4 ms·
Actually, I think fixed cost projects are better. With fixed cost projects you negotiate price for the expected outcome and it is much easier to show if the suc
by lmilcin 7y ago
Actually, I think fixed cost projects are better. With fixed cost projects you negotiate price for the expected outcome and it is much easier to show if the success criteria were not met.
With time and materials projects it is almost impossible to get good results from the vendor. The vendor meets his goals when they deliver the team and they can't be held responsible for results, typically. If you are not happy with the people they delivered you can of course protest but then you just get different people and the people you protested will find place in another project and it does not matter much to the vendor.
- robjan 7y agoFixed cost works on relatively simple, low risk, low innovation projects but not so much when there are lots of unknowns and emerging requirements. An example of low risk would be building a marketing website and high risk would be creating a new system from scratch to replace poorly defined business processes.
- lmilcin 7y agoYou don't really want to outsource innovative projects. You want to keep your best staff with you and have it work on most important projects and outsource the least important but highest volume of work.