THOUGHTS ON VALUE-BASED FEES FOR AGILE SOFTWARE PROJECTS

Thoughts on Value-Based Fees for Agile Software Projects

Here’s a quandary – we, as value-based IT consultants, aspire to charge value-based fees for our services (how obvious!). We know that doing so requires tight scope control. As such, this often requires a detailed specification. However, this is the very waterfall model that the agile movement shuns. How do you reconcile scope control, customer satisfaction, and ever-changing requirements with value-based fees? I don’t think it’s preferable – or practical – to do two week iterations on a value-based fee basis. Just as much as value-based fees benefit the client by not requiring them to make an investment decision every time they wish to engage you, they also may trap the consultant into having a value discussion/negotiation with the client for each iteration. Thoughts?


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