How We Structure Engagements & Pricing

by Jose Luis AmorosOct 20, 2025Nearshore

Table of Content

The Core Factors That Influence a Project’s Investment
Our Flexible Engagement Models
Engagement Model Comparison at a Glance
Why This Matters

One of the first and most important questions for any custom software project is, “What will this cost?” Because every project is unique, the answer is not just a number. The goal of this page is to provide a transparent look into how we approach project pricing and partnerships. A great partnership starts with a clear understanding of the collaboration model, which defines how our teams work together, manage risks, and drive your project to success. Here, we will break down the factors that influence your investment, the different ways we can structure our engagement, and our proven path to a predictable budget.

The Core Factors That Influence a Project’s Investment

The scope and complexity of your vision are the biggest drivers of the final cost. A professional estimate is the result of a detailed analysis of several key areas. Understanding these factors will help you understand the value embedded in a custom solution.

Hardware & Firmware Complexity (for IoT/Embedded Projects): Is your project using off-the-shelf sensors, or does it require a custom-designed circuit board and enclosure? Custom hardware and the low-level firmware that runs on it require a specialized design, prototyping, and testing process.
Software Complexity: This includes the web and mobile applications that users interact with. The number and complexity of features—such as user dashboards, real-time alerts, data analytics, and user management—are a primary driver of the development effort.
Integration & Future-Readiness: A new software solution rarely lives on an island. The effort to integrate with existing enterprise systems (like your CRM or ERP) is a critical cost driver. Furthermore, the architectural complexity required to ensure the solution is flexible and “AI-ready”—designed to support future integration with emerging technologies—is a key factor in the overall investment and long-term value.
Security & Compliance Requirements: Building a solution that requires adherence to specific industry standards (like HIPAA for healthcare) or advanced security protocols involves a more rigorous and detailed development and testing process.

Our Flexible Engagement Models

Choosing the right engagement model is not just a pricing decision — it’s a partnership strategy. The model defines how we collaborate, manage risks, and drive your project forward. Different models offer different balances of flexibility, predictability, and speed, so the right choice depends on your business priorities. Below are the most common ways clients engage with Krasamo, explained in buyer-friendly terms.

1. Time & Materials (T&M)

Also known as: Agile Development, Flexible Scope Projects This model is built for adaptability. You pay for the actual time and expertise our team invests, giving you maximum flexibility to adjust scope and priorities as your project evolves. Best for:

Projects with evolving requirements
R&D, prototyping, or MVPs where direction may change
Companies testing new market opportunities

Pros

Maximum scope flexibility
Rapid adjustment to priorities and feedback
Ideal for innovation and iterative development

Cons

Budget can be variable
Requires active client involvement

Outcome: Accelerates learning and reduces risk by letting you adapt in real time to business and user feedback.

2. Fixed-Price Projects

Also known as: Project-Based Outsourcing, Turnkey Solutions This model provides budget predictability. We agree on a clearly defined scope, timeline, and price. It’s best suited when requirements are well-understood and unlikely to change. Best for:

Stable, well-documented requirements
Internal stakeholders who demand fixed budgets
Compliance-driven industries (healthcare, finance, etc.)

Pros

Completely predictable budget
Clearly defined scope & timeline
Lower day-to-day client involvement

Cons

Changes require renegotiation
Less flexibility if needs evolve

Outcome: Delivers confidence for stakeholders and finance teams by providing a clear, upfront investment plan.

3. Dedicated Team

Also known as: Staff Augmentation, Dedicated Development Teams, Extended Team Model This model provides a long-term extension of your in-house team. A dedicated group of Krasamo experts integrates deeply into your processes, tools, and culture. Best for:

Long-term digital products or platforms
Companies needing specialized skills at scale
Businesses seeking to augment in-house capacity

Pros

Deep integration and knowledge continuity
Full control over priorities & workflow
Strong long-term alignment with your business

Cons

Higher long-term financial commitment
Requires active client-side management

Outcome: Builds institutional knowledge and delivers ongoing innovation — your extended team evolves with your business.

4. Hybrid Model

Also known as: Blended Engagement Many successful projects combine models. For example:

Start with a Fixed-Price discovery phase to define your MVP.
Transition into a Time & Materials model for agile, iterative development.
Scale with a Dedicated Team for ongoing product growth.

Best for:

Organizations needing both predictability and flexibility
Long-term digital transformation roadmaps
Startups scaling into enterprise-grade products

Outcome: Gives you the best of both worlds — stability where you need it, agility where you want it.

Engagement Model Comparison at a Glance

Model	Buyer-Friendly Equivalent	Best For	Budget Predictability	Flexibility	Client Involvement
Time & Materials	Agile / Flexible Scope	R&D, MVPs, evolving requirements	Variable	High	High
Fixed-Price	Project-Based Outsourcing	Stable, well-scoped projects	High	Low	Low
Dedicated Team	Staff Augmentation / Extended	Ongoing product development	Medium (retainer)	Medium	Medium-High
Hybrid	Blended Engagement	Mixed needs, scaling products	Balanced	Balanced	Moderate

Nearshore Mexico Delivery — The Best of Both Worlds

Krasamo’s Nearshore Mexico Delivery gives U.S. teams a fast, practical way to combine close collaboration with cost efficiency.

Why it works

Same-time-zone collaboration — real-time meetings, faster feedback cycles, and fewer coordination delays.
Cultural fit — clear communication and business norms that reduce friction and speed decisions.
Easy proximity — short flights for on-site workshops and face-to-face alignment when needed.
High-caliber talent — experienced engineers with deep skills in IoT, AI, and custom software.
Cost-effective — more economical than U.S. onshore delivery while maintaining transparency and quality.

When to choose Nearshore

You want a long-term partner that works closely with your team.
You’re running fast-iteration innovation programs.
Your project needs tighter oversight or operates in regulated industries.

The Krasamo difference
Nearshoring in Mexico can be applied to the engagement model that fits your goals — whether that’s a dedicated team, project delivery, or an iterative T&M approach. It’s how we deliver speed, trust, and value without the trade-offs.

Why This Matters

Selecting the right engagement model gives you clarity, alignment, and control from day one. At Krasamo, we don’t force a one-size-fits-all model. Instead, we work with you to design the right structure for your goals, and budget.

Krasamo delivers from both the U.S. and Mexico, giving clients options to balance cost, proximity, and team composition. You choose the setup that best fits your priorities — from nearshore Mexico delivery with same-time-zone collaboration to U.S.-based staffing when local presence is preferred.

See how our Discovery Process ensures your project starts with the right foundation.