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I've dealt with many outsourcers (TCS, Infosys, Accenture, IBM etc.) and WITHOUT EXCEPTION their business model is time and materials.
by GregQuinn 11y ago
I've dealt with many outsourcers (TCS, Infosys, Accenture, IBM etc.) and WITHOUT EXCEPTION their business model is time and materials.
- chkuendig 11y agoI know from first-hand experience that this isn't the case. Obviously T&M is the preferred contract structure for the service provider, but many projects get done on different metrics (fix-price, result-based, T&M with upper/lower bound etc.). It's quite a competitive industry, so a big client can negotiate for a different contract structure if the project allows it (obv. not for bodylease stuff). Also, your assumption about labour-cost arbitrage isn't completely true. Many external consultants (incl. developers) make better salaries than internal staff.