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Engagement Models for Software Development

One size doesn’t fit all—especially in software development. Yellow offers flexible engagement models tailored to your needs. Whether you’re launching a new startup, scaling a growing business, or tackling a complex enterprise project, we’ve got the right approach to deliver results on your terms.

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How to Choose the Right Engagement Model

Selecting the right engagement model for your software development project is crucial for aligning your business goals with budget, timelines, and deliverables. Here are the main criteria you should consider when choosing the right cooperation model:

Project size & complexity

Define the scope of the project.

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Project size & complexity

Define the scope of the project.

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Budget flexibility

Choose between hourly and fixed-price payment structures.

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Budget flexibility

Choose between hourly and fixed-price payment structures.

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Level of control desired

Assess how much control you want over the project and your preferred level of involvement.

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Level of control desired

Assess how much control you want over the project and your preferred level of involvement.

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Long-term needs

Decide if you require ongoing support, scalability, and post-launch maintenance.

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Long-term needs

Decide if you require ongoing support, scalability, and post-launch maintenance.

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Project-Based Model

How it works

A project-based model is a contractual approach where the client and Yellow agree on the scope, timeline, and costs for a specific project upfront. This model is ideal for clients with well-defined project requirements (SRS), limited budgets, and clear outcomes.

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How it works

A project-based model is a contractual approach where the client and Yellow agree on the scope, timeline, and costs for a specific project upfront. This model is ideal for clients with well-defined project requirements (SRS), limited budgets, and clear outcomes.

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Best for

Short-term projects, building an MVP for startups, modernizing a legacy system, developing a standalone application with predefined functionality.

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Best for

Short-term projects, building an MVP for startups, modernizing a legacy system, developing a standalone application with predefined functionality.

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Advantages

Reduced management efforts from your side.
Clearly defined costs and timelines.
Suitable for businesses with limited technical expertise.
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Advantages

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Challenges

Limited flexibility to accommodate changes once the project begins.
Requires well-defined initial requirements to avoid scope creep.
Fixed deadlines can reduce innovation.
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Challenges

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Outstaffing Model

How it works

You hire external developers or an entire team that works as part of your in-house team. These professionals are employed by Yellow but work exclusively on your project under your direct supervision. You manage their daily tasks and the workflow, while we handle administrative aspects like payroll and legalities.

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How it works

You hire external developers or an entire team that works as part of your in-house team. These professionals are employed by Yellow but work exclusively on your project under your direct supervision. You manage their daily tasks and the workflow, while we handle administrative aspects like payroll and legalities.

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Best for

Companies needing to scale their in-house team quickly or access specific technical expertise without long-term commitments.

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Best for

Companies needing to scale their in-house team quickly or access specific technical expertise without long-term commitments.

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Advantages

Direct control over team members and development processes.
Access to a broader talent pool without recruitment overhead.
Cost-efficient compared to building an in-house team.
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Advantages

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Challenges

Management responsibility lies with you.
Differences in time zones and/or cultural expectations can cause misunderstandings.
Aligning external staff with internal team culture and workflows can be challenging.
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Challenges

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Dedicated Team Model

How it works

We allocate a full-time team of skilled professionals who work exclusively on your project. The team operates as an extension of your business, fully aligned with your goals and processes.

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How it works

We allocate a full-time team of skilled professionals who work exclusively on your project. The team operates as an extension of your business, fully aligned with your goals and processes.

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Best for

Long-term projects requiring ongoing development and collaboration.

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Best for

Long-term projects requiring ongoing development and collaboration.

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Advantages

You take full control over the team.
You can easily scale the team size up or down based on project needs.
Teams become deeply familiar with your project and workflows over time.
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Advantages

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Challenges

If the workload fluctuates, dedicated team members might experience idle periods.
Costs can be significant upfront compared to ad-hoc hiring.
You must invest time and effort in managing the team effectively.
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Challenges

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Key Differences of Engagement Models

When choosing the right engagement model for your project, it's important to understand the key differences between outstaffing, project-based, and dedicated team models. Outstaffing involves hiring external professionals who work under the client's management, with the outstaffing provider handling administrative tasks. Project-based engagements are focused on delivering specific outcomes within a set timeframe and budget. In contrast, dedicated teams work exclusively on a client’s projects, acting as an extension of the client’s internal team, with a high level of integration and control for an extended period.

AspectOutstaffingDedicated TeamProject-based
ManagementClientShared/ProviderProvider
ControlFullHighLow
FlexibilityHighMediumLow
CostsPay for resources onlyTeam + management overheadFixed cost

Pricing Models

Here are the common pricing models used in Yellow for software development projects:

Time and materials based on hourly rate

The client is billed based on the actual number of hours spent by each team member.

Best for: Mid/long-term projects, undefined scope, or ongoing support.

Advantages: Flexibility, transparency in billing.

Challenges: Uncertainty in overall cost, harder to predict total expenses.

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Time and materials based on hourly rate

The client is billed based on the actual number of hours spent by each team member.

