Business Models

Business redefined

We offer flexible business models and the emphasis on the engagement model is to enable the best value realization for our customers. We provide accountability-led, outcome-based engagement models to the table, increasing our stake in your business’ success.

Redeem System’s domain specialists begin by working closely with you to work out the engagement model that best suits the business’ need. With the focus squarely on growth, we work out the specifics in mutual agreement, choosing from an array of options.

Bold Business Models

  • TOB aka Reverse BOT
  • Risk Reward
  • Cost Plus

Conventional Business Models

  • Project-based pricing
  • Effort based pricing
  • Offshore Development Center

To sustain in a complex and competitive ecosystem, we at Redeem Systems believe that there is a constant impetus on us to innovate to stay relevant in the market place.

We, as a company, constantly endeavor to innovate and add value to our customers – in the very products that we design and develop, in the process that goes behind this co-creation and in the business models we offer to our customers. This is what we call as Co- Shore & Share philosophy that is the very premise on which our innovative & bold business models basket is made off and continuously expanded.

TOB aka Reverse BOT

Being in the PLM related services business, Redeem Systems can undertake Full outsourcing projects on the products sustaining front which will involve of transfer of assets, people and facilities completely. We can take full accountability for the product upkeep from there-on also support the OEM sales teams in new business development. We are open to running such programs on revenue / profit sharing basis so that it makes it win-win for our customers and us.

We also provide this model for taking over, re-invigorating and effectively running ailing captives(GIC) as an ODC for the customer assuring same levels of dedication while multiplying and maximizing the ROI through such set-ups. So in these models – we transfer, operate and further build upon the operations involving specific product lines and centers of our customers.

Risk Reward

These business models can be pure revenue /profit share or a combination of traditional pricing with revenue/ profit share, depending on the nature of the business environment and outlook.

These models are primarily used at instances our solution accelerators& IP components are used . Instead of charging NRE to customers, we also take up product success as the yardstick for remuneration so that development costs are kept minimum for customers and we co-share the burden in all aspects with our customers in brining truly credible ideas to life. This approach has enabled us to forge deeper and more valuable relationships with our client partners.

A revenue / profit share solution could include lower risk-lower reward for Redeem Systems initially moving on to high risk-higher reward over the period of the engagement driven purely by your business growth.

Cost Plus

Especially when we are in the Products co-creation business, it is imperative that we catalyze the product realization dreams right from the concept stage, while also doing the same from the design or morphing an existing product stages as starting points. We adopt the cost plus model, especially with product start-ups. The plus part is that we are very flexible, and at times, even liberal. This model helps us to support the cause of Greenfield product development from great ideas held by, at times, cash strapped ventures. We see this as one way for us to be up the value-chain and offer cutting-edge solutions to customers world-wide.

Project based pricing –i.e. – Fixed Price Contract

This type of contract means that the development project in question is described in the available documentation in sufficient detail, thus enabling Redeem Systems to estimate the scope and complexity of the project and to provide a fixed price. In this case, the technical documentation, the project delivery schedule and the final price are stipulated in the contract.

When the project scope cannot be precisely envisioned at the moment (e.g. when a project lasts several years), another model is used.

Our process optimization ensures reliability, predictability and optimized performance of the projects to deliver on time, on budget, on target.

Effort based pricing – i.e. – Time & Material Contract

In the Effort based pricing model, the project cost is a function of the total project execution time and the corresponding resources deployed.

This business model is particularly useful in contexts where the projects are quite complex and are prone to specification and design changes midstream.

This model gives customer greater flexibility in terms of developing the project specification on an ongoing basis and modify specifications based on the changing market needs.

Offshore Development Center (ODC)

An Offshore Development Center (ODC) is an extension of the customer’s own engineering center. Through such ODCs, we offer the best skill sets, resources, flexibility and time-to-market advantages to the customers, taking all necessary efforts to protect the Intellectual Property Rights (IPR) of the customers. All rights to the IPR developed in the Development Facility vests with the customer.

The Offshore Development Center (ODC) also provides a very cost effective solution to customers requiring continuous offshore support. We provide a separate physical premise with sufficient security for an Offshore Development Center (ODC). The software design, the development methodologies, the schedules and the test plans are worked out on mutual consideration. We also implement standard/customer specified quality framework. Billing is based on man-months expenses at the contracted rate and expenses as approved on actual for on-site work.

    Benefits of ODC Model to our Customers:

  • Timely availability of resources for projects (Skilled & experienced engineers and appropriate infrastructure including comprehensive development and testing facilities).
  • Fully transparent operations enabling tracking of project schedules, costs, and risks on on-going basis and timely resolutions of issues.
  • Implementation and maintenance of quality standards and practices.
  • Substantial reductions in R&D costs (lower fixed costs/overheads with us taking complete responsibility for administrative, staffing and training functions) of the customer.
  • Complete responsibility for all engineering and project management activities is taken by us.