Engagement Models: Meaning, Types, and Pros

You have a problem your company needs to fix. You decide to call in an engagement model where a team of professionals solves the problem for you. However, there are many engagement models and each one has its own pros and cons. This article will help you better understand what each engagement model means, how they work and when should be used.

Engagement Model Definition

When you think about it, engagement models are a way of working with a client. It’s a framework for how we work together and what happens if things go wrong.

It’s also about how we get paid and what control we have over the project.

Engagement models come in all shapes and sizes. They vary based on the industry, services provided and client needs. You’ll also find that there are some commonalities across industries, though these can be very different depending on the type of work you do or what clients expect from you.

Engagement models are not just about how you get paid. They also dictate how the relationship works and what happens if things go wrong. What if your client is unhappy with your work? What if they ask for changes or revisions? Do you have control over those decisions? How long do they have to decide whether they want to continue working with you? Engagement models define these variables and more so that both parties know what’s expected of them during the project’s life cycle.

Types of Engagements Models

• Extended Team Model – This model is typically used when you need a team that has multiple skillsets and disciplines. This model can also be used if you have a lot of work that needs to be done, but don’t know what will happen next. The team includes everyone from designers to developers and testers as well as other specialists like project managers or even someone who handles customer support complaints (if applicable). This type of engagement model gives customers total freedom over their product development process because they have access to all the resources needed in order for them to create something great!
• Dedicated Team Model – In this case, there’s no need for any additional resources besides those already provided by your vendor company itself; therefore making things simpler for both sides since everything is taken care off within one single group with no third parties involved whatsoever which saves money too! However this comes at cost since it doesn’t allow much flexibility regarding hiring decisions such as adding more people later on down line during production stages without having extra cost implications associated with hiring additional help outside main contractor services provided by primary provider responsible only

Extended team model

The extended team model is a software development approach that involves augmenting an existing in-house team with remote resources to create a cohesive and collaborative development team. This model allows businesses to leverage the expertise and talent of remote team members who work alongside the internal team, facilitating seamless communication and efficient project delivery.

In the extended team model, remote team members typically work on specific tasks or projects under the guidance of the internal team. They are integrated into the existing team structure, aligning their work with the overall project goals and objectives. This model offers flexibility in scaling the team based on project requirements, allowing businesses to quickly expand or shrink the team size as needed.

Key aspects of the extended team model include:

1. Collaboration: Remote team members collaborate closely with the internal team, actively participating in meetings, discussions, and decision-making processes. They contribute their expertise and insights to the project, fostering a collaborative work environment.
2. Communication: Effective communication is essential for the success of the extended team model. Various communication tools and platforms are used to ensure seamless interaction between remote and internal team members. Regular meetings, video conferences, and instant messaging facilitate real-time communication and minimize any communication gaps.
3. Skill and Expertise: The extended team model allows businesses to access a broader pool of talent by hiring remote professionals with specific skills and expertise. This ensures that the team has the necessary capabilities to handle various aspects of the project effectively.
4. Cost Efficiency: By incorporating remote team members, businesses can optimize costs by leveraging the advantages of offshore or nearshore resources. This model allows for cost-effective scaling of the team without compromising on the quality of work.
5. Flexibility: The extended team model offers flexibility in team size and resource allocation. As project needs evolve, businesses can easily adjust the team composition and add or remove resources accordingly. This flexibility enables efficient resource utilization and adaptability to changing project requirements.
6. Time Zone Considerations: When working with a distributed team, time zone differences need to be taken into account. Proper planning and scheduling of meetings and tasks ensure that the team members can collaborate effectively despite being in different time zones.

The extended team model provides businesses with a strategic approach to address resource gaps, accelerate project delivery, and tap into a diverse talent pool. By blending the skills and expertise of remote team members with the in-house team, businesses can achieve successful outcomes while maintaining control and coordination over the development process. In the dedicated team model, the remote team functions as an extension of the client’s internal team, working collaboratively and following the client’s direction and requirements. The client maintains full control over the project, while the remote team provides the necessary skills, expertise, and resources to execute the development tasks.

