Business Engagement Models

What is an engagement model?

The contractual agreement which represents the type of business relation between the client and the outsourcing/offshore partner is known as the commercial engagement model or just business engagement model.


Depending on the current business needs of a particular enterprise the offshore partner will recommend a bespoke business engagement model. The outsourcing partners offer flexibility and freedom that simplifies on deciding the right engagement model that will support the business goals.

Consider following factors before you choose an engagement model. So, prior to selecting a business engagement model here is what you should do:

  • Mapping out the activities related to the project beforehand will contribute in meeting the target on time. That means, prior to selecting the right engagement model you should have your plan ready.
  • By keeping the expectations clear related to the project will clear out the confusion.
  • Building a strong and transparent relationship with your outsourcing partner will result into clear and efficient business processes. Therefore focus on offshore partners who believe in providing quality and transparent services.
  • Keeping an eye on the possible challenges related to the project will help in choosing the right engagement model to achieve best result.
  • Select a suitable SLA (Service Level Agreement) for completing the project development as per the contract.

Engagement models can be customized and are of various types. The most popular engagement models are described below:

Fixed Cost or Project Based Model:

For small and medium level projects where schedules, requirements and specifications can be easily determined and stipulated, the fixed cost engagement model works best. This engagement model is efficient if you focus more on the desirable result rather than the methodology used. On client’s approval the service provider will define the project delivery schedule within the given budget.

This engagement model is a low-risk business model especially when you already have well-defined project requirements and suitable methodology to manage the project. It is best to discuss and estimate the project details and cost at the start of the engagement model as the pricing and scheduling can alter once the project is concluded and you want to get some changes done.

Time & Material Model:

The Time & Material model is most suitable for the projects that require flexibility. Time and Material engagement model is favored by many clients since it allows you the control over cost and development progress of the project. This type of business model is successful for software projects that lack complete vision of the final product.

This negotiable engagement model allows you to choose monthly, weekly, daily or hourly rate to pay for the resources (tasks, material and expenses etc.) that have been used during the development phase. The Time & Material model is suitable if your project specifications are not clearly defined also requirements are not precise. T & M model is suitable for services like web design, content management, python development, server setup, JavaScript development, and HTML5/CSS styling.

Dedicated Team Model:

In this type of business engagement model, the outsourcing partner provide a team of skilled and expert IT professionals to contribute by enhancing the project progress by sharing the workload and reinforcing the existing team. The selected team of dedicated professionals will cater to the project requirements by giving their undivided attention. While outsourcing partner is responsible for recruiting and administering the dedicated team, you are given the control over the team and project.

It is one of the simplest and hassle-free engagement models. You will have pay your monthly project charges on the basis of the number of dedicated team members are hired. If you have a long-term project then probably Dedicated Team Model will work best for you. This type of model is successful in scenarios when client’s team require extra skills and expertise to accomplish the project goals. The dedicated team offers unique and project-relevant solutions.


When deciding on an engagement model to support your business projects, you can check the important factors, requirements, expectations, time, and budget and accordingly choose the business model that will fulfill the needs. Regardless of the type of engagement model you choose, you will get benefits like experienced tech-savants with deep knowledge of various domains, diverse technical platter and services to choose from for supporting your project, also scalable and custom made solutions and services. Stay tuned for our future blogs!!!