Varying Cost Model
This model is similar to fixed cost model but differing from it in terms of individual project demand and experience/skills requirements. Many companies use this model to minimize their labour expense by reducing core staff and then partnering with Novo to supplement their staff to meet peak production demands as needed. Novo decides the cost of resource per month depending on the experience range as and when the need arises. For every experience / skill demanded the cost will be projected for approval.
This strategy is particularly effective for industrial labor, although it can also be employed in technical and professional projects to realize effective labour cost reduction. This model requires plenty of time to be spent by the client and Novo as it involves negotiation on every single resource proposed.