We are in touch with a prospective client who is planning to outsource their product development.
As a company, we decided to give it a try so that we can fund our own product which is under active development.
Having said that, we are unaware of the economics of project development as we all have background in SaaS product companies.
I have come to the conclusion that we should charge them on manpower basis i.e
$x per developer per month + $y where x is subjective to skills and experience and y = cloud infrastructure cost. The reason being that this is a long term project and therefore, we didn't want to get slowed down.
This is in contrast to the hourly task/project based approach.
As a company, we decided to give it a try so that we can fund our own product which is under active development.
Having said that, we are unaware of the economics of project development as we all have background in SaaS product companies.
I have come to the conclusion that we should charge them on manpower basis i.e $x per developer per month + $y where x is subjective to skills and experience and y = cloud infrastructure cost. The reason being that this is a long term project and therefore, we didn't want to get slowed down.
This is in contrast to the hourly task/project based approach.
Please advise.
Ive already asked the question here: https://news.ycombinator.com/item?id=16262865