Fixed Price is a less popular payment model for software development work. Fixed Price is less transparent and can often cause limitations on the scale of software development.
If you’re looking to outsource software development, there are essentially two pricing models you’ll come across in most software houses: time and material model and fixed price projects. It might not be immediately obvious which one to go for and a lot of myths have arisen around both. So if you’re in doubt about how to price your next project, read on to learn about what to watch out for – and why we recommend only one of the approaches (guess which).