Key aspects of the dedicated team model include:

1. Team Composition: The dedicated team consists of professionals with diverse skill sets, including developers, designers, testers, project managers, and other necessary roles. The team is tailored to meet the specific requirements of the project.
2. Project Ownership: The client retains complete ownership and control over the project, including decision-making, project management, and overall direction. The remote team acts as a dedicated resource pool, providing the necessary talent and support to execute the project effectively.
3. Long-Term Collaboration: The dedicated team model is typically employed for long-term projects or ongoing development efforts. The remote team becomes an integral part of the client’s workflow, working closely with the internal team and fostering a long-term collaborative relationship.
4. Seamless Communication: Effective communication is crucial in the dedicated team model to ensure smooth coordination between the client’s internal team and the remote team. Regular communication channels, such as video conferences, email, and project management tools, are utilized to facilitate transparent and timely communication.
5. Flexibility and Scalability: The dedicated team model offers flexibility and scalability, allowing the client to adjust the team size and composition based on project requirements. Additional resources can be easily onboarded or scaled down as needed, providing agility and adaptability.
6. Cost Efficiency: The dedicated team model provides cost advantages as clients can access a skilled remote team without the overhead costs associated with hiring and maintaining an in-house team. It allows businesses to optimize costs while still ensuring quality deliverables.

The dedicated team model enables businesses to establish a dedicated development team that aligns with their project goals and objectives. By leveraging the expertise and resources of a remote team, businesses can accelerate project timelines, enhance flexibility, and access a broader talent pool while maintaining control over the project’s direction.In the dedicated team model, the remote team functions as an extension of the client’s internal team, working collaboratively and following the client’s direction and requirements. The client maintains full control over the project, while the remote team provides the necessary skills, expertise, and resources to execute the development tasks.

Key aspects of the dedicated team model include:

1. Team Composition: The dedicated team consists of professionals with diverse skill sets, including developers, designers, testers, project managers, and other necessary roles. The team is tailored to meet the specific requirements of the project.
2. Project Ownership: The client retains complete ownership and control over the project, including decision-making, project management, and overall direction. The remote team acts as a dedicated resource pool, providing the necessary talent and support to execute the project effectively.
3. Long-Term Collaboration: The dedicated team model is typically employed for long-term projects or ongoing development efforts. The remote team becomes an integral part of the client’s workflow, working closely with the internal team and fostering a long-term collaborative relationship.
4. Seamless Communication: Effective communication is crucial in the dedicated team model to ensure smooth coordination between the client’s internal team and the remote team. Regular communication channels, such as video conferences, email, and project management tools, are utilized to facilitate transparent and timely communication.
5. Flexibility and Scalability: The dedicated team model offers flexibility and scalability, allowing the client to adjust the team size and composition based on project requirements. Additional resources can be easily onboarded or scaled down as needed, providing agility and adaptability.
6. Cost Efficiency: The dedicated team model provides cost advantages as clients can access a skilled remote team without the overhead costs associated with hiring and maintaining an in-house team. It allows businesses to optimize costs while still ensuring quality deliverables.

The dedicated team model enables businesses to establish a dedicated development team that aligns with their project goals and objectives. By leveraging the expertise and resources of a remote team, businesses can accelerate project timelines, enhance flexibility, and access a broader talent pool while maintaining control over the project’s direction.

This model is beneficial for both the client and vendor. The client can reduce costs by paying for specific services, while the vendor has more control over its team’s workloads. This model also helps companies manage staffing levels when there are peaks in demand.

Dedicated team model

In the dedicated team model, the remote team functions as an extension of the client’s internal team, working collaboratively and following the client’s direction and requirements. The client maintains full control over the project, while the remote team provides the necessary skills, expertise, and resources to execute the development tasks.

