Isnt fixed price work more expensive than an hourly effort?
Not necessarily. If you take everything into account, paying for a solution by the hour is often like a credit card bill. Its a small sum every month, but it takes 42 years to pay off entirely. Its also a process that is completely adverse to getting things done quickly or efficiently. Take a look at the project comparison. If you take into account the revenue or productivity lost due to schedule slips, fixed price work, delivered on time, will result in a major savings. Q: I had a company that specialized in the development of text annotation systems do one for me. It took no longer than it would have in-house, and at a lower rate. Would Wolf Rock have done it for less? A: Probably not. For the same reason we have invested in tools to automate the development process, some companies stick to a single area of expertise. Typically they have an existing system that they edit to fit the needs of each company that wants a similar system. The pricing model they might apply is to bill for so
