September 10, 2024
The world of software outsourcing can be a complex one to navigate, especially when it comes to the costs involved in engaging an outsourcing partner. That’s why at Accelerance we are totally upfront about our business model and the fees involved in using our services. We want you to embark on your outsourcing journey with total confidence in your new partner, and a clear view of the ongoing costs - and the cost savings you stand to make.
In this Q&A Rich Wanden, Accelerance’s Chief Customer Success Officer, outlines how out matching and advisory services work - and what you can expect to pay.
What's your business model? How do you charge for your services?
You won't pay us anything for us to find you an appropriate software development outsourcing partner to work with. When you start working with that partner, then and only then, does that partner pay us a small sales commission. You can find out more about software developer rates you can expect to pay in our Global Software Outsourcing Trends and Rates Guide.
If we cannot match you with a software development partner that can deliver value to your business, we don’t deserve to be paid anyway. But we believe we have a very credible network of partners and we are exceptionally good at the matching process.
So above and beyond that sales commission, are there any other costs involved in working with Accelerance?
We are also in the business of giving advice, so if you seek to engage us, like any advisory firm, we will give you a schedule of costs. Occasionally while working with customers, we will come across some issues that need to be addressed. It may be that they're missing key resources, and we’ll help them out by filling a fractional chief technology officer role for a period. We often bring in product management experts who can mentor the team.
For those kinds of services, we charge on an hourly, weekly, or monthly basis depending on the level of engagement that the customer needs. But that's a fee for service, and that's separate from the matching service.
What sort of prices do you charge for that advisory service?
Those hourly rates depend on the experience of the consultant that will work with you. If we are talking about a fractional CTO, it could be as few as ten hours a week. Those rates run anywhere between $200 at the bottom end and up to $450, depending on the experience and skills required and the scope of work that needs to be handled.
The crucial thing about those engagements is getting the right person involved and that they are doing just the right amount of work to affect a great outcome. We are now old hands at doing this, so the outcome is great most of the time!
Do your partners put a markup on their fee to me in order to pay your fee?
We live in a very competitive world, and egregious rates are never going to be tolerated by customers. Our partners need to deliver value, and that needs to be reflected in their rates.
If they bumped up their rates, supposedly to cover the Accelerance fee we receive, you are unlikely to be dealing with them long term. We won't let our partners do that simply because we know we're going to lose deals because the value proposition isn’t as good.
How long does this whole process take, from Accelerance matching me with a partner, to the work starting to flow?
Typically, within six weeks a customer will be working with one of our partners. The first couple of weeks are spent gathering a brief to understand what the customer really needs.
Over the following two or three weeks we will be helping customers negotiate their rates, finalize a contract, and help the software development partner navigate the internal procurement process of their new customer. Four weeks setup time for a large software team would be quick, six weeks is normal. But days count for a lot if you have a very tight timeline. We are used to working to aggressive deadlines.
You can read more about our Rapid Referral® service here.
Once the deal is done and I’ve got my partner in place, will I be dealing with Accelerance on an ongoing basis?
At the outset, our job is to create a great working relationship between you and your software partner. After that, it's all about the direct relationship between the two of you. The contract is between you and your partner. But we are a referral business, and we want to be sure we are referring you to the right outsourcing partner.
So we will keep checking in with you for feedback on the engagement. Is the outsourcing team performing well? Is the partner recruiting new team members quickly enough? We will often coach the customer to go back to the partner if something isn’t working well. Our partners know that we are able to bring them really well-qualified business opportunities, so they are very responsive to feedback.
If there’s a breakdown in the relationship with my software partner, do I have any comeback with Accelerance?
Our partners will contract directly with the customer and we are not part of that agreement. But there is a social contract between all three parties. We will work with everyone involved to sort issues out. We don’t have project failures. But hygiene issues do crop up.
A customer may face a revolving cast of account managers, or feel they aren’t getting the people and resources they need. If a customer doesn’t like how they are being treated by their partner, they may go shopping somewhere else. It’s usually not about the rates they are being charged. But we have leverage with our partners and the ability to help resolve issues before they derail the relationship.
Keen to find out more about our partner matching and advisory services? Get in touch with an Accelerance advisor for a no-obligation consultation.
