When you outsource software development, the engagement model matters as much as the team. The same project can go smoothly on one model and painfully on another. Here is how the three common models work, when each one fits, and what to ask before you choose.

Fixed-price project

You agree a defined scope, a timeline and a price before work starts. Payments are tied to milestones, and you see a working demo as the project moves.

When it fits

  • The scope is clear and unlikely to change much: a business website, a booking system, a well-specified internal tool.
  • You need a firm budget approved in advance.
  • You want the partner to carry the delivery risk.

What to watch

Fixed price only works with a written scope. Anything outside it becomes a change request, so agree up front how changes are priced. Ask whether bug fixes after launch are included, and for how long.

Dedicated developer

A full-time engineer works as part of your team: your stand-ups, your board, your priorities. You pay monthly, and you can usually scale up or down with notice.

When it fits

  • You have a product with an ongoing roadmap rather than a single project.
  • Priorities change often and you want to steer week by week.
  • You have someone in-house, such as a CTO or product owner, who can direct the work.

What to watch

You carry more of the management load. Without clear priorities, even a strong developer loses time. Agree overlap hours, a daily written update and a regular demo.

Hourly and small tasks

You pay only for hours worked, with detailed time reports and no minimum commitment.

When it fits

  • Bug fixes, small features and maintenance on an existing system.
  • Trying a new partner on low-risk work before committing to more.

What to watch

Hourly work is hard to budget for larger features. Ask for an estimate per task, and review the time reports.

A simple way to choose

  • Clear scope and a firm budget: fixed price.
  • Ongoing roadmap and changing priorities: dedicated developer.
  • Small, irregular jobs: hourly.

Many good partnerships combine models. A short fixed-price discovery phase produces a written scope and a clickable design. The build then runs as a fixed-price project or with a dedicated team, depending on how stable the scope turned out to be. After launch, an hourly or monthly maintenance plan keeps the system secure and up to date.

Questions to ask before you sign

  • Who exactly will work on my project, and can I meet them?
  • What happens if a developer leaves or falls ill?
  • How are change requests estimated and approved?
  • Is testing included? Is deployment included? Is there a bug-fix period after launch?
  • Who owns the code, and where does it live during the project?

See our engagement models and starting prices on the pricing page, get a rough figure from the cost estimator, or talk to us about which model fits your project.