Fixed Bid Pricing

Presentation Contents The Fixed Bid Pricing Model Fixed Bid Process How it works? Definition Discovery Start-up Execution What you get ? Our Expectations Quality Management Closure Potential Project Risks The Fixed Bid Savings What is in it for you? The Cost / Fee Reach us Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Fixed Bid Pricing Commonly known as the “fixed price” model, here, both of us agree on a price and you pay this fixed price for the set of products that we produce and Deliver for you. This is a very widely used outsourcing arrangement and is used when the scope of the project is crystal clear and when resources, time, material and processes are already defined. What You Get? Low perceived risk (but actually high risk, since he will have to live with our design) Budget predictability Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

The Strategy When Fixed Bid Pricing is a strategy followed when the project scope, specification and implementation plans are all known and requirements are not subject to any change during the project implementation process. What The cost of software development includes the cost of development at a pre-negotiated and mutually agreed price. You don't have to be worried about hiring manpower/resources, or setting up infrastructure facilities such as computer equipment, backup electricity, A.C., security personnel etc.) and management support to prepare it to work. All of this taken care of by us and you are billed at regular, predefined time intervals at the pre-decided cost and no more. Requirement Fixed Bid Pricing requires you to cover the cost of taking responsibility and the costs of potential risk to the project. Empowerment This strategy empowers you to be fixed on both scope and price. Your specifications cannot be altered and the software development process is undertaken in a more disciplined and proactive manner. Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

How it works Process Definition Discovery Start-up Execution Closure Supporting Processes/Templates Management for: Metrics Template RFP Template Project Status Schedule Summary Template RFP Checklist Post Project Communication Monthly Project Fixed Price Checklist Discovery Report Review Report Issues Review Agenda Vendor Evaluation Template Template Risks Mini-Audit Checklist Change Checklist Acceptance Full-Audit Quality Checklist Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Definition Define fixed bid project Definitive Yes enough (Fixed Price Checklist) No Identify Create More and and Vendor Receive definition distribute Develop approve questions and Select available request evaluation request and evaluate vendor(s) Yes for criteria for answers responses proposal to proposal No vendors Plan for fixed price discovery phase and request fixed price bid for overall project Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Discovery You give us an opportunity to address your risks/Assumptions/Concerns We hold three primary sessions Management Sessions We identify and confirm the Organization, Management Approach, Scope of Effort, Critical Success Factors Operational Sessions This is designed to help us understand how all the pieces fit together and we get the big picture We understand the technical characteristics of the environment User Sessions Confirm the information provided by the user and highlight any discrepancies for clarification and discussion Define business expectations and requirements Understand the interfaces between the business and user groups Wrap-up Sessions And Deliverables Revised Fixed Price Proposal Fully defined in/out of Scope Defined Critical Success Factors Technical Approach Revised Schedule Benefit - Evaluating Your Comfort Level Decision Time Move forward or re-bid Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Start-up – Who / What / When / How Who Roles and Responsibility Technical And Scope and How Critical What Management Statement of Work Approach Success Factors Schedule When Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Start-up – Schedule Management Rolling up everything under the fixed price projects to a deliverable and creating plans based upon these deliverables Tracking of the project completion percentage Correct estimate for completion of tasks Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Start-up – Communication Management Details all regularly scheduled reports and meetings We include the following here: Document/Report name Recipient Purpose/Description Process Person responsible Frequency Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Start-up – Issue Resolution Issue Vs. Risk The difference Issue… Already impacting the cost, time or quality Risk… Potential negative impact to project Reality… Very little time spent on risk!!! Issue Management Anyone can raise an issue Issue log should include: Description Impact Initiator Date originated Owner Updates Final Resolution Review log weekly Closed only after initiator is comfortable with resolution Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Start-up – Risk Management iBoss follows the best practice communicating known risks early This involves four steps 1. Identify risk 2. Prioritize risk Probability of risk happening Impact of risk Focus… most likely to happen with biggest impact 3. Define proactive mitigation strategies/actions 4. Monitor progress of the mitigation actions weekly Result: Active Management of Shared Risks by all Parties Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Start-up – Change Management Three Kinds of Change Request Compliance Change to something approved… the “Box” Example: Additional requirements on-Compliance Something did not happen as planned Example: SME’s (Subject Matter Experts) not available as planned Informational Reset or change… no impact to schedules/cost Example: Organizational change Reality… change will happen !!! We always recommend change budget of 20% We avoid scope creeps and follow a consistent process for changes towards any part of the project. Our Processes: Define approval authorization Define timely decision-making Define escalation Make clear that no work would be done until approved!!!! Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Start-up – Acceptance Management We believe that deliverables are building blocks that move project forward and have a streamlined acceptance management process. For acceptance, iBoss always: Defines acceptance processes and criteria in advance of the project Defines approval authority Defines that the approvals will be taken in writing only iBoss has an acceptance, rejection and escalation process for reviews, walkthroughs, etc too. Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Execution - Project Control and Risk Planning iBoss believes that you can’t get better until you accurately know where you are. This is why we: Keep the metrics very simple and evaluate the trends as the project progresses We gather the facts in advance and look for potential issues that we communicate weekly We understand the impacts on the end-user of your product, hence we identify projects that: Exhibit poor project performance data Exhibit conditions that may lead to dissatisfaction Have significant risk Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

