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.

1. The Benefits of
Agile
vs.
Fixed Price
Software Development

2. If you want to get custom
software developed for your
business, you’ll usually have:

6. So, let’s say you have a budget of
£100,000 and need the software complete
and deployed in 10 weeks’ time.

7. You have two options…

8. Option 1: Keep Quiet About
the Budget

9. 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

10. 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.”

11. 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.”

12. 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.”

14. 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

25. So what about Option 2?

26. Option 2: Disclose your
budget

27. Option 2: Disclose your budget
You.
Software
development
company

28. 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.”

32. You’ll have a ‘working version’ to review
almost right away, giving you scope to
provide immediate feedback…

33. You can see the software developing
in real-time, ensuring you’re on the
right track…

35. This way of working is called ‘Agile.’

37. 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:

38. 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:

39. 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:

40. 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: