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Engagement Models of Business | Agnos

Published on December 01, 2021


Understanding your Business

An understanding between two parties goes a long way in how they operate and perform. A strong sense of trust and understanding can prove to be extremely viable in the long-term scene. Constant problems with information conveyance or just a basic lack of trust might shoot forth a couple of results, but only for the short term. Both entities need to have some middle ground in the matter and should be able to see each other from the same level. 

Often, companies shake hands with multiple corporations for the betterment of their firm and their business affairs. Terms and conditions are signed, choice words are exchanged and many a time the founders blindly trust their partners based on faith. With how cutthroat the market is out there today, not very often does this situation prove fruitful. Undercut services, cheap materials, and shortcuts methods are used at full hand just so that these corporations can siphon off money from these honest men. To avoid this, every company today should take some time off to understand their needs as a unit and to mark out what areas need to be catered to and what don’t.

What are Engagement Models ?

Approaching novel entities for services need to be seen with a sharp set of eyes - every company operates differently and has different engagement models to the way they run their affairs. These are essentially how a software development company interacts and behaves with their clients based on factors such as time, goals, capital, project size and duration, and many more. They are also known as customer engagement models. This relationship is crucial to the client company as the partnership with the service provider needs to be both transparent and reliable. Engagement models in software development have different segments based on what type of micro-industry they are in. As a whole, there are three distinct types of engagement models - Fixed Price Engagement, Time & Material Engagement, and Dedicated Team Engagement.


Fixed Price Engagement

This involves a rigid framework that allows a smooth and simplistic workflow through all the operations. It specifies clear deadlines and timelines, ensuring that there is no scope of compensation shooting over or being in excess. Unfortunately, this engagement model is not very flexible and at times takes a long duration to compile and execute.

Time and Material Engagement

This model takes into consideration the time factor and material requirements that are in demand during the project. This engagement offers more flexibility, a low risk, and contains a negotiable budget for the client. The one downside to this engagement would be that keeping a low budget in these scenarios, is a little more difficult. Unlike the Fixed Price Engagement, this model will demand a full-fledged, round-the-clock team who will have to monitor the time which elapses during the project and to keep a tab of all the materials that are being consumed. Often due to the latter having availability issues as demand for it might fluctuate, the deadlines can sometimes lapse and create problems for huge projects with equally large budgets.

Dedicated Team Engagement

This engagement model of business is arguably the most effective out of the three. This conclusion is based on the fact that the client is not provided an entire service provider, but a unit of that service to cater to the client's needs. The team has an internal hierarchy that works based on a manager and employee report system. At times, having an internal social media marketing team completes this engagement. This keeps the system clean and prevents any problem with the delegation of tasks. Accountability and reliability from the service provider are higher based on this system, Outsourcing dedicated teams is a new fad in the startup industry as it proves to be effective for short-term goals and precision execution. Sometimes, problems arise due to a lack of control and can lead to confusion. Another con here would be the fact that the team as a majority work remotely and will have different ethnicities to them, causing a language barrier. One of the biggest issues that most clients have with this model is the fact that sensitive information is often passed in excess to the service team for better movement of tasks. If there is adequate trust from the client's side, this can be overlooked.

Aside from these three main models, We at Agnos follow a novel and proven model known as the Gain Share Business Model which essentially ties our compensation directly to how your business would like to achieve its goals. Based on how you as a client view the desired result, we will try our best to achieve them instead of having predetermined milestones and deliverables which can sometimes prove to be unrealistic.

Visit us at to get expert consultation and experience how we approach your business with the best model engagement there is.

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Tags: Entrepreneur

Samuel Levy

Samuel Levy
With an extensive background and deep leadership experience, Samuel Salomon Levy, CEO, is the brain and the decision-maker that guides every team across the company. CEO, Agnos
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