Cooperation Models in Software Development: What Is the Best?

Insights Success
2 min readApr 15, 2021

If you have decided to develop software without having your development team, it is clear you will need a contractor. Another thing is not clear: how to pay for this job? Which cooperation model to choose? What will be rational for you? Let us try to figure this out.

Popular Cooperation Models

To make it easier to understand this, we have prepared a list of cooperation models from which you will find out their advantages and disadvantages, and determine the best option for your business.

  • Dedicated Team

This cooperation model can provide you with a professional dedicated development team from Ukraine that will work on software solutions for your project. This model allows you to hire a team, taking into account the level of professionalism of each participant and the project budget. They use the monthly salary of all team members, as well as additional administrative costs to define the price.

The advantage of a dedicated team model is that the developers are at your complete disposal: you can set tasks to them, apply the individual development methodology, and even the corporate culture. For instance, you can hire a dedicated development team that will work in your office. The customer can exercise full control and management of the team, as well as regulate the workload.

However, there are also some cons. If working with insufficient instructions, a remote team can create a project based on its own preferences. However, such experiments can bring a new vision to the project.

  • Time and Material Project

This is a model in which the price is formed from the time spent by the team and materials for the development of the project. It is most often used when it is problematic to determine the exact cost of the finished product.


  • The customer is able to quickly change the plan or requirements for the final product.
  • T&M works well with modern agile methodologies like Scrum.
  • The opportunity to track the result at all stages, as well as monitor the progress and communicate with the team.


  • You cannot always define the budget in advance. It depends on the accuracy of given instructions or their changes during the work.
  • With this approach, developers may have to spend a lot of time communicating with the customer.

T&M is suitable for small medium-term projects that are carried out by a small team.

  • Fixed Price

It is a model in which a fixed price for specific services is already set. Unlike other cooperation models, fixed price is best suited for short-term projects.





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