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ENGAGEMENT MODELS
Fixed Price
Time and Materials (T&M)
When to use
Pros and Cons
ODC vs. Staff Augmentation
Engagement Types Working Models
Collaboration in general
Day-to-day operations
3 Working Models
Information Flow
5 Roles
Hands-on Experience
Skills Statistics
Resources Offering
Engagement Types
Fixed Price vs. Time & Materials
Factor to compare Fixed Price
vs.
Time & Materials
Payment:
Size of project:
Scope / Requirements:
Flexibility:
Client’s participation:
Methodology:
hours spent * unit price
medium & large
evolving
unlimited
significant
Agile
fixed
small & medium
defined
zero
little
Waterfall
Engagement Types Working Models Resources Offering
Fixed price
• Requirements are well defined
• Estimate and plan are accurate, no
need for changes
• Buyer requires quick turnaround
• Suitable for small and medium
projects like building a prototype,
an MVP (minimum viable product)
• Not work well in case changes
happen frequently
Time & Materials
• Requirements are unclear, subject to
be changed quite often
• Estimate is just for reference
• In case of urgency of deadline or staff
skills missing
• Suitable for medium to large projects
• Well adopted to changes driven
product / project
When to use
Picking up the right one is very important for project success.
Engagement Types Working Models Resources Offering
Risks about costs and time: on service provider
Fixed Price: Pros and Cons
Pros
• Allocated budget
• A clear picture about outcome vs. budget
(a defined scope and fixed budget)
Cons
• Zero flexibility
• Quality can be compromised within agreed
scope, time and cost
• Closed deal
 Easy to manage
 Not require close supervision / involvement
from buyer
 Changes are rarely incorporated, or with an
increase in costs / time
 It’s sometimes hard to agree upon what is
in scope, what is out of scope
 Can cause critical misleading point when the
buyer asks for additional functionality for free
 Little or no communication may result in
unsatisfactory deliverables
Engagement Types Working Models Resources Offering
T&M: Pros and Cons
Risks about costs and time: on buyer
Pros
• Flexibility (scope, time, cost)
• High quality and well-tested product, as
• Buyer can do whatever to accomplish
the scope
Cons
• Exceed the planned budget, as
• Increased hands-on management
 The service provider bills more than his spend
 Scope evolving is not well managed
 Easy to add/remove functions to/from
the scope
 Changes are rapidly taken into account
 Scope / requirements definition
 Project monitoring and controlling Buyer has full control on what he wants done
 Higher buyer’s involvement -> higher
satisfaction
Engagement Types Working Models Resources Offering
T&M in details
Both Offshore Development Center and Staff Augmentation share the
same advantages:
Replace staff temporarily unavailable
Offload customers’ IT requests
 Focus on core competencies
Meet peak-time demands
& Fulfill skill needs and
gaps
Engagement Types Working Models Resources Offering
Offshore Development Center (ODC) Staff Augmentation
Model type Strategic engagement, Result centric Tactical engagement, Resource centric
Engagement length
Pricing model Dedicated team & resources T&M (with exact numbers of hours spent)
Engagement scope Programs / Projects Tasks / Components
Team size Medium & Large (ten to thousands staff) Small (Up to several staff)
Managed by? Outsourcing vendor Client (with high involvement to supervise)
Creation enabled?
Contract structure Complex, Large Simple, Small
Scalability & Flexibility
Ease of adoption
Working model Offshore / Nearshore (Onsite at some extent) Onsite
T&M in details
Engagement Types Working Models Resources Offering
Working Models
Collaboration in general
At any level of details:
• 1 sentence business need, OR
• 1 A4 page written document, OR
• A professional requirement specification
Contact points
• Fluent in English
• Strong communications skills
• English-speaking oversea working experience
• Studied abroad or have a Master Degree with high
English proficiency
Engagement Types Working Models Resources Offering
Day-to-day operations
We normally meet in clients’ mornings
(US time), also in our mornings (clients’
evenings) at some extent
Topics: requirement clarification,
technical solution, status update,
general meetings, etc.
VOIP phones Video conference
Screen sharing Chat & Presence
Send the staff to work onsite
(requirement analysis, deployment,
support, etc.)
