Flexible Engagement terms for cost effective solutions
Caravel offers very cost effective flexible contract terms and pricing to its clients, suiting the project requirements. Caravel offers three types of pricing / contract models, which are explained below.
This model is suitable when the project is of small duration and where the project requirement specifications are fully frozen and there is not much scope for change in specification. After going through the specification and agreeing on the deliverables with the client, Caravel will estimate the effort required for the project and gives a fixed price bid. Any project overruns will be absorbed by Caravel. The client is assured of the delivery, at the price agreed at the start of the project.
Time & Material
This model is suitable when the project is of reasonable time duration and where the project requirement specifications are not fully frozen or evolving or where there is prototyping required for concept proof or the software developed needs constant updates or maintenance. Caravel and client will agree to a man-hour / man-month rate agreement at the beginning of the project and the required resources are allocated to the project as and when required during various project phases. A dedicated project manager of Caravel or a project manager from the client’s organization manages the project. The resources are ramped-up or ramped-down based on the project requirement and the client is charged as per the usage of resources. This model offers significant cost reduction to the client.
Cost Plus Model
This model is suited when a client wants to setup a Dedicated Overseas Development center (ODC) and has long term plans. This is more suited when the client wants to develop a complete system or a product and continue to release new versions and maintain it or if he wants to transfer all his IT development / maintenance related operations overseas to reduce costs significantly. In this model the client identifies his requirements of space, technical infrastructure, technical resources etc and these are provided by Caravel. The technical resources are also selected as per the client’s selection criteria. A dedicated manager looks after the project management etc operations of this ODC. The recurring cost incurred by the Caravel for running this operation is charged to the Client. Caravel will charge an additional amount, for overheads such as depreciation of equipment, for managing these operations etc on a percentage basis on the operations cost that are actually incurred plus reasonable profit.
In this model the client has to sign an agreement for a definite period and for a minimum number of resources.