So, finally, your project idea is seeded and the product will start taking shape soon. The project idea, though, will evolve gradually, hence the requirement specs cannot be defined, resulting in difficulty in getting a fixed time estimate. So, what is the next step, how to take the project ahead for development, what type of team to get in place, and what billing model to work on?
is easier if you decide to go on with hiring an in-house team. But what
should be the billing model if the project is to be outsourced? In such
scenarios, the project execution has to be carried out on time and
material, a model where the payments are done based on how many hours
are logged in by the team in a fixed time period, say 15 days or a
month. Lots of clients are wary of this model for a simple reason: will
the logged hours be genuine and how can they be sure they will not be
overpaying. Read full blog here - How do you bill an offshore software development team?