Every SAP engagement is different and has different total cost of ownership structure. Our Participation with System Integrator as well as Direct Customers is purely based on governance structure agreed for empanelment process.
Broadly, we work with our customers on following four pricing models
Fixed Time, Fixed Price Model ( Lumsum One Quote)
Target Audience: SAP Service Partners, SAP Customers, SAP Upgrade Customers, SAP Training Customers. SAP Audit Customers
A low risk proposition you can choose when the scope & specifications are clear. Visiontree execution process ensures reliability, predictability & optimized performance of the project to deliver on time, on budget, on target. Combine this with offshore development activities & you have very cost effective quality solution. Visiontree participates in this kind of model only with in-house availability of resource base to deliver scope as identified. This Model being used either for module implementations or Audit Services or Training Assignments where SAP Professionals from Visiontree has clear know-how on entire project plan and ownership structure.
Deliverables: Project Scope irrespective of number of SAP Professionals from Visiontree. Project Ownership is with Visiontree.
Time & Material Price Model ( Per Hour Pricing)
Target Audience: SAP Consulting, SAP Service Partners, SAP Channel Partners, SAP Customers
Using this model, Visiontree will depute a project team along with Project Management Personnel (in case of execution is with Visiontree). Client can pay by the month depending on size & composition of the team. Most of onsite services (unless it is part of fixed price project) are delivered using this pricing model. Visiontree can bid for partial phases on fixed price & remaining phases on T & M bases incase situation demands.
Deliverables: SAP Professionals without any ownership of Project Scope by Visiontree.
Milestone Based Pricing Model ( Lumsum Pricing by Milestone)
Target Audience: SAP Service Partners or Direct Customers where Visiontree owns Project Management back to back working directly with Program Managers from Customer
For the clients who are concerned about progress in remote projects, milestone based payment schedule reinforce the progress monitoring. It helps justify payment based on achievable milestones & visible progress reduces risks.
Deliverables: Project Scope, Project Plan & SAP Professionals both frozen. Any further addition into Project or Delay in Project or addition of SAP Professional affect commercials agreed. Project Ownership is both with Customer & Visiontree.
Retainer Pricing Model ( Referral Pricing Structure, Flat Rate Structure)
Target Audience: SAP Service Partners or Direct Customers where either they wish to Ramp up SAP Consulting Resource base or would like to hire SAP Professional for Senior Managerial Role.
Designed to meet the needs of those clients those who have daily or weekly development needs. This model ensures that dedicated team works as an extension of client's staff in our development center. These resources are trained with operational life cycle of the client on day to day activities & act as right arm for technology requirement or extension to existing IT Department. The benefit of this model are extensive scalabilities & cost/time efficiencies.
Deliverables: Commercials are attached on Number of SAP Professional engaged irrespective of Project Scope or Customer expectations as a whole. Project Ownership is with Customer.