Engagement Models

Unlike many other companies, Ascendum is willing and able to offer a flexible range of engagement models to its customers.  These models are built on flexibility (to match client and/or funding/budget size), transparency (to build long term relationships) and sharing risk/rewards with clients ensuring that WE RISE TOGETHER. They include:

Time and Materials Projects: This is the most common and traditional work-for-hire engagement model and can be implemented either on a time-and-materials or on a fixed price basis. For Time and Materials engagements, the customer is charged an hourly rate rate based on the skillset and location of the resources used in the project. For certain projects Ascendum also offers Fixed Price engagement option.

IP License + Customization Fees Model: Ascendum strongly believes that not every solution needs to be developed from scratch.  We believe that existing intellectual property can be reused for various customer needs, such as standard platforms from third party companies, in-house platforms developed for previous projects, or public-domain (open source) code. In this model, we use as much as possible of the existing, proven, intellectual property (code) and develop remaining application/software with customization efforts (clients pay an IP license fee on an ongoing basis and pays for customization based on specific needs). We also reduce the customization fees as as much as possible using global delivey models, where applicable.

For example, a large portion of solutions for our customers involve some type of intellectual property from partners such as Microsoft, Oracle, SAP, PeopleSoft, JD Edwards, etc., Business Process Management (BPM) platform from Bluespring Software, procurement technologies from Vinimaya, disaster recovery and backup software from Essentio, or course development system from Ascendum, etc.

Instead of reinventing the wheel every time, we use standard code that has been time-tested. This reduces the time to market (rapid development) and keeps overall costs under control. 

In our opinion, few IT outsourcing companies have invested in "building the Intellectual Property Bank (IP Bank)" like Ascendum (the Vora Group) has. Instead, these traditional IT Services providers have focused on time and material based projects, replicating the same (similar) solution for subsequent customers. Ascendum's unique approach is a key differentiator. For a list of the entire portfolio of Ascendum intellectual property based solutions, click here.

Shared Risks/Reward Arrangement for Joint Product Development: under this model, our customers can develop software at a fraction of the cost instead of waiting for a larger budget (approval) to develop the same software over the next few years, thereby reducing time to market. This approach allows customers to use their development dollars in other places (e.g., marketing and sales). It also reduces their risk in case the software is not as successful because of factors outside their control.

In this model, Ascendum would share the risk of the software development costs (by providing resources at cost or below cost) in return for shared revenues once client stats selling the jointly-built product (shared risk/reward model). As a subsidiary of a reputable private equity firm, Ascendum can make significant investments in developing long-term relationships. As a result, Ascendum also sustains any economies from that approach.

In essence, Ascendum "puts skin in the game," assuming personal responsibility for their performance: skill/ability of resources; architecture; user-interface, and overall attractiveness of the package; the need to match requirements to customers/client needs; and overall quality of the application/software. Ascendum also can be part of the marketing process and provide the resources for lead generation, and provide pre-sales and post-sales support. As a result, our client enjoys more success in the marketplace at little or no risk and Ascendum shares the rewards from future success (royalties, equity, or other structure that may be appropriate, depending on the size of the company, type of the product, new or existing market, overall cost of development/investment, and history of the relationship with that client).

Joint Venture: Ascendum offers a joint venture model (JV) for partnership with strategic customers.  It's ideal for mid-to-large size companies who want to to set up their own development team offshore but face challenges in doing so due to legal, infrastructure and setup costs, selection of location, ROI concerns, etc.

The Ascendum-Client JV will be a new company with joint equity ownership between Ascendum and the client delivering joint governace/control and transparencies.  When the time and conditions are right, after initial gestation period, the customer can initiate a build-operate-transfer (BOT) option (i.e., take 100% ownership in the JV). The JV partner also has the option to cash out from their equity ownership and get significant (cash) returns from the IT investment in the period that they have earned the equity.

Global Development Center: For clients who are not ready for a JV (equity based relationship), Ascendum offers a Global Development Center (GDC) model. Clients will have access to dedicated resources working at various Ascendum locations worldwide and performing client-managed work. This can be a cost-plus model with the same level of built-in transparencies, depending on number of resources and the length of the commitment.

The GDC option provides clients all the benefits of having their own development center without the burden of governmental, legal and financial integration of the foreign-entity. GDC customers also have an option to convert the GDC into a JV if and when it makes sense to do so. This model works for customers who require scale, and want to start realizing significant cost benefits, consistency, and client's culture implanted into the members of the GDC.