It can be difficult to maintain the exact right level of staffing and range of skill sets to keep pace with an organization’s ever-changing learning and development needs. To solve for this continuous fluctuation, many L&D leaders leverage outsourcing partners. However, relationships with outsourcing partners are typically structured on a project-by-project basis, in a “fixed bid.”
But “fixed bid” is not the only way. Imagine if you could perfectly match resources to what you need, and it didn’t cost too much. Imagine having immediate access to the resources and skill sets that you need when things get busy and being able to instantly scale down when things get slow.
The “Studio on Demand” solution flips this legacy project-based model on its head and makes everything in an L&D team work more smoothly. Let’s explore its distinctions from the fixed-bid vs. studio on demand model in this context.
Fixed-bid Vs. Studio on Demand – 3 Key Differences
Fixed-bid Outsourcing Model
Fixed-bid outsourcing is a project contracting approach commonly used in various industries, and it is the most common outsourcing model used by L&D teams. In this model, a client and a contractor (or a service provider) agree upon a fixed price for a specific project or task. This model is bound by a well-defined scope and timeline, with a predetermined understanding of costs and deliverables. A key characteristic of fixed-bid hiring is that the agreed-upon price remains constant, regardless of the actual time or resources required to complete the project.
Here are the points mentioned explained in more detail:
1. Takes a Long Time to Scope
In fixed-bid hiring, one of the initial steps is scoping the project, which involves defining the project’s requirements, objectives, tasks, and deliverables in detail. This scoping phase can be time-consuming, as the client and the contractor must ensure a comprehensive understanding of the project’s scope to avoid misunderstandings and disagreements later.
2. Scope Often Changes Mid-Project
Despite the efforts put into scoping at the beginning, it’s not uncommon for the project’s scope to evolve or change as it progresses. This can occur due to various reasons, such as changes in business priorities, emerging new requirements, or a better understanding of the project’s needs. Since fixed-bid contracts are based on the initial scope, any changes can lead to challenges, including additional costs or delays.
3. High Cost Due to Unknown Variables
Fixed-bid contracts come with a predefined cost, which means that the contractor needs to account for any potential risks and uncertainties when determining the price. This often leads to contractors adding a contingency or padding to the price to cover unforeseen variables. This results in a higher overall cost for the client, as they are paying for the contractor’s risk management. Moreover, if the project encounters unexpected challenges or changes not included in the initial scope, the client might have to pay additional fees to address these issues.
Studio on Demand
Studio on Demand is a flexible business model that addresses common challenges related to resource allocation, working with outsourcing partners, and project execution. It is designed to provide organizations with a cost-effective solution to optimize operational efficiency and maintain high productivity.
In contrast to the rigid confines of fixed bids, Studio on Demand fosters an adaptable and ongoing partnership, accommodating evolving needs and fostering a long-term collaboration between the client and the service provider. With Studio on Demand, you sign with an outsourcing partner once, and the relationship remains in place over time, without requiring a new contract for each project that arises.
Here are the key points about Studio on Demand:
1. Gain Access to Talent When Needed
Studio on Demand provides organizations access to skilled professionals, from designers and developers to project managers and domain experts. This talent pool is available on-demand, meaning businesses can tap into these resources exactly when they require specialized skills or extra hands on deck for ongoing projects or sudden spikes in workload. This model enables companies to swiftly scale their teams without requiring extensive hiring processes.
2. Easily Offload Additional Work
When a team is stretched too thin due to multiple projects, tight deadlines, or unexpected challenges, studio on demand allows organizations to easily offload additional work to the external talent pool. This prevents burnout, maintains the quality of work, and keeps projects on track. It offers a dynamic solution for managing workload fluctuations, ensuring that core team members can focus on their key responsibilities while the external talent pool handles supplementary tasks.
3. Stop Over-Spending and Under-Resourcing
Traditional staffing models often involve hiring a large permanent workforce to accommodate peak workloads or relying on freelancers and contractors for specific projects. Both approaches can lead to overspending during slow periods and under-resourcing during busy periods. Studio on Demand helps overcome this issue by offering resources and expertise as needed. Organizations pay only for the additional resources they use, preventing unnecessary expenditures when workloads are low.
Infopro Learning’s Studio on Demand engagement model transforms client engagement and project management. It enhances ongoing projects, streamlines new project adoption, and strengthens the presence within client accounts while seamlessly integrating with their teams.
Fixed-Bid Vs. Studio on Demand: Choosing the Right Fit
Fixed-bid hiring and studio on demand are distinct project contracting methods. Fixed-bid hiring sets a predetermined cost for a project, suitable for clear cost understanding yet rigid if the project scope changes. On the other hand, studio on demand offers agility, giving access to skilled professionals as needed. This suits businesses requiring quick team scaling and cost-efficient workload management. The ideal method depends on your unique requirements.