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Fixed Price vs Agile Software Development

We explore the benefits of Agile vs Fixed Price contracts when choosing a software development company.

The presentation discusses the different results you might get when you disclose or do not disclose your budget. It also touches on waterfall software development and outlines how agile web and software development works.

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Fixed Price vs Agile Software Development

  1. 1. The Benefits of Agile 
 vs. Fixed Price Software Development
  2. 2. If you want to get custom software developed for your business, you’ll usually have:
  3. 3. So, let’s say you have a budget of £100,000 and need the software complete
 and deployed in 10 weeks’ time.
  4. 4. You have two options…
  5. 5. Option 1: Keep Quiet About the Budget
  6. 6. Option 1: Keep Quiet About the £100k Budget “I need custom software developed for my business. My deadline is 10 weeks from now.” You. Software development company
  7. 7. Option 1: Keep Quiet About the £100k Budget You. Software development company Sure, we can do that in time for your deadline. It’ll cost £80,000. Any additional work required due to unforeseen circumstances or a change in your requirements will be charged at our hourly rate.” Scenario 1: “I need custom software developed for my business. My deadline is 10 weeks from now.”
  8. 8. Option 1: Keep Quiet About the £100k Budget You. Software development company Sure, we can do that in time for your deadline. It’ll cost £80,000. Any additional work required due to unforeseen circumstances or a change in your requirements will be charged at our hourly rate.” ! (In other words, you could end up paying much more than your original budget) Scenario 1: “I need custom software developed for my business. My deadline is 10 weeks from now.”
  9. 9. Option 1: Keep Quiet About the £100k Budget You. Software development company Scenario 1: Scenario 2: “Sure, we can do that in time for your deadline. Allowing for all possible permutations we can do it for £180,000.” Sure, we can do that in time for your deadline. It’ll cost £80,000. Any additional work required due to unforeseen circumstances or a change in your requirements will be charged at our hourly rate.” ! (In other words, you could end up paying much more than your original budget) “I need custom software developed for my business. My deadline is 10 weeks from now.”
  10. 10. Option 1: Keep Quiet About the £100k Budget You. Software development company So you sign a contract with a fixed price, and details of exactly what you’re getting for your money
  11. 11. So what about Option 2?
  12. 12. Option 2: Disclose your budget
  13. 13. Option 2: Disclose your budget You. Software development company
  14. 14. Option 2: Disclose your budget You. Software development company “I need custom software developed for my business. I’ve got a budget of £100,000.”
  15. 15. You’ll have a ‘working version’ to review almost right away, giving you scope to provide immediate feedback…
  16. 16. You can see the software developing in real-time, ensuring you’re on the right track…
  17. 17. This way of working is called ‘Agile.’
  18. 18. No need to spend days creating a long technical specification that few people read and even fewer understand! The benefits of Agile software development include:
  19. 19. Fixed deadlines - work is carried out through a series of
 fixed development phases (sprints) which are usually 1-2 weeks long. The benefits of Agile software development include:
  20. 20. Highly visible progress - at the end of each sprint, you’ll have
 properly finished, working features, which can be tested by
 your project team and end users. The benefits of Agile software development include:
  21. 21. Face to face analysis - all analysis and design work is 
 done together in a face to face Sprint Planning meeting. The benefits of Agile software development include:

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