Onshore Resources, Offshore Prices, Better Results.
Information Factory offers deliverable-based fixed pricing
We have developed an accurate estimating process based on engineering principles that allow us to quickly generate detailed, transparent fixed priced contracts. Our work is deliverable-based and backed up with quality assurances so you only pay for results! The resulting costs for data integration, and business intelligence are much lower than you currently spend.
Our contracts contain a detailed Bill of Materials which show your cost per report, cost per ETL workflow and cost per architecture object. Offshore vendors will sell you hours at low rates. At IF, we deliver business analytics that match your business requirements and are guaranteed defect free.
Offshore Math does not add up!
Offshore vendors want you to focus on low rates, but rates do not equal price. To determine the true cost of offshore you need to do the math:
Price = (Rate * Speed) + Quality + Overhead
Rate (R) is defined as the hourly cost of contractor resources. Don’t just look at the low offshore rates. You need to calculate the true “team” cost per hour. This can be easily calculated by creating an average rate for all consultants on the project both onshore and offshore.
Speed (S) is defined as how fast the team can build a deliverable. You need to monitor and track the hours required to develop specific artifacts/deliverables. You might want to calculate the cost of creating exacting specifications often required in order to communicate with offshore.
Quality (Q) is defined as the number of defects in the deliverable. You need to monitor the number of defects for each artifact and calculate the effort/rework required to fix the defects.
Overhead (O) is defined as the extra hours your onsite team spends in communication, coordination, and management with offshore.
To summarize:
Price is a function of Rate, Speed, Quality and Overhead:
In order to determine the price of the deliverable you are outsourcing, you need to calculate 4 variables:
- Rate
- Speed
- Quality
- Overhead
Do the math and you’ll find, as our customers have found, that our IF model adds up to lower cost, better quality and reduced risk.
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