Contracting for Agile IT: Rethinking your service agreements to keep up with changing IT models

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Contracting for Agile IT: Rethinking your service agreements to keep up with changing IT models

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Executive Brief – March 2020

  • Agile fundamentally changes the ways people work, but adoption maturity of these practices is limited
  • Traditional contracting or engagement models focus on certainty and absolute provider accountability, which conflicts with Agile principles 
  • IT organizations recognize the value in moving to an Agile development methodology but struggle to quantify success
  • There are 5 primary contracting models that are used for Agile contracts, each suitable for various stages of maturity
  • Some approaches are better tailored for an Agile environment, however experience and relationship maturity play a key role in the success of both parties
  • Beyond pricing structure considerations, Agile development necessitates changes to common contract Ts&Cs and metrics
  • Agile should not be treated as the holy grail to achieve faster time to market
  • Case study: financial services firm
  • Questions for IT and sourcing executives

 

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