Clients also visit our office and work
with the team
Meeting means Project Management
tools
Engagement Types Working Models Resources Offering
Fixed Price Working Model
Engagement Types Working Models Resources Offering
Engagement Types Working Models Resources Offering
• Instalment #1
• Instalment #2
• …
• Instalment #n
Your requirements
Our analysis
Your feedback
Our proposal
Approval
Your solution
ODC Working Model
Engagement Types Working Models Resources Offering
Onsite
Offshore
Requirements
High Level
Design
Low Level
Design
Staging
Implementation
Testing
Support
User
Acceptance
Production
Engagement Types Working Models Resources Offering
Staff Augmentation Working Model
Engagement Types Working Models Resources Offering
RESOURCE
OFFBOARDING
• Internal review
• Client review
• Resource confirmation
• Knowledge transfer
• Project appraisal
• Customer satisfaction survey
• Activated client processes
• Monthly performance review
RESOURCE
REQUIREMENTS
Complete profile
RESOURCE
FULFILLMENT
RESOURCE
ONBOARDING
Engagement Types Working Models Resources Offering
Information Flow
Engagement Types Working Models Resources Offering
Account Manager VP of Delivery
Client
Developers
Project Manager
Solution ArchitectBusiness Analyst Quality Controller
Project Team
Client side
LARION side
Engagement Types Working Models Resources Offering
Resources Offering
• Extensive project management
knowledge: PMBOK, CMMI, Agile,
Scrum, RUP
• Guarantee project success
• With domain / industry specific
knowledge
• Organizational know how
• Strong communications skills
• Leadership to drive the team
• Strong cognitive ability
• Consultancy capability
Project Manager Solution Architect
• Expert in software architecture
following: TOGAF, RUP, CMMI, Scrum
• Technical pedigree and excellence
• Specialist risk management (security,
performance, scalability, etc.)
• Technical leadership
• Visualization & Formulization
• Consultancy capability
• Innovation
• Details oriented
• Lifelong learner
Engagement Types Working Models Resources Offering
Business Analyst
• Industry and domain expertise:
BABOK, UML, CMMI, PMBOK,
Software Testing
• Business process modeling
• Critical thinking and analytical
skills
• Consultancy capability
• Interpersonal skills
• Details oriented
• Customer point of view
Developer
• Software Development
knowledge: RUP, CMMI, Agile,
Scrum
• Continous integration
• Automated deployment
• Fullstack capability
• Strong development skills
• Problem solving
• Consultancy capability
• Teamwork
• Solution oriented
• Adapt and adopt quickly
Quality Controller
• Testing life cycle following:
ISTQB/CTFL – CTAL, CMMI, Agile,
Scrum
• Non-functional vs. functional,
Web vs. Mobile testing
• Automated testing experience
• Defect tracking systems
• Test analytics and report skills
• Consultancy capability
• Teamwork
• Details oriented
• Quality centric
Engagement Types Working Models Resources Offering
Requirement
Development
&
Process Modeling
Tools
Database Design
Tools
Hands-on Experience
Engagement Types Working Models Resources Offering
Frameworks
Languages
Hands-on Experience
Engagement Types Working Models Resources Offering
Payment Gateway
& Social APIs
Code Repositories,
Continuous
Integration
&
Auto-Deployment
Tools
Hands-on Experience
Engagement Types Working Models Resources Offering
Testing Tools
Cloud
&
E-commerce
Platforms
Hands-on Experience
Engagement Types Working Models Resources Offering
Skills Statistics
Engagement Types Working Models Resources Offering
BAs by Requirement Development tools
Skills Statistics
Engagement Types Working Models Resources Offering
BAs, SAs by Process Modeling tools
Skills Statistics
Engagement Types Working Models Resources Offering
SAs by Database Design tools
Skills Statistics
Engagement Types Working Models Resources Offering
Developers by Frameworks
Skills Statistics
Developers by Programming languages
Engagement Types Working Models Resources Offering
Developers by Scripting languages
(JS frameworks)
Developers by Payment Gateway APIs Integration Skills
Engagement Types Working Models Resources Offering
Developers by Social APIs Integration Skills
Engagement Types Working Models Resources Offering
Developers by Code Repository Skills
Engagement Types Working Models Resources Offering
Developers by Continuous Integration & Auto-Deployment Skills
Engagement Types Working Models Resources Offering
Developers, QCs by Functional Testing Skills
Engagement Types Working Models Resources Offering
Developers, QCs by Non-functional Testing Skills
Engagement Types Working Models Resources Offering
Developers by Cloud Platform Skills
Engagement Types Working Models Resources Offering
Developers by E-commerce Platform Skills
Engagement Types Working Models Resources Offering
Questions?
