Time and Material
Time and Material is a popular way of accounting for projects in software development. This model allows for flexibility and transparency of work and its scope. It is particularly useful when the software project is at an early stage and assumes many changes.
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).