Fixed price Agile projects. How it works

This paper focuses on the management of the Agile projects running under Fixed Price Contracts. On May 2008 Exigen Services announced the launch of Innovative Fixed-Price Agile Package. Flex-agility is a packaged services offering which combines Agile methodologies with customer-aligned governance and fixed priced commercial terms. This package provides customers certainty in on-time and on-budget delivery, eliminating the difficulty of changing requirements while guaranteeing maximum value from their IT investments. The Flex-agility offering provides for changes to be introduced during any project without impacting the original schedule or budget. Use of Agile methods reduces the financial risks associated with large IT projects by treating the cause of the risk, not simply applying off-shore manpower. The paper examines the experience of running this model and describes the details, know-how and success factors that should be met to work under these types of contracts. At this moment several Fixed Price Agile contracts were completed and running and also this contractual model became standard approach for some of the large customers that have multiple projects running in XS.