Cost Sheet

Pricing Details - Basis of Pricing

XEN offers forward-looking IT outsourcing engagement models to our clients that go over and beyond tactical outsourcing. These models offer the opportunity to accelerate outsourcing higher along the collaborative value chain. Broadly there are three engagement models that move from a low involvement, low control mode to a very high involvement, very high control mode.

These are:

	Full Time Equivalent (FTE)/Rate Card
	Fixed Price
	Time and Material (T&M) (According to Time and Requirement)

Advantages of FTE arrangement are:

	Highly flexible – Can follow any development life cycle
	Individual service components can be offered e.g. Analysis, Programming etc...
	Dedicated team – Knowledge management
	Lowest possible cost
	Client has a competent Project / IT manager on his side
	Client involvement is high
	Freedom to choose resources matching your requirements

This is a least cost option hence you'll have budget predictability and IP ownership. The dedicated team/individual working for you is highly flexible i.e. they can start with any level of expertise on the application. This places a high amount of control in your hands.

This model allows the clients to get a predictable budget for your project and considerably low perceived risk Fixed Price Model suits best for clients who wants fixed price for fixed scoped project. Typically asked for by clients with less project requirement clarity and offered by us only when we have high clarity on the requirement

The typical Features of this model are:

	Fixed Price / Bid
	Project base pricing
	Fixed Scope
	Familiar requirement (in cases where we have done similar projects on previous occasions) or clear requirement (typically detailed analysis & application design already completed)
	Will involve Project Management, User Interface Design, Devolvement, Quality Testing, Will NOT involve Project Analysis
	Stylus keeps the IP (Intellectual Property) rights of the product, but share full rights to use the software. However, if the application is fully designed when it reaches us, then we give the IP rights to the client.

Typically asked for by clients with less project requirement clarity and offered by us only when we have high clarity on the requirement. Advantages of this arrangement are low perceived risk and budget predictability

With the time and material engagement model, your costs and schedule will vary depending on your specific requirements and on the complexity of your project. This gives you maximum flexibility and also allows you to make substantial revisions to your project even as it is being developed.

The typical Features of this model are:

	Single Standard rate – X$/hr – irrespective of resource used
	Follows typical SDLC timelines (10 -15% -- Analysis, 10 - 15% -- Project Management, 10 - 15% -- User Interface, 40% -- Coding, 10% - 15% -- Testing)
	Ideal for small jobs/tasks based approach
	Client involvement is more
	Client keeps IP
	Less expensive then fixed

Advantages of this arrangement are that you have more control over implementation and it is highly flexible. This arrangement is advisable when requirements are being evolved. In addition, our business analysis team will be involved but it will turn out to be less expensive than actually fixed.