Why Outcome-based Pricing?

Hourly rates don't reward productivity. Traditional staffing is based on hourly billing, which pushes clients to chase cheaper offshore rates, often at the cost of quality. AI enables fair, neutral estimates. By measuring task difficulty in story points, AI removes bias from engineers or managers who might have conflicting incentives. Better engineers thrive. The best engineers can work faster without losing quality, and with Productivity Pricing, they earn more for delivering good work. Clients win too. Onshore quality at offshore prices. This model allows Fraction to deliver top-tier engineering at competitive rates.

Software is infinitely flexible. Clients naturally request changes throughout the process. Vendors pad or low-ball. To cover those changes, bids are either inflated upfront or filled with expensive change requests later. Productivity pricing solves this. Work is broken down at the task level, giving clients granular control over spend instead of committing to an entire project upfront.

What is a Story Point?

Fraction AI automates story point estimates for tasks (story points measure task complexity). 10 story points might equate to 3-5 easy tasks or 2 medium tasks in a week. Task difficulty is non-linear. We break big tasks into sub-tasks to account for that.

Senior AI Engineers, Paid by Outcome

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$99 per Story Point: Our AI-powered system behind predictable pricing

Story points replace hours as the basis for pricing. Each task is evaluated for complexity and effort using a standardized, AI-powered approach, so estimates are consistent and your costs remain predictable and tied to completed deliverables.

1 Point

Simple + minimal effort

Update error message text in a user authentication flow
Add a new field to an existing API response that's already available in the database
Update environment variables in a staging deploy config
Add a new option to a static or config-based dropdown menu

3 Points

Straightforward, but real work

Implement client-side form validation, use known validation lib
Add CSV export functionality to an existing UI data table
Create a new email notification template for password resets using the existing email service
Add a new filter, like "Filter by Status," to a report—both the UI element and simple backend logic

5 Point

Some complexity, a few unknowns

Implement a new REST API with to create/update team members
Add real-time webhook with retry logic for status update events
Build a usage dashboard component showing monthly active users from a new data source
New settings page where users can toggle a few email preferences: UI + backend to fetch/save the settings

Fraction breaks down tasks 5 points or larger to expose complexity and ensure productivity tracking.

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$99 per Story Point: Our AI-powered system behind predictable pricing

Story points replace hours as the basis for pricing. Each task is evaluated for complexity and effort using a standardized, AI-powered approach, so estimates are consistent and your costs remain predictable and tied to completed deliverables.

1 Point

3 Points

5 Point

Fraction breaks down tasks 5 points or larger to expose complexity and ensure productivity tracking.

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End-to-end software delivery,powered by agentic AI.

👷 US-Based Engineers, Paid by Feature Shipped

⚡ Instant Project Calculator

🎯 Agentic Software Factory

Humans backed by agents.Your entire engineering operation.

$99 per Story Point: Our AI-powered system behind predictable pricing

Story points replace hours as the basis for pricing. Each task is evaluated for complexity and effort using a standardized, AI-powered approach, so estimates are consistent and your costs remain predictable and tied to completed deliverables.

1 Point

3 Points

5 Point

Fraction breaks down tasks 5 points or larger to expose complexity and ensure productivity tracking.

SignatureFD: Automating What Felt Impossible

Avantos: Accelerating a Critical Integration

ZyDoc: A Creative Director Who Was a Business Partner First

Get in Touch

Company

Resources

End-to-end software delivery,
powered by agentic AI.

Humans backed by agents.
Your entire engineering operation.