Time and Materials
Time & Materials contracts are the simplest outsourcing contracts to set-up and deliver. It requires a defined task, a period of time and a rate so that the limit of liability for the client is specified. Time & Materials contracts can be used for short-term consultancy contracts, engineering manpower support or IT support services, the mechanism is very flexible.
The length of a Time & Materials contract can be days, months or years. With certain customers Serco has contracts that are for 5 years, although contractually the full period is normally broken down as 1 + 1 + 1 for the first three years with two potential extensions of 1 + 1. In this way the client is able to review the manpower requirement on an annual basis, whilst on the contractor’s side we are able to guarantee a certain level of income depending on our operational ability.
Serco provides a wide range of support to the XMM-Newton astronomical satellite for the European Space Agency (ESA).