves communication, allows for real-time input, and gives the client greater influence over the development process.

Expertise and Focus: Deep technical experience and understanding of the client’s sector are possible thanks to the committed team’s single-minded attention on the client’s project.

Faster Development: The project’s development can go more quickly and effectively if a committed team works consistently on it.

Scalability: The customer has the option to adapt the team’s size and skill set to the needs of the project as needed.

Cost-Effectiveness: The Dedicated Team approach may occasionally be more economical because clients only pay for the resources and time actually utilised.


Continuous Management: The client’s increased involvement also means continuous management and communication efforts to ensure smooth project progress.

Project Scope Creep: Without careful management, the project may experience scope creep, leading to potential delays and increased costs.

Dependency on Team Performance: The success of the project heavily relies on the skills, performance, and dedication of the dedicated team members.

Time Zone Differences: If the dedicated team is located in a different time zone, coordinating meetings and communication can become challenging.

Potential Communication Issues: In some cases, frequent communication may lead to miscommunication or conflicting ideas.

Overhead for Short-term Projects: For short-term projects or those with well-defined requirements, a Dedicated Team model may result in unnecessary overhead.

Fixed Price or Dedicated Team – Which Model of Work is Best For Your Project?

The best model to use relies significantly on the features and needs of the individual project, hence there is no universally applicable solution. The Fixed Price approach could work better for shorter-term projects with well-defined functionalities and goals. On the other side, the Dedicated Team model is better suited for ongoing partnerships that are more complicated and need for flexibility.

To make an educated choice, it is critical to rank the needs and values of your project. Think about whether you would want the agility and flexibility of a Dedicated Team or the certainty of a Fixed Price approach. Making the optimal choice for your project will rely on your understanding of its specific requirements as both models offer benefits and drawbacks.


The choice between a fixed price and a dedicated team model depends on the specific requirements and nature of the project. Both models offer distinct advantages and cater to different project scenarios. When considering the best approach, it is essential to assess the project’s complexity, timeline, budget constraints, and the level of client involvement required. Partnering with app development companies to hire app developers can provide the expertise and resources necessary to ensure success in either model.

Author Bio.

Kelia Ewart is Content Marketing Manager at Hyperlink InfoSystem. She reached out to you as I am confident to add more value to your website with my guest posting. She represents Hyperlink InfoSystem and being a Content Marketing Manager, She has excellent knowledge to share as a guest post. Hire app developers for your project requirements or new ideas.

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