July 18th, 2007
Hourly Projects and the Cult of Doom
Recently, I was party to a discussion on the topic of hourly contracts in enterprise software services. Here is my take:
Open-ended, hourly projects often balloon in size and scope, precisely because there is little incentive to control costs. In this scenario, the services provider can maximize billable hours, while the customer can fall asleep, allowing this to happen right under his nose.
And the truly weird thing about this nonsensical scenario: it happens all the time.
(Note: packaged, or productized, services is one solution.)
Michael Krigsman is CEO of Asuret, Inc., a software and consulting company dedicated to reducing software implementation failures. Click here to discuss this post with him on Twitter. See his full profile and disclosure of his industry affiliations.
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