Business Model

The definition of Business model, from essence, is the responsibilities and right of two parties. For example, the concentration process in IT industry.

Fixed Price Project

Offshore Development Center

Staffing

Fixed Price Project

Definition：A project is temporary effort with limited time and resource to achieve a specific goal such as building a software system, providing services. For most projects we sign contract with a fixed price. Before signing contract, customer provide us requirement of project for our assessment. Then we give our price estimate and preliminary schedule in our proposal. After business negotiation and contract signing, we take responsible for management of project and take risk of deliver software system on time solely.

Responsibilities and rights of clients as following:

- Provide detailed requirements;

- Accept documents and software in accordance with the standards

- Pay the fixed price in accordance with the agreement

Vendor's responsibilities and rights:

- Set up management team and inspect development and management process, in order to achieve quality standards;

- Submit documentation and software on the required time and quality demands

Offshore Development Center

Definition：Offshore Development Center is essentially a dedicated team specialized on providing developing or testing services to specific customers. Most of these customers are in IT industry especially software industry. To pursue cost reduction, productivity and speed, customers ask us to build a team in China according to their particular requirements. We build, recruit, run and manage the ODC; also we must take the responsibility of operation performance of ODC. ODC perform engineering work according to customer’s work orders.

In this model, we settle with customer with time and material model. In the contract, we define clearly the month/day/hour rate of engineers in various levels.

Responsibilities and rights of clients:

- Provide required needs of engineers and equipment;

- Participate in the development process management;

- Guidance the team;

- Pay the price in accordance with the workload

Vendor's responsibilities and rights:

- Set up the development team and supply related equipment as requested,

- Involved in the development management;

- Improve team performance;

- Correct the team and equipment, which do not meet the requirements

Staffing

Definition：Body-Shopping is a unique model in which we dispatch our engineers to work on customer’s site. The onsite engineers are under management of customers and work closely in customer’s project team. Our company, as employer of the engineers, is not involved in the project. Our responsibility is to keep the performance of engineers meet requirement of customers. In this model, we settle with customers with time and material model.

Responsibilities and rights of clients:

- Provide engineers needs;

- Provide the development environment;

- Development process management;

- Guidance team;

- Pay the price in accordance with the workload

Vendor's responsibilities and rights:

- Provide qualified developers as requested;

- Replace unqualified or poor performance developer.

Current innovational modes are:

Early stage of a project, apply time and material model for analyzing. Then submit a detailed requirements specification.

The second stage, vendor report a fixed price based on a detailed requirements specification, and then implement the second phase of software development.

As previously mentioned, our core methodology philosophy is “Take the advantage of web technology to bring maximum value to clients”. Therefore, in terms of business models, we apply a variety of popular models more flexible.

However the difference is: our responsibilities and value we bring to clients. No matter apply which kind of model, we are committed to provide clients with maximum values that are responsible for the technical work we do. It means that even we use staffing model (though we do not intend to use this model), we still responsible for our engineers’ work. In any case, we keep examining what kind of value we provide to clients.