Which factors should be taken into account when setting a cost budget for outsourcing project work to freelance service, especially for work that are unfamiliar which can be daunting.
Also, from the freelancers' perspective, which considerations should they make when evaluating budget set by potential clients. Saving Changes...
Depends on the contract type and procurement standards/policies. When the what or the how are uncertain, it does little good to push for a fixed price as it will likely not help achieve the project's objectives. A phased budgeting approach with go/no go gates might be better in such cases...
Kiron Saving Changes...
Deepesh RammoorthyICT Project Manager ( PMP®AgilePM®Certified ScrumMaster® (CSM®))| Australian Red Cross Blood ServiceTarneit, Vic, Australia
if the scope is not clear, then as Kiron pointed out, other types of contract like Time and Materials and Cost plus can be used.
You can define a high level scope, ask the service provider to quote an Order of Magnitude (OOM) cost . Obviously they will allow for some percentage of contingency .
Then you have to mutually agree on payment schedules according to delivery milestones, again exactly like Kiron said Saving Changes...
RAJESH K LProject Manager, PMP| Bharat Electronics, Bengaluru, IndiaBengaluru, Karnataka, India
Risk & schedule drive the extent of outsourcing apart from budget considerations Saving Changes...
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