Fixed price or on a contract basis? This question is often asked when developing an IT project. At Citech, we offer both services. They are carried out by IT specialists, who respond to your needs to carry out your projects.
We would like to share with you the key information you need to know about these services: the differences, the benefits and the billing method. We help you make your choice.
If you want to get answers, you've come to the right place. Fixed-price and project management services will no longer hold any secrets for you!
1- What are the differences between fixed-price and contracted services ?
To carry out a digital project, we offer two types of services: fixed price or on a contract basis.
These two services raise several questions. Therefore, it seems obvious to us to clarify the differences between fixed-price and contracted services.
First of all, at Citech, the fixed-price contract is carried out within our Digital Factory based in Dijon. You tell us about your project through your specifications. We have, therefore, an obligation of results towards you. We have to deliver you the turnkey solution (application solutions, CMS website). The deliverable respects the budget, the functional specifications and the duration, previously fixed at the signature of the contract.
As for the services provided by the company, also known as "technical assistance", which is a contract for the hire of work subject to common law, we are subject to an obligation of means. Indeed, we meet your needs by providing you with human resources for a given period of time in order to complete the mission.
2- What are the advantages of these missions ?
The advantages of the fixed price mission
The fixed-price service offers several advantages for the client:
- A specified deliverable
The specifications are detailed in order to specify exactly what is expected for the project. This allows you and our team to be sure of the requirements and the final project.
- Commitment to results
The solution must be delivered on a turnkey basis and comply with the functional specifications.
- Fixed budget
Your budget is fixed when, at the time of signature, we agree on a price for the execution of the digital project (for example: creation of a website via a CMS).
- Pre-determined delivery date
We sign up for a predefined delivery date and we commit ourselves to respect it.
The advantages of the contracting out mission
There are several advantages to a contracting-out assignment:
- Team building
The consultant works within your structure. It is an integral part of your team, which promotes internal cohesion. It is an excellent way to strengthen your team by bringing in additional expertise from the resource.
Moreover, exchanges with other members are facilitated because they take place directly within the company.
- Force of proposals
The consultant brings a fresh perspective to the department he/she joins, he/she is the holder of new ideas. This enriches the brainstorming sessions.
- Save time and money
As you know, recruiting is expensive and time consuming. By opting for a managed service, you avoid the time and expense of hiring talent. Indeed, Citech is in charge of hiring the right nugget for you !
In addition, the client saves time on the project start-up. The latter can be done very quickly because it does not require an exhaustive and complete specification from the beginning.
- Actual billing
Billing is based on the number of days worked. It is therefore the actual time spent on a project by the human resource made available. Payment is made at the end of each month.
- No administrative management
Not a fan of paperwork ? Don't worry, you don't have to do any administrative management, our team takes care of everything for you!
3- How to invoice the service on a fixed-price basis or on a contract basis ?
Fixed price billing
Concerning the fixed price offers within our Digital Factory, we fix the amount beforehand.
Therefore, your budget is fixed and controlled. There is a portion of the total amount to be advanced at the beginning of the project and another at delivery. Moreover, it is possible to benefit from a payment in several times.
Invoicing for technical assistance (work on a contract basis)
Among the advantages of the contracting out mission, we mentioned the actual billing. Indeed, it corresponds to the payment of the days worked, monthly according to a TJ (daily rate) on which we will have agreed beforehand.
This TJ depends on the resource's experience, skills, job and assignment requirements, and geographic area.
As you can see, there is no one service that is better than another. It all depends on your strategic choices, the digital project you have and the way you want to run it.
Based on the above criteria, you can choose the offer that best suits you. If you hesitate between the two, our Business Managers, experts in IT, will gladly guide you so that your choice is consistent with your needs and expectations.
Contact us without further delay!