10 June 2019
At Novataris We Often Advise Our Clients Against Expensive Fixed Price Contracts
We do this because we respect the client's budget and know that the route to the goal often changes along the way
At first glance, it may seem that a fixed price is the favourable and safe choice. But when it comes to customised digital universes, a fixed price is often far from as simple as it sounds.
There are many things to consider when a company undergoes a business transformation, as it often does when an IT solution needs to interact with many aspects of the business. In addition, business priorities may change. Although the framework is perfectly clear from the outset, the plan is set and the specific objectives that provide business value to the client are specified, business needs often change along the way and so does the route to the goal. There are many parameters that cannot be overseen when the project isstarted.
It's simply a recognition that we're getting wiser along the way and don't want to tie ourselves down more than necessary from the start. Indeed, the unknown parameters often make the price very high or too low, resulting in developers being forced to cut corners. This means that in the end, it is always the client who ends up paying - either in Monetarily or in the quality of the solution.
In a world where everything is constantly changing, flexibility consequently creates significant value. However, when changing the direction, the time and money spent are also affected, and it can be very difficult to estimate the exact costs without compromising on quality.
Instead, we believe in human relationships and close cooperation - that the basis for the best solution grows from a trusting relationship. We build this trust through honest communication on equal terms and, most importantly, with respect for the client and the defined budget. The client always knows how their exact requirements are being fulfilled, which creates transparency about what money and time is being spent on. Although not all requirements are always fully known from the outset, we do what we can to work within the agreed framework.
What does agile software development mean to us? We believe that the trust on which we base our work comes through our collaboration. "Agile" is indeed a term that has caught on when it comes to processes and software development. At Novataris we also strongly believe in the practices of joint planning, lots of face-to-face communication, shorter sprint-based development cycles with continuous demonstrations and constant clarification of needs. But we are not methodically religious, and only rigorously follow the methodology to the extent that makes sense in relation to the client.
At first glance, it may seem that a fixed price is the favourable and safe choice. But when it comes to customised digital universes, a fixed price is often far from as simple as it sounds.
There are many things to consider when a company undergoes a business transformation, as it often does when an IT solution needs to interact with many aspects of the business. In addition, business priorities may change. Although the framework is perfectly clear from the outset, the plan is set and the specific objectives that provide business value to the client are specified, business needs often change along the way and so does the route to the goal. There are many parameters that cannot be overseen when the project isstarted.
It's simply a recognition that we're getting wiser along the way and don't want to tie ourselves down more than necessary from the start. Indeed, the unknown parameters often make the price very high or too low, resulting in developers being forced to cut corners. This means that in the end, it is always the client who ends up paying - either in Monetarily or in the quality of the solution.
In a world where everything is constantly changing, flexibility consequently creates significant value. However, when changing the direction, the time and money spent are also affected, and it can be very difficult to estimate the exact costs without compromising on quality.
Instead, we believe in human relationships and close cooperation - that the basis for the best solution grows from a trusting relationship. We build this trust through honest communication on equal terms and, most importantly, with respect for the client and the defined budget. The client always knows how their exact requirements are being fulfilled, which creates transparency about what money and time is being spent on. Although not all requirements are always fully known from the outset, we do what we can to work within the agreed framework.
What does agile software development mean to us? We believe that the trust on which we base our work comes through our collaboration. "Agile" is indeed a term that has caught on when it comes to processes and software development. At Novataris we also strongly believe in the practices of joint planning, lots of face-to-face communication, shorter sprint-based development cycles with continuous demonstrations and constant clarification of needs. But we are not methodically religious, and only rigorously follow the methodology to the extent that makes sense in relation to the client.
At first glance, it may seem that a fixed price is the favourable and safe choice. But when it comes to customised digital universes, a fixed price is often far from as simple as it sounds.
There are many things to consider when a company undergoes a business transformation, as it often does when an IT solution needs to interact with many aspects of the business. In addition, business priorities may change. Although the framework is perfectly clear from the outset, the plan is set and the specific objectives that provide business value to the client are specified, business needs often change along the way and so does the route to the goal. There are many parameters that cannot be overseen when the project isstarted.
It's simply a recognition that we're getting wiser along the way and don't want to tie ourselves down more than necessary from the start. Indeed, the unknown parameters often make the price very high or too low, resulting in developers being forced to cut corners. This means that in the end, it is always the client who ends up paying - either in Monetarily or in the quality of the solution.
In a world where everything is constantly changing, flexibility consequently creates significant value. However, when changing the direction, the time and money spent are also affected, and it can be very difficult to estimate the exact costs without compromising on quality.
Instead, we believe in human relationships and close cooperation - that the basis for the best solution grows from a trusting relationship. We build this trust through honest communication on equal terms and, most importantly, with respect for the client and the defined budget. The client always knows how their exact requirements are being fulfilled, which creates transparency about what money and time is being spent on. Although not all requirements are always fully known from the outset, we do what we can to work within the agreed framework.
What does agile software development mean to us? We believe that the trust on which we base our work comes through our collaboration. "Agile" is indeed a term that has caught on when it comes to processes and software development. At Novataris we also strongly believe in the practices of joint planning, lots of face-to-face communication, shorter sprint-based development cycles with continuous demonstrations and constant clarification of needs. But we are not methodically religious, and only rigorously follow the methodology to the extent that makes sense in relation to the client.