From MVP to Scale
For US startups, the decision to outsource software development is often tied to funding and speed to market. Different models fit different stages.
Dedicated Team Model
What: An outsourced team works exclusively for you, managed by you or the vendor’s PM.
Best for: Long-term projects where deep domain knowledge is needed, and you want control over the team.
Time & Materials (T&M) Model
What: You pay for the hours spent on your project. Scope can be flexible.
Best for: Projects where requirements are likely to change or are not fully defined upfront. Good for agile development.
Fixed Price Model
What: A set price for a well-defined scope of work.
Best for: Smaller projects with very clear requirements and minimal expected changes (e.g., building a simple website).
Startup Considerations
Early-stage startups often use T&M or a small dedicated team for MVP development, then scale the team as funding and product-market fit are secured.
