Leveraging Agile inFixed-Cost Engagements

Pecha Kucha Presentation

GlobalLogic Agile Community Event, Noida

3rd Nov, 2011

Viresh Suri, CSMProject Manager, GlobalLogic

viresh.suri@gmail.com

Time & Material Engagement

Vendor Partner

Fixed Cost Engagement

Vendor Partner

Does Agile mean Change?

Are changes Changes are welcome everytime ?

Agile =

Does Agile Collaboration with Partner help?

Iteration Demo, Collaboration gives too many opportunities to Partner for requesting changes ?

How do we manage Risks ?

•Time/Effort estimation go wrong

•Unexpected Costs

•Technology challenges

•Key Resources leave

And if the contract is Fixed-Cost ….

Vendor

Partner

The Truth about Changing Requirements

•Changing requirements does not increase work scope

• Requirements don’t change in the Middle of the Iteration

The Truth about Changing Requirements

=

EFFORT will NOT CHANGE

Taking Agile to Fixed Cost

Cost Effort

• Have a Minimum Marketable Release (MMR)

Taking Agile to Fixed Cost

Product > MMR Product < MMR

• The best way to control costs is to have aHighly Productive Team

• Do NOT compromise on :– Test Automation– Unit Testing– ReviewsThese will help team achieve long term productivity benefits, esp. in larger projects

Taking Agile to Fixed Cost

• Maintain status visibility through Burn-Down chart, other metrics

Taking Agile to Fixed Cost

• Risk Management – Add buffers to Estimates where needed

Taking Agile to Fixed Cost

• Risk Management – Add buffers to Velocities when predicting Timelines

Taking Agile to Fixed Cost

Fixed Cost Contracting

Optimistic Time Prediction : Assuming High Velocity of 20 points, Project will be completed in 6 iterations

Pessimistic Time Prediction : Assuming Low Velocity of 15 points, Project will be completed in 8 iterations

Fixed Cost Contracting

Fixed Cost Contracting

– Developer Productivity may be compromised

– Beneficial Change avoided e.g. some change to technology, functionality

– Business change may be prevented

– Often vendors not capable of doing cost estimates in the beginning

What may not align well in Fixed Cost

Thank You !

viresh.suri@gmail.com