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Outsourcing

Fixed Price, Dedicated Team or Hourly: Which Model Fits Your Project?

How you pay a development team shapes how the project runs. Here is when to choose fixed price, a dedicated team or hourly support.

Comparing project engagement models on a planning board
On this page 5 sections
  1. Fixed-price projects
  2. Dedicated team
  3. Hourly support
  4. Frequently asked questions
  5. A simple way to decide

STG Digital Solutions, like most development agencies, offers three ways to work together. None is "best". Each one suits a different kind of project, and choosing the wrong one is a common cause of budget fights and frustration.

Fixed-price projects

You agree a clear scope, a fixed price and milestone payments up front.

Best for: websites, online stores, MVPs and other projects where you can describe what you need before work starts.

Pros: you know the cost in advance, and payments are tied to delivered milestones.

Watch out for: changes. If you add features mid-way, expect a change request with its own price. That's fair, as long as the original scope was written clearly.

Dedicated team

Developers, designers or marketers work only on your product, and you pay a monthly fee.

Best for: ongoing products, startups that keep shipping new features, and businesses that need steady capacity without hiring.

Pros: flexibility. Priorities can change week to week, and the team builds deep knowledge of your product.

Watch out for: you need someone on your side to set priorities. A dedicated team without direction will drift.

Hourly support

You pay for the hours actually worked, usually with a monthly report.

Best for: maintenance, small updates, SEO tasks, bug fixes and anything unpredictable.

Pros: you only pay for what you use.

Watch out for: open-ended hourly work on a big project can grow without anyone noticing. Set a monthly cap.

Frequently asked questions

Which engagement model is cheapest?

None is always cheapest. Fixed price is predictable for well-defined projects, hourly is economical for small and occasional work, and a dedicated team gives the best value for ongoing product development.

Can I switch from a fixed-price project to a dedicated team?

Yes. Many businesses build the first version at a fixed price and then move to a monthly dedicated team or hourly support for improvements after launch.

How are changes handled in a fixed-price project?

Through change requests. Each new feature or change is described, estimated and approved before work starts, so the budget never grows by surprise.

A simple way to decide

  1. Can you write down exactly what you want? Choose fixed price.
  2. Will the work continue for months, with changing priorities? Choose a dedicated team.
  3. Is it small, occasional or unpredictable? Choose hourly.

Many businesses combine them: a fixed-price build, followed by hourly support after launch.

We offer all three models, with quotes in your currency. See how they work or tell us about your project.

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