Fixed Priced Projects in Agile

Abstract

Agile software development has established as a reliable alternative to waterfall software development model. Unfortunately the use of agile software development has been limited to time based contracts and not for time limited contracts. The main reason for this limitation is the “Agile manifesto” itself. The forth value of the manifesto states that agile believers find more value in “Responding to change over following a plan”. This is the one of the main reasons why agile software development methods are not preferred for a fixed priced contract or time limited contract. The following case study provides an example on how the agile software development can be used for fixed priced software development contracts even when operating in offshore context. The agile software development concepts were used throughout to plan, execute, monitor, report, etc. for the project documented in this case study.