Key aspects of the dedicated team model include:

1. Team Composition: The dedicated team consists of professionals with diverse skill sets, including developers, designers, testers, project managers, and other necessary roles. The team is tailored to meet the specific requirements of the project.
2. Project Ownership: The client retains complete ownership and control over the project, including decision-making, project management, and overall direction. The remote team acts as a dedicated resource pool, providing the necessary talent and support to execute the project effectively.
3. Long-Term Collaboration: The dedicated team model is typically employed for long-term projects or ongoing development efforts. The remote team becomes an integral part of the client’s workflow, working closely with the internal team and fostering a long-term collaborative relationship.
4. Seamless Communication: Effective communication is crucial in the dedicated team model to ensure smooth coordination between the client’s internal team and the remote team. Regular communication channels, such as video conferences, email, and project management tools, are utilized to facilitate transparent and timely communication.
5. Flexibility and Scalability: The dedicated team model offers flexibility and scalability, allowing the client to adjust the team size and composition based on project requirements. Additional resources can be easily onboarded or scaled down as needed, providing agility and adaptability.
6. Cost Efficiency: The dedicated team model provides cost advantages as clients can access a skilled remote team without the overhead costs associated with hiring and maintaining an in-house team. It allows businesses to optimize costs while still ensuring quality deliverables.

The dedicated team model enables businesses to establish a dedicated development team that aligns with their project goals and objectives. By leveraging the expertise and resources of a remote team, businesses can accelerate project timelines, enhance flexibility, and access a broader talent pool while maintaining control over the project’s direction.

In this model, the team is dedicated to one project. They might have other things going on in their lives or at their jobs, but for the duration of this particular project they are completely focused on it and nothing else.

Fixed price model

The most common engagement model is the fixed price model. This is used when the scope of work is well defined and the client has a clear idea of the cost involved. It’s also used when they want to minimize their risk by paying an upfront fee for services, which will then be paid out according to agreed milestones or deliverables set during contract negotiation.

Key aspects of the fixed price model include:

1. Scope Definition: Before entering into the fixed price agreement, the client and service provider must define and agree upon the scope of work in detail. This includes clearly outlining the project requirements, deliverables, timelines, and any specific milestones or objectives.
2. Price Agreement: Once the scope of work is defined, the service provider provides a fixed price proposal for the entire project. The price is determined based on factors such as the estimated effort, complexity, and resources required to complete the project as per the agreed-upon scope.
3. Project Timeline: The fixed price model usually includes a predetermined timeline for project completion. Both parties establish a clear understanding of the project’s expected duration, taking into account any deadlines or time-sensitive requirements.
4. Cost Certainty: The primary advantage of the fixed price model is that it provides cost certainty to the client. The agreed-upon price remains fixed throughout the project, regardless of any potential changes or challenges that may arise during its execution.
5. Deliverable-Based Payments: In many cases, payments in the fixed price model are linked to the completion of specific project deliverables or milestones. Payments are typically made in installments or upon achieving predetermined project milestones, providing transparency and ensuring that the client only pays for the completed work.
6. Change Control: While the fixed price model offers cost certainty, any changes or additions to the original scope of work may result in additional costs. Change control mechanisms are established to handle any change requests or modifications to the project, ensuring that both parties agree on the adjustments in terms of cost and timeline.

The fixed price model is often suitable for projects with well-defined requirements and a clear understanding of the expected outcomes. It provides clients with a predictable budget and minimizes financial risks associated with unexpected costs. However, it may require careful scope definition and change management to accommodate any potential changes or deviations from the initial project plan. Effective communication and collaboration between the client and service provider are crucial to the success of the fixed price model.

