More and more companies are outsourcing their IT development to gain competitiveness and reduce costs. To do so, they can choose between two types of services: technical assistance and fixed price. Each of these services has its advantages. In this article, we will review the benefits of each strategy to help companies make an informed decision.
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Why choose a technical support contract?
Technical assistance is a flexible mode of intervention that allows a supplier to support its customer by providing a particular skill on a project, for example, IT development. What are the advantages of this type of outsourcing contract?
Greater flexibility
Technical assistance allows for a faster project start. There is no need to formalize all project phases or to evaluate and compare proposals from competing vendors. Simply ask suppliers about their pricing for a specific skill set and then start the selected provider.
In the case of projects whose stages are not clearly defined, technical assistance allows the supplier to accompany the customer initially in the phase of evaluation of the project and definition of the tasks to be carried out.
The customer remains in control
In a technical assistance IT development project, the client maintains control over :
- Strategic decisions (functional and technological choices);
- Risks (controlling schedule and budget drifts);
- Project management and its administrative aspects.
Better budget flexibility
Technical assistance is a delivery method that allows for flexibility in terms of budget. The provider is paid for the days actually worked, which means that companies do not need to budget for a fixed amount. This can be advantageous for projects that are not yet fully defined or for companies that need more financial flexibility.
Additional expertise
Technical assistance allows companies to benefit from the expertise of a specialized and highly qualified provider. This can be particularly useful for projects that are temporary or require technical skills that are not available in-house.
The provider can work alongside the business team to add value to the project delivery. This includes helping to identify appropriate technologies for the project, design effective systems and processes, and manage development and testing activities.
More fluid project management
Technical assistance can also facilitate project management. Indeed, the provider can take over certain tasks to free up time and resources for the company's team. The provider can also act as project manager to ensure that the request is executed on time and on budget.
As a project manager, the provider can also help set clear objectives, develop action plans, and evaluate project progress. He or she can also monitor risks, potential problems that may arise and take steps to resolve them quickly.
TMA or Third Party Application Maintenance
Finally, technical assistance can provide post-project support to ensure that the system is up and running properly. This can include maintenance, upgrades, and user support services to ensure that the system continues to perform and meet the needs of the business.
Why choose a package deal?
A fixed price is a contract whereby the company and the service provider agree on a fixed price for a project. This price is often determined according to a specification and an estimate of the time and resources needed to complete the project. The fixed-price contract is a very common option in IT development outsourcing, as it offers many advantages to the client.
Predictable costs
With a fixed price contract, costs are predictable. The company knows exactly how much it will have to invest for its IT development project and will not have any surprises at billing time. This allows for better budget management and avoids cost overruns.
Controlling deadlines
The package contract also allows for control of the project timeline. The service provider commits to delivering the project within the agreed-upon time frame, allowing the company to plan accordingly. This predictability of time is especially important for projects that have strict deadlines or must be delivered by a specific date.
Risk minimization
The package contract also reduces the risks for the company. The service provider takes on much of the risk associated with the project, such as technical risks or delivery delays. This allows the company to focus on other aspects of its business, knowing that the project is in the hands of a competent and experienced provider.
Greater transparency
The package contract also provides greater transparency for the company. The company knows exactly what it will get because the service provider is committed to providing the services and deliverables described in the contract. This transparency allows the client to better understand the project's costs and timelines, and to easily track the progress of the work.
To conclude
Technical assistance and package deals are two advantageous options when outsourcing an IT development project. Technical assistance allows you to benefit from personalized support and quality technical expertise, while the fixed price offers cost and time control as well as risk reduction for the company.
By combining these two options, companies can outsource their IT development project with complete peace of mind. Indeed, in both cases, they are sure to benefit from a customized technical support while controlling the costs and deadlines of their project.
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