How not to go broke on ordering IT development? pt.1

Coming to the studio, customers find themselves in the wild west of estimating: estimates are given without analytics, without understanding the product, and based on inner feelings.?Studios are shooting in the air, hoping to hit the client's expectations.

Cone of uncertainty: In Agile there is such a thing - the cone of uncertainty.?If you got a rating during the first dive into the product, then be prepared for a 4x increase.

The estimate of your project in IT is a living organism.?It must and will change over time.?You have to accept it and be able to work with it.?To do this, you need to constantly communicate with the team and ask to update the forecasts.?

Technical task: the specification is important.?Without it, you will not be able to translate your business requirements into a development language.?The main mistake is to sign the TT at the very start of work, thinking that the TT is a plan.

IT products are not created according to plan - there is too much uncertainty in development.?Therefore, TT should and will change, it's not scary.?It’s scary to agree on new terms and prices every time a product changes.

?Why do many studios still offer the customer to sign the TT and work strictly according to it??I believe that this comes from the reluctance of both parties to build trusting relationships.?If you don’t have a trusting relationship, then you will spend more time negotiating and reevaluating than the product itself.

About fixed payment: ?the cost of developing your project will vary.?Developers learn the real price only in the development process.?But the fixed amount in the contract will not change.?Therefore, the developers will either take an extra 50% from you for risks, or they will sell you improvements at a triple price in order to recoup the losses from an incorrect assessment at the beginning.

The main problem is that you have no control over how much time developers spend on tasks and cannot make the right decisions.?Sometimes it's better to remove a complex feature than spend all your money on it and not get a product.

?The fixed payment format does not require the customer to constantly interact with the performers, which has a bad effect on the product.?You will most likely spend more money than in other work formats.

to be continued…

IT development outsourcing team.?

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