Best for: Mid/long-term projects, undefined scope, or ongoing support.

Advantages: Flexibility, transparency in billing.

Challenges: Uncertainty in overall cost, harder to predict total expenses.

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Fixed price

A set price is agreed upon for the entire project, regardless of time spent.

Best for: Well-defined projects with a clear scope.

Advantages: Predictable cost, no surprises.

Challenges: Less flexibility for scope changes.

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Fixed price

A set price is agreed upon for the entire project, regardless of time spent.

Best for: Well-defined projects with a clear scope.

Advantages: Predictable cost, no surprises.

Challenges: Less flexibility for scope changes.

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Whether you need a dedicated team, project-based support, or scalable outstaffing, we’ve got a model tailored for your needs.

Testimonials

Here’s what our clients think about us.

oppsites logo

The new features have been well received by users. Attentive and flexible, the team excelled at responding to stakeholders in a timely matter. Their technical expertise allows them to propose valuable solutions.

Ian Ross

Ian Ross

CEO, OppSites

famlicious logo

Engaged, supportive, and invested in project success, the team offered constructive criticism, creative guidance, and honest communication. Their user-centered approach resulted in a unique and reliable product that operates well on all systems.

Jim Barkow

Jim Barkow

Founder, Famlicious Inc.

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Because of marketing costs, the B2C application fell out of use in favor of a different B2B tool. Yellow was very focused on customer satisfaction, and they participated regularly in standups. They helped solidify features, and they thoroughly explained their process.

Sandro Tuzzo

Sandro Tuzzo

CEO, Separate.us

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We’re impressed with their loyalty and honesty. They were able to stay true to their original quote even though we needed to change and add a few requirements. They’ve done a lot of good work for us on all fronts, but it's amazing to see that they’re able to stick to what they initially promised.

Jon Shower

Jon Shower

CEO, BlackBird

qkss logo

Mainly, I go by client feedback to judge Yellow’s performance, and the clients have been very impressed with their work. The team is exact in what they do, their delivery has been good, and they’re on time and budget.

Adam Plager

Adam Plager

CEO, QKSS

coverium logo

Their performance was good. I didn’t expect that kind of performance from someone working offsite. I was happy that they completed the project ahead of schedule, so we had some time left to work on additional projects and improvements.

Max Abukhovsky

Max Abukhovsky

CEO & Founder, Coverium

hyvery-inc logo

When Yellow is working on a task, they understand how it will impact the product down the line. The team has provided great insight into our processes, making sure we don’t make small mistakes that will impact us in a larger way in the future.

Christopher Bianc

Christopher Bianc

CEO, Hyvery inc.

dealstryker logo

They were very accessible regardless of the time difference as well as communication was good. We had a couple bumps here and there regarding designs that were not originally discussed in our UX/UI designs but they were quick to find solutions as well as any needed changes we requested.

Bradley J. Humble

Bradley J. Humble

Co-Founder & CTO, DealStryker, Inc.

Why Yellow

With Yellow, you will receive top-tier software development experience and get a solution that meets all your business needs.

Security you can trust

We take your project security seriously. We apply robust encryption protocols and ensure strict compliance with industry standards to protect your intellectual property and sensitive information at every stage of development. Your trust is our priority.

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Security you can trust

We take your project security seriously. We apply robust encryption protocols and ensure strict compliance with industry standards to protect your intellectual property and sensitive information at every stage of development. Your trust is our priority.

Read more

Business-first approach

We don’t just build software—we solve business problems. By understanding your goals, challenges, and target market, we deliver solutions that drive real value. Whether you’re aiming for growth, efficiency, or innovation, we focus on outcomes that matter.

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Business-first approach

We don’t just build software—we solve business problems. By understanding your goals, challenges, and target market, we deliver solutions that drive real value. Whether you’re aiming for growth, efficiency, or innovation, we focus on outcomes that matter.

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Proven experience

With 10+ years of experience across industries, our team has delivered more than 200 successful projects worldwide. We combine technical expertise, creativity, and proven processes to bring your vision to life on time and within budget.

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Proven experience

With 10+ years of experience across industries, our team has delivered more than 200 successful projects worldwide. We combine technical expertise, creativity, and proven processes to bring your vision to life on time and within budget.

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Answering questions

What engagement model is best for my project?

It depends on your project’s scope, budget, and flexibility needs:

  • Outstaffing/Dedicated Teams: Great for scaling resources or long-term projects.

  • Project-Based: Perfect for standalone tasks with specific deliverables.

If you're unsure, we can help you choose the right model.

How do you ensure transparency in pricing?

Our pricing structure is straightforward and tailored to your chosen engagement model. You'll receive a detailed breakdown of costs upfront.

How do you handle confidentiality and security?

We sign NDAs and follow industry best practices for data protection, secure coding, and IP rights. Your project is safe with us.

What if I need ongoing support after the project is delivered?

We offer post-launch support and maintenance services to ensure your software continues to perform optimally.

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