Normally customer decides to outsource their software development needs when they don’t have an in house expertise to execute such projects, or to reduce the cost of development. So what does a customer expects when they decide to outsource their software development needs ?
Well, in many case the customer expects the vendor to create a solution for their problem or for their new business vision. But the vendor will charge on an hourly basis instead of charging for the solution they create.
Yes, the vendor provides a service but why charge for the hours spent? Customer didn’t came to us to pay for the hours we spent, he came to us to solve his business problem or to create new solution for his business vision. Though it’s a service that is being rendered this doesn’t have to happen in this way.
For example when we go to a Hospital to get a surgery done they will charge us for the surgery done as a complete package & not for the hours they spend. What happens if the Hospital charge us for the hours spent? Well, in that case the surgery will never get completed because they are getting paid for the hours spent & not for completing the surgery. It will be totally meaningless. But unfortunately in software development this same model is being followed (charging a customer for the hours spent).
In conclusion, when a customer comes to us asking us to solve his business problem or to create a software application as per his vision & we in return charging him for the hours our employees spend looks totally meaningless.
Software companies should look at solving customer problem or creating a software application as per customer needs & charge for the final solution/package that we deliver & not for the hours our employees spend. Why should any customer pay for the hours our employees spend?
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