Software product development or in other words developing your own software product is by no means an easy task. If you choose to develop your own software then you should be prepared to devote a significant amount of time and resources to it. You should go for in-house software product development only after a thorough cost -benefit analysis. If the perceived benefits from developing the software far exceed the costs involved then only should you go ahead with the project. If not, then you should opt for the services of specialized vendors who have the experience to execute these projects.

If you think that the size of your requirement is not that big and the involvement of only a few developers is enough then the best option is to post your requirements at any of the freelance job boards on the net along with the size of your budget. Registered members of these portals will bid for your project along with their estimates and project plan. You can choose the bid, which you find, provides the best combination of reliability and cost. Such an arrangement works best if the project does not require the "on-site" presence of a developer. However, if you think that your requirements are mission critical and you would require continuous support for the medium to long term then we suggest you go for an established vendor based in a low cost destination like India. These companies leverage the cheap labour available in their home markets to deliver innovative solutions to their offshore clients.

Most of these software development companies bill their clients according to the engagement model chosen by the client. If a fixed duration engagement model has been chosen then the project will be completed as per a fixed budget time line or cost and payments made accordingly. If you are not sure how long your project is going to last or some requirements may arise during any stage of the development process then you should opt for the Time and Materials Engagement model where payments are made according to the number of hours spent on each task. There is another type of engagement model known as the Full time Equivalent or FTE where dedicated resources are allocated to the clients. These resources may need to work on the premises of the client and the client is billed according to the number of resources deployed. Such engagement models are chosen when the project requires revisions and enhancements on a continuous basis.