Time and material model

The time and material (T&M) model is a pricing and project management approach commonly used in software development and other professional services. In this model, the client pays for the actual time spent by the service provider’s resources, as well as the cost of materials or expenses incurred during the project.Time and material model is the most common engagement model used by software development companies. It is used in situations where the client does not know what exactly they want and leave it to the company to decide what is best for them. The company charges for the time spent on development, but also includes additional costs such as training, maintenance or even hosting costs if needed. The advantage of this model is that there are no fixed costs involved, which means that you can change your mind about certain features during development without having paid anything upfront.

Key aspects of the time and material model include:

1. Hourly Rate or Resource Rate: The service provider charges an hourly rate or resource rate for the time spent by their team members working on the project. Each resource’s rate is typically based on their skill level and expertise.
2. Transparency and Flexibility: The T&M model offers transparency as clients have visibility into the actual hours worked by the service provider’s resources. It provides flexibility to accommodate changes or modifications to the project scope during its execution.
3. Tracking and Invoicing: The service provider maintains detailed time tracking records to accurately calculate the billable hours. Invoices are generated based on the hours worked, along with any additional costs for materials or expenses incurred, such as software licenses or hardware purchases.
4. Agile Project Management: The T&M model often aligns well with agile project management methodologies. It allows for iterative development and frequent feedback loops, enabling clients to actively participate in the project and make adjustments based on evolving requirements.
5. Cost Control: While the T&M model does not provide a fixed price for the project, it offers cost control by allowing clients to define budget limits or maximum spending thresholds. This ensures that costs are managed within the agreed-upon budget and provides a degree of financial control.
6. Change Management: As the T&M model allows for flexibility and changes during the project, change management processes should be established to handle any modifications to the scope of work. Any adjustments to the project’s scope or objectives may result in additional hours or costs, and these changes should be communicated and agreed upon by both parties.

The time and material model is suitable for projects with evolving or unclear requirements, where flexibility and adaptability are crucial. It provides clients with the ability to make adjustments to the project as needed and pays for the actual work performed. Effective communication and collaboration between the client and service provider are essential for managing expectations and ensuring successful project delivery within the agreed-upon budget and timeline.

How to Select The Right Engagement Model?

When selecting the right engagement model, consider the following factors:Project complexity. The more complex your project is, the more likely it is that you need an agile approach. Complexity can be defined by many things; for example, if you are building something new or working in an industry where there is little precedent for what you’re trying to do then your project will likely be more complex than if you were just adding functionality onto existing systems and processes. If your organization doesn’t have much experience with agile methods (or any other methodologies), then starting small may be wise so that everyone can get used to working together in this new way before taking on larger projects later on down the road when they have gained some experience under their belts/

• Project size. Agile approaches work best for projects that are relatively small in scope and duration. This means that you probably shouldn’t try to use them for projects where there is no clear end in sight; instead, you should consider other methods like waterfall or RUP.
• The team. As with any methodology, the size and experience level of your team will play a large part in how well it works for you. If you have never used an agile approach before then starting small may be wise so that everyone can get used to working together in this new way before taking on larger projects later on down the road when they have gained some experience under their belts.The team. As with any methodology, the size and experience level of your team will play a large part in how well it works for you. If you have never used an agile approach before then starting small may be wise so that everyone can get used to working together in this new way before taking on larger projects later on down the road when they have gained some experience under their belts
• The project scope. Agile approaches work best for projects that are relatively small in scope and duration. This means that you probably shouldn’t try to use them for projects where there is no clear end in sight; instead, you should consider other methods like waterfall or RUP.
• The project environment. Agile approaches work best for projects that are relatively small in scope and duration. This means that you probably shouldn’t try to use them for projects where there is no clear end in sight; instead, you should consider other methods like waterfall or RUP

Conclusion

We hope that this article has helped you understand the different engagement models, their pros and cons. It is important to remember that there is no one-size-fits-all approach when it comes to selecting an engagement model. The right engagement model depends on the type of project, budget constraints and other factors such as availability of resources or timelines involved in completing work within deadlines.