Thank you!
Call us for further information:
Address: Hall 5, Quang Trung Software City, Tan Chanh Hiep Ward, Dist. 12, Ho Chi Minh City, Vietnam
Telephone: (+848) 37 155 742 Email: info@elarion.com Website: www.elarion.com

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LARION Engagement Model

  • 2. Fixed Price Time and Materials (T&M) When to use Pros and Cons ODC vs. Staff Augmentation Engagement Types Working Models Collaboration in general Day-to-day operations 3 Working Models Information Flow 5 Roles Hands-on Experience Skills Statistics Resources Offering
  • 4. Fixed Price vs. Time & Materials Factor to compare Fixed Price vs. Time & Materials Payment: Size of project: Scope / Requirements: Flexibility: Client’s participation: Methodology: hours spent * unit price medium & large evolving unlimited significant Agile fixed small & medium defined zero little Waterfall Engagement Types Working Models Resources Offering
  • 5. Fixed price • Requirements are well defined • Estimate and plan are accurate, no need for changes • Buyer requires quick turnaround • Suitable for small and medium projects like building a prototype, an MVP (minimum viable product) • Not work well in case changes happen frequently Time & Materials • Requirements are unclear, subject to be changed quite often • Estimate is just for reference • In case of urgency of deadline or staff skills missing • Suitable for medium to large projects • Well adopted to changes driven product / project When to use Picking up the right one is very important for project success. Engagement Types Working Models Resources Offering
  • 6. Risks about costs and time: on service provider Fixed Price: Pros and Cons Pros • Allocated budget • A clear picture about outcome vs. budget (a defined scope and fixed budget) Cons • Zero flexibility • Quality can be compromised within agreed scope, time and cost • Closed deal  Easy to manage  Not require close supervision / involvement from buyer  Changes are rarely incorporated, or with an increase in costs / time  It’s sometimes hard to agree upon what is in scope, what is out of scope  Can cause critical misleading point when the buyer asks for additional functionality for free  Little or no communication may result in unsatisfactory deliverables Engagement Types Working Models Resources Offering
  • 7. T&M: Pros and Cons Risks about costs and time: on buyer Pros • Flexibility (scope, time, cost) • High quality and well-tested product, as • Buyer can do whatever to accomplish the scope Cons • Exceed the planned budget, as • Increased hands-on management  The service provider bills more than his spend  Scope evolving is not well managed  Easy to add/remove functions to/from the scope  Changes are rapidly taken into account  Scope / requirements definition  Project monitoring and controlling Buyer has full control on what he wants done  Higher buyer’s involvement -> higher satisfaction Engagement Types Working Models Resources Offering
  • 8. T&M in details Both Offshore Development Center and Staff Augmentation share the same advantages: Replace staff temporarily unavailable Offload customers’ IT requests  Focus on core competencies Meet peak-time demands & Fulfill skill needs and gaps Engagement Types Working Models Resources Offering
  • 9. Offshore Development Center (ODC) Staff Augmentation Model type Strategic engagement, Result centric Tactical engagement, Resource centric Engagement length Pricing model Dedicated team & resources T&M (with exact numbers of hours spent) Engagement scope Programs / Projects Tasks / Components Team size Medium & Large (ten to thousands staff) Small (Up to several staff) Managed by? Outsourcing vendor Client (with high involvement to supervise) Creation enabled? Contract structure Complex, Large Simple, Small Scalability & Flexibility Ease of adoption Working model Offshore / Nearshore (Onsite at some extent) Onsite T&M in details Engagement Types Working Models Resources Offering
  • 11. Collaboration in general At any level of details: • 1 sentence business need, OR • 1 A4 page written document, OR • A professional requirement specification Contact points • Fluent in English • Strong communications skills • English-speaking oversea working experience • Studied abroad or have a Master Degree with high English proficiency Engagement Types Working Models Resources Offering
  • 12. Day-to-day operations We normally meet in clients’ mornings (US time), also in our mornings (clients’ evenings) at some extent Topics: requirement clarification, technical solution, status update, general meetings, etc. VOIP phones Video conference Screen sharing Chat & Presence Send the staff to work onsite (requirement analysis, deployment, support, etc.) Clients also visit our office and work with the team Meeting means Project Management tools Engagement Types Working Models Resources Offering
