This model is predictable and reliable, as anything beyond the pre-discussed budget is literally ‘problems of the service provider’. Costs do not rise due to newly emerged factors, yet such processes still lack a touch of flexibility up-to-date applications may require. Due to possible risks service providers obligate to, this business model may be slightly more expensive in terms of particular, risky pieces of the project.
If you are fully aware on what exact solution you require, you have invested time and resources into analyzing the market and harvesting feedback from potential users; you know the exact amount of money you are willing to invest as well as the time when you will require the solution – a Fixed Cost model of cooperation is exactly what you need. This model may become an astonishing tool in achieving success, yet you must choose wisely and be sure your business will profit from the Fixed Cost model.