A consultant in an interview with two people representing the client

Category: Expertise strategy

Advantages of Time & Material contracts

This article discusses the main benefits of extending your team by hiring consultants on Time and Material contracts. You can use these flexible contracts locally on-site or via our Nearshoring centres in Poland.

emagine's core business is the delivery of consultants on a Time & Material basis. One thing often unclear for many companies is how Time & Material contracts can be an advantage when you extend your team.

We discuss four of the main advantages:

      • Why do Time and Material contracts give flexibility?
      • Why is agility a vital factor?
      • What do IT specialists prefer?
      • How can you keep control of expenses?
Illustration with the words; Gives flexibility, Requires agility, The choice of experts, Demands budget control

Four main benefits: Gives flexibility > Requires agility > The choice of experts > Demands budget control.

Gives flexibility

The most significant advantage of Time and Material contracts is their flexibility.

Time and material contracts are simple to make and extend and easy to end. That makes it possible to quickly or efficiently scale up and down in resources as needs and demand change.

And precisely, the ability to scale up and down in resources efficiently and flexibly is vital for many modern companies – especially for IT-centric companies. Furthermore, Time and Material contracts are flexible, where you can either have resources added full-time, part-time or just for a few hours. It all depends on your needs.

Time and Material contracts characteristics:

      • Simple to extend and terminate
      • Easy to scale up or scale down
      • Provide access to extra resources

Read also: How to hire external consultants successfully

Hands on a table gesturing when talkingwhen

In the process of bringing a consultant on board, the simple time-based contract terms make it possible to get resources quickly.

Requires agility

In a development organization dealing with change, the ability to change direction is vital. Agility has become a more prominent competitive parameter than ever before.

Adjusting your "start position" may be necessary to meet customer and market demand. It is a need that can happen overnight when you need to act quickly to keep the flow in development. Time-based contracts both require and give that readiness and agility.

In bringing a consultant on board, the simple time-based contract terms make it possible to get resources quickly, so development and progress do not stop.

However, a fixed-price agreement involves much time to define a scope that can then be a starting point for a price. Furthermore, fixed-price contracts often reduce flexibility and the ability to handle change, as project scope changes require you to revisit the original agreement.


  In bringing a consultant on board, the simple time-based contract terms make it possible to get resources quickly, so development and progress do not stop.


The preferred choice of experts

The "Gig-economy" is upon us – especially in the IT industry. There is a growing trend amongst specialists to seek out project-oriented work.

Hourly contracts are the preferred choice and the industry standard. So, if you want your hands on the sharpest IT professionals, then Time and Material contracts are inevitable.

The traditional employer-employee relationship is under pressure. Increasingly, many IT professionals will seek the path of independence, and the Time and Material contract will be a choice for many IT professionals.

An expert interviewed by a client for a flexible contract

When negotiating flexible contracts with IT experts, the basic time and material based option is popular among consultants.

Remember to keep an eye on the budget

Compared to fixed-price agreements, it is clear that with hourly contracts, you do not get a specific solution or service for a certain amount of money.

Therefore, you must keep track of progress and hourly consumption to ensure you get the desired value from the consultant.


With emagine's online Client module, achieving complete control and overview of all consultants is easy.

A tight budget control ensures you keep your budget, and with the Client module, it is even easier to check the status, so the expenses do not get out of hand.

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