BSPOKE Software | Digital Transformation Partners

The Benefits of Hourly Rate Billing for Bespoke Software

Key Decision in Commissioning Custom Software

One of the key decisions clients face, when commissioning custom software, is how they will be billed for the services provided by their chosen software development company. While fixed-price contracts are one option, an alternative approach that offers several advantages is billing on an hourly rate basis. When building custom software, flexibility and adaptability are crucial. Hourly rate billing for bespoke software offers both, which is why it’s the preferred option for most of our clients.

Transparency and Flexibility in Project Costs

One of the primary benefits of hourly rate billing is the transparency it provides in project costs. Unlike fixed-price contracts, where the total cost is predetermined and may not accurately reflect the actual time and effort required for development.

This could result in two scenarios that would be detrimental to the client:

  • The client might overpay if the developer overestimates the project to safeguard against potential losses in the long run.
  • The project could exceed the original time estimate, prompting the developer to request additional funds beyond the agreed amount. Alternatively, an untrustworthy developer may resort to cutting corners to complete the project within the budget.

Hourly rate billing means clients only pay for the exact amount of time spent on each development task. This gives clients better control over their budgets, as they can see exactly where their money is being allocated enabling them to make informed decisions about project priorities and resource allocation.

At BSPOKE Software, we adopt a weekly billing cycle, providing clients with detailed timesheets accompanying their invoices. These timesheets outline the work undertaken by each developer, ensuring complete transparency throughout the project lifecycle. Reach out to us today to explore your needs and to book a software consultation.

Efficiency and Productivity

Custom software billed on an hourly rate basis, creates a productive environment for both developers and clients. This approach often leads to faster project completion and higher-quality results. Developers are motivated to maximise their efforts to provide exceptional value within the agreed-upon time frame. Additionally, hourly billing allows for flexibility in scheduling, empowering developers to adjust their work hours to accommodate the evolving needs or preferences of the client. This flexibility ensures that both developers and clients can work collaboratively to maximise the productivity of the project.

Adaptability to Changing Project Scope

Another benefit of hourly rate billing lies in its adaptability to evolving project scope and requirements. In the dynamic realm of software development, project priorities and needs often shift as new insights emerge or market conditions fluctuate. Hourly rate billing provides clients the freedom to adjust project scope and priorities as necessary, without being constrained by a fixed-price contract.

In contrast, a fixed-price contract requires agreeing on all work before development begins. Consequently, the contract does not accommodate internal company growth, workflow alterations, or changes in relevant legislation affecting the company. This implies that once the software is developed and released, addressing any such changes will immediately require additional development work and incur extra costs.

Continuous Development

With software development projects billed on an hourly basis, there’s no need to stop and start. The work flows continuously, addressing tasks as they arise. Gone are the days of estimating and quoting for each new feature; instead, projects seamlessly progress with dedicated developers assigned.

Whereas with fixed-price projects, developers are typically assigned for a set duration. Once they complete the project, they may be reassigned and could be unavailable for several months. If further functionalities or modifications are required, both the client and the development firm must undergo a series of estimates and quotes for each change. This procedure, coupled with the wait for developer availability, may lead to considerable delays.

Agile Software Development Methodology

Agile methodology is widely popular in software development due to its iterative and flexible approach, which aligns well with the dynamic nature of bespoke software projects. One key aspect of Agile is its emphasis on delivering working software in short, incremental cycles. This allows for continuous feedback and adaptation throughout the development process. This iterative approach enables teams to respond quickly to changes in requirements or priorities, leading to faster delivery of high-quality software that meets the evolving needs of stakeholders.

Why Hourly Billing is Particularly Suited to the Agile Approach

Weekly or monthly billing, syncs up with Agile software development perfectly. Just as Agile development works in cycles, this billing method creates a rhythm of assessment, adaptation, and progress. With hourly billing, changes can be made without the need to pre-calculate costs, allowing developers to proceed immediately.

Shows the agile development methodology, best suited for hourly rate billing for bespoke software

How BSPOKE Software Can Help

At BSPOKE Software, we understand the importance of transparency, flexibility, and efficiency in custom software development. That’s why we offer hourly rate billing for our bespoke software, this provides our clients the most cost-effective form of software development. With our proven track record of success and commitment to customer satisfaction, you can rely on BSPOKE Software to be your trusted partner in achieving your software development goals. Contact us today to learn more about how we can help bring your vision to life.

Developers with clock and hourglass represent the benefits of hourly rate billing for bespoke software.
Developers with clock and hourglass represent the benefits of hourly rate billing for bespoke software.

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