  • 13. Fixed Price Working Model Engagement Types Working Models Resources Offering
  • 14. Engagement Types Working Models Resources Offering • Instalment #1 • Instalment #2 • … • Instalment #n Your requirements Our analysis Your feedback Our proposal Approval Your solution
  • 15. ODC Working Model Engagement Types Working Models Resources Offering
  • 17. Staff Augmentation Working Model Engagement Types Working Models Resources Offering
  • 18. RESOURCE OFFBOARDING • Internal review • Client review • Resource confirmation • Knowledge transfer • Project appraisal • Customer satisfaction survey • Activated client processes • Monthly performance review RESOURCE REQUIREMENTS Complete profile RESOURCE FULFILLMENT RESOURCE ONBOARDING Engagement Types Working Models Resources Offering
  • 19. Information Flow Engagement Types Working Models Resources Offering
  • 20. Account Manager VP of Delivery Client Developers Project Manager Solution ArchitectBusiness Analyst Quality Controller Project Team Client side LARION side Engagement Types Working Models Resources Offering
  • 22. • Extensive project management knowledge: PMBOK, CMMI, Agile, Scrum, RUP • Guarantee project success • With domain / industry specific knowledge • Organizational know how • Strong communications skills • Leadership to drive the team • Strong cognitive ability • Consultancy capability Project Manager Solution Architect • Expert in software architecture following: TOGAF, RUP, CMMI, Scrum • Technical pedigree and excellence • Specialist risk management (security, performance, scalability, etc.) • Technical leadership • Visualization & Formulization • Consultancy capability • Innovation • Details oriented • Lifelong learner Engagement Types Working Models Resources Offering
  • 23. Business Analyst • Industry and domain expertise: BABOK, UML, CMMI, PMBOK, Software Testing • Business process modeling • Critical thinking and analytical skills • Consultancy capability • Interpersonal skills • Details oriented • Customer point of view Developer • Software Development knowledge: RUP, CMMI, Agile, Scrum • Continous integration • Automated deployment • Fullstack capability • Strong development skills • Problem solving • Consultancy capability • Teamwork • Solution oriented • Adapt and adopt quickly Quality Controller • Testing life cycle following: ISTQB/CTFL – CTAL, CMMI, Agile, Scrum • Non-functional vs. functional, Web vs. Mobile testing • Automated testing experience • Defect tracking systems • Test analytics and report skills • Consultancy capability • Teamwork • Details oriented • Quality centric Engagement Types Working Models Resources Offering
  • 24. Requirement Development & Process Modeling Tools Database Design Tools Hands-on Experience Engagement Types Working Models Resources Offering
  • 26. Payment Gateway & Social APIs Code Repositories, Continuous Integration & Auto-Deployment Tools Hands-on Experience Engagement Types Working Models Resources Offering
  • 28. Skills Statistics Engagement Types Working Models Resources Offering BAs by Requirement Development tools
  • 29. Skills Statistics Engagement Types Working Models Resources Offering BAs, SAs by Process Modeling tools
  • 30. Skills Statistics Engagement Types Working Models Resources Offering SAs by Database Design tools
  • 31. Skills Statistics Engagement Types Working Models Resources Offering Developers by Frameworks
  • 32. Skills Statistics Developers by Programming languages Engagement Types Working Models Resources Offering Developers by Scripting languages (JS frameworks)
  • 33. Developers by Payment Gateway APIs Integration Skills Engagement Types Working Models Resources Offering
  • 34. Developers by Social APIs Integration Skills Engagement Types Working Models Resources Offering
  • 35. Developers by Code Repository Skills Engagement Types Working Models Resources Offering
  • 36. Developers by Continuous Integration & Auto-Deployment Skills Engagement Types Working Models Resources Offering
  • 37. Developers, QCs by Functional Testing Skills Engagement Types Working Models Resources Offering
  • 38. Developers, QCs by Non-functional Testing Skills Engagement Types Working Models Resources Offering
  • 39. Developers by Cloud Platform Skills Engagement Types Working Models Resources Offering
  • 40. Developers by E-commerce Platform Skills Engagement Types Working Models Resources Offering
  • 42. Thank you! Call us for further information: Address: Hall 5, Quang Trung Software City, Tan Chanh Hiep Ward, Dist. 12, Ho Chi Minh City, Vietnam Telephone: (+848) 37 155 742 Email: info@elarion.com Website: www.elarion.com