Fixed-Cost vs TaaS: Which model fuels optimal digital transformation?

Fixed-Cost vs TaaS: Which model fuels optimal digital transformation?

As businesses recognise the pressing need for digital transformation to modernise legacy systems and develop new digital products and services can often present significant challenges. The internal resources may be lacking, and the expertise to navigate innovation may not be readily available within the existing staff. The investment needed for staff training and acquiring the necessary digital tools can be substantial. Consequently, many businesses seek external help to steer their digital transformation journey. However, this assistance usually comes in two forms: the traditional fixed-cost model and the more recent Team as a Service (TaaS) model.

The familiar to most businesses fixed-cost model – which at first glance appears simple and straightforward – can often be a hindrance rather than a help. Its rigid structure and lack of flexibility can hinder innovation, preventing companies from reaching their digital transformation goals. On the other hand, the TaaS model, a flexible, client-centred approach, is emerging as a powerful facilitator for successful digital transformations. 

But let's start by exploring both models, their key differences and their benefits.

Understanding Fixed-Cost Models

The fixed-cost model, where a defined project with set deliverables is delivered for an agreed price, seems appealing on the surface. Budgets are set, deliverables are established, and everyone seems content – until unexpected changes arise. In the world of digital transformation, change is not merely a possibility; it is a certainty. 

It's not uncommon for such projects to take a significant amount of time to complete due to the various steps involved. During this time your project requirements may alter, change requests can be more than what was agreed, new tech and tools can surface, or you may experience shifts in customer behaviour and feedback. These are just a few variables that can cause your initial plan to be readjusted. But, the fixed-cost model lacks the flexibility to accommodate these shifts efficiently. The result can often be budget overruns, compromised quality, and strained client-vendor relationships.

Unpacking Team as a Service (TaaS)

TaaS, on the other hand, is a dynamic and flexible model designed to meet the inherent uncertainties and rapid shifts of the business landscape. Instead of having fixed resources and rigid project plans, TaaS builds a customised team around your specific needs and goals. This approach not only ensures the inclusion of the right expertise but also facilitates the accommodation of any changes in project scope or technology requirements. This increased agility leads to a superior outcome without the added stress and expense of contract renegotiations. 

With more than 12 years of experience in delivering digital transformation projects, at Calls9, we believe that the Team as a Service model is the right option if you want to successfully digitally transform your business, as it offers:

  1. Flexibility and Scalability: TaaS allows you to adjust team sizes according to your project requirements. Need a team for a big project? No problem. Want to scale down post-project? That's possible too.
  2. Cost-efficiency: TaaS negates the need for long-term financial commitments associated with full-time employees, such as benefits, training, and office space. It provides cost-effective access to skills when and where you need them.
  3. Access to diverse and specialist skills: TaaS allows you to tap into a pool of diverse talent and skills, opening up opportunities for innovation and creativity.

The Calls9 TaaS Advantage

In the sphere of digital transformation, Calls9's unique TaaS model is emerging as a game-changer. Let's delve into how Calls9 utilises TaaS to deliver unprecedented value to its clients.

a. Customised Collaboration: We understand that each business has unique requirements and challenges. Therefore, our approach is not a one-size-fits-all but rather a tailored collaboration with clients to build the ideal team for their needs. This allows for a deeper understanding of your business's culture, goals, and challenges, delivering solutions that align perfectly with your strategic vision.

b. Technological Selection: Every project is unique, requiring its own blend of skills, technologies, and tools. At Calls9, we approach technology from an agnostic perspective, enabling us to choose the optimal technologies and tools that seamlessly align with your project's unique demands. Our holistic approach considers your existing infrastructure, capabilities, and strategic objectives to ensure the success of your project.

c. Budget Maximisation: TaaS allows for dynamic scaling and reconfiguring of resources in line with your evolving project demands, ensuring that you pay only for what you need, when you need it. Our model's agility reduces the risk of project overruns and financial losses that often plague fixed-cost projects when unplanned changes arise. Moreover, TaaS facilitates access to a broad spectrum of specialists as needed, eliminating the potential costs associated with training or hiring additional staff. Finally, our Team as a Service model encourages iterative development and continuous improvement, optimising resource usage and delivering superior outcomes over time. 

Why TaaS is the Future of Digital Transformation

Looking beyond the immediate advantages, it's evident that TaaS holds a promising future in the context of digital transformations. The model's inherent agility, scalability, and client-centric approach align seamlessly with the needs of businesses. You are no longer content with being a passive receiver of services; you actively collaborate and customise your digital transformation project.

Selecting an approach that meets immediate project needs and positions your business for future success is critical. While the fixed-cost model may seem attractive for its simplicity, the TaaS model, especially as provided by Calls9, offers the adaptability, customisation and value for money that modern businesses require. It's time to rethink how you approach digital transformation – consider Calls9's TaaS offering as your strategic partner for digital success.

Have a question? Are you interested in finding out more? We are happy to help!