What you get? Properly trained and experienced Project Managers Timely Delivery Defined Change Request Process Good satisfaction rating from your audit New and accurate data reporting A high morale, team skills and quality Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Our Expectations Timely approvals Organized change requests Timely Audits as per Audit Action Plan Contact availability Adherence to meetings and session schedules Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Quality Management Initial-Audit Within first 30 days Review project planning Ensures things are done correctly from the beginning Mini-Audit Ensure project is operating according to standards Quarterly throughout project Full-Audit Provide extensive review of project to determine What is being done well Identify real or potential problems Suggest specific corrective actions Once a year iBoss Tech Solutions is compliant to ISO 27001 processes for data security and ISO 9001 processes for quality assurance Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Closure Achieve Final Sign-off Post Project Audit Identify what went well and areas of improvement Verify all deliverables and Change Control documents officially accepted Should be final activity within Project Plan Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Potential Project Risks 1. Overall 4. Break the Job Down New Technology • Large/Small Project Functional Complexity • Size of Team New vs. Replacement • Geographic Dispersion Leverage on Company • Reliability of Personnel Intensity of Business Need • Availability of Support Organization Interface Existing Applications • Availability of Champion Number of User Departments • Project Manager Availability 2. People 5. Change Procedure Staff Availability • Vulnerability to Change Commitment of Team • Stability of Business Area Team Morale • Organizational Impact Applications Knowledge • Tight Time Frame Client IS Knowledge • Turnover of Key People Technical Skills Availability • Change Budget Accepted Staff Conflicts • Change Process Accepted Senior Management Commitment • Charge Back System Project Manager Experience • Accountability for Change 3. Estimate Time & Costs 6. Acceptance Criteria Quality of Information Available • Level of Client Commitment Dependability on other projects • Client Attitude toward IS Conversion Difficulty • Readiness for Takeover End-date Dictate • Client Design Participation Conflict Resolution Mechanism • Client Participation in Acceptance Continued Budget Availability • Client Proximity to IS Project Standards Used • Acceptance Process Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

The Analysis Mode of Operation Annual Costs 65 % Savings On-Site US $ 1.44 mil Fixed Bid Engagement US $ with iBoss 662.4 K (rates dependent on project scope and requirements) Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

What is in it for you? Fixed bids allow you to do better forecasting You don’t pay for our learning curve Fixed bids sever the link between your time and your fee Fixed project bids force you to be more thorough and efficient Fixed bids force you to share the risk Fixed bids force you to sharpen your time and project management skills Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Cost / Fee Estimate Hours per resource per deliverable plus margin – Average 30% - 50% across team Fixed Price Premium Cost of taking responsibility – Average 25% Assumptions / Risks Cost of potential risk to the project, priced individually for individual deliverables – Average 15% Know the rates today enquiry@ibosstechsolutions.com Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Typical Fixed Bid Pricing Model - Example Original Fixed Price Risk Final Estimate Premium Premium Estimate (25%) (15%) Deliverable #1 100,000.00 25,000.00 15,000.00 140,000.00 Deliverable #2 200,000.00 50,000.00 30,000.00 280,000.00 Deliverable #3 200,000.00 50,000.00 30,000.00 280,000.00 Deliverable #4 200,000.00 50,000.00 30,000.00 280,000.00 Deliverable #5 200,000.00 50,000.00 30,000.00 280,000.00 Deliverable #6 100,000.00 25,000.00 15,000.00 140,000.00 Totals 1,000,000.00 250,000.00 150,000.00 1,400,000.00 Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

We're easy to talk to - tell us what you need. India Office B-59, 1st Floor, iBoss Tech Solutions Pvt. Ltd. Sector 63 Noida – 201301,(NCR Delhi) India Phone: +91-120-3937314 US Phone: +1-818-337-4553 UK Phone: +44-208-819-9751 Website: www.ibosstechsolutions.com USA Office Email: enquiry@ibosstechsolutions.com 6916, Castle Peak Drive, West Hills, CA 91307 Copyright 2009 iBoss Tech Solutions Pvt. Ltd.. All rights reserved.

Fixed Bid Pricing

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