Time and Material - When project scope is not frozen and is undergoing frequent changes. When scope, specification and implementation plans of a software development project are not easy to define at the outset and are undergoing changes, a Time & Material Model becomes an attractive option. Under this model, Q3 assigns a project team including project management, equipment and infrastructure and the client pays as per use of the hourly development efforts, making it the most flexible of the three models.

Software development project requirements tend to evolve during the course of implementation thereby necessitating additional or lesser resources. To facilitate such development, this model gives the flexibility of adjusting the client's project team size, while optimizing on the time and costs. Under this model the development effort is billed at the end of every month based on a monthly generated time sheet and a pre-negotiated hourly rate.