Open Source Cloud Authors: Liz McMillan, Jason Bloomberg, Yeshim Deniz, Stackify Blog, Vaibhaw Pandey

Related Topics: Java IoT, Microservices Expo, Open Source Cloud, Machine Learning , Silverlight

Java IoT: Blog Feed Post

Five Questions to Ask Before You Take Up an Agile Contract

The biggest challenge of adopting agile for an outsourced project is there aren’t any clearly defined best practices available

You are a software service provider. You develop software for you clients. Majority of your clients are from a different city or even a different country. You are in a discussion with your client where you are exploring the option of adopting Agile Development Methodology for your next project.

Does the above paragraph describe you? Are you concerned about how the whole thing will work out?

If the above paragraph describes you, then I can assure you that you are not in minority. Many of us have been in a similar situation.

The biggest challenge of adopting agile for an outsourced project is that there aren’t any clearly defined best practices available which you can adopt. The whole field is still evolving and the best practices are yet to emerge.

So, what should you do to increase the chance of success?

Obviously, you will have to find the answer yourself. To find the right answer, you need to ask the right question!

Let me set you thinking on what questions you need to ask. Here are 5 of them:

1. Is your understanding of Agile same as your clients understanding of Agile?
Please remember, there is no common accepted definition for agile. Yes, there is the Agile Manifesto but that can hardly be called a definition. It is more of a vision of how to develop software which delivers business values. The manifesto indicates that the best way to develop software is to create a “co-located” “cross-functional” team of “competent” individuals and allow them to “self-organize” and deliver “working” software “regularly” which delivers “business-value”.

In today’s complex globalized world it may be impossible to keep the software team small and collocated. The prescribed method of software development becomes infeasible when the size of the problem grows beyond a point. Yes, one small team can be very productive but there are many real life problems where it becomes impossible for a single team to handle. Similarly, when experts across multiple locations need to collaborate, co-location is not really an option. As a result, where outsourcing is involved, the agile process will deviate from what is envisaged in the manifesto.

There isn’t any common understanding of what the deviation should be. So you need to have your own interpretation of the “agile methodology” that you want to follow. What you need to keep in mind is that your interpretation may be different from what the client expects. So, the most important task should be to identify how much is this difference in interpretation?

If the difference is small then you would be lucky because you would have crossed the biggest hurdle. However, if the difference is significant then you need to decide if you want to follow your client in agile adoption or do you want to act as the thought leader and convince the client about your interpretation?

If you have a mismatch of the interpretation it will definitely result in mismatch of expectation and erosion of trust.

2. On what basis are you going to get paid?
Though one of the 4 principles of agile manifesto is “Customer Collaboration” over “Contract Negotiation”, in an outsourcing situation it is impossible to avoid contract negotiation. The key element in your contract is going to be a mechanism or a formula to derive how much you are going to get paid for the service that you are rendering.

If client is willing to pay based on the hours logged by the team members and ready to take the responsibility of the output of the team then you don’t have to worry.

The current trend is to link the payment to output. There is no standard method of achieving this and you need to work it out with each client separately. There are two alternate mechanisms to achieve this.

In the first one you agree on a scope of work and a price for the same. The scope can be defined for an “iteration” or for a “release”. You also agree on a mechanism for arriving at the deviation from the agreed scope and method of calculating how much you will be compensated for the extra work. Alternately, you can come up with a formula to calculate the size of the work delivered and a method of calculating the price for that. However, whatever may the mechanism be, it should appear to be fair for both parties.

You need to work for a win-win without which you will not be able to build the trust required for the success of the agile project.

3. How will the iterations be accepted? How will the project close?
In most cases, your payment will be linked to a milestone. It may be on a completion of “iteration” or the delivery and acceptance of release. Will the client pay you as soon as you make the delivery or will the pay only after they have verified the delivery and found it acceptable. What happens if there are bugs? Would you have to fix them before you are paid? Will that be a separate delivery or will they be fixed in the next iteration. What happens if there is a delay in reviewing the delivery?

Best way to overcome this problem is to deliver good quality software and adjust your iteration cycle-time to match the client’s ability to review it, give feedback and finally accept the delivery. Also, it is a good idea to have a clear understanding on how the project is going to be brought to a closure. In the over eagerness to start the work, the method of acceptance may not be fully resolved.

It would a big mistake not to address the issue of “method of acceptance” before starting the engagement.

4. Will your communication infrastructure measure up to client expectations?
Insisting on co-location while outsourcing a project may not make sense. In most cases it will defeat the purpose of outsourcing. Therefore once you give up on one of the original agile premise of cross-functional collocated team you will face another set of challenges. Irrespective of what agile may say, tools processes and technology will come to your aid to ease the burden of multiple locations.

You need to put in place suitable infrastructure which will support direct interaction between all members of your team and the product owner and other relevant people in the client organization without any delay. You also need to have in place suitable tools and process in place for sharing information like story, backlog, open issues, bugs etc. You also need to figure out if all your team members are comfortable and confident about discussing road blocks with the client representative.

For a distributed team it is difficult to achieve continuous interaction without the support suitable technology and infrastructure support.

5. How transparent do you have to be about your team composition and organization?
Is self-organizing team a necessary precondition for executing an agile project? The view among the experts range from (A) “yes, it is a must” to (B) “it is a good thing to have but not mandatory”.

If your clients fall into the second category and he leaves the problem of team organization to you then you don’t have to worry too much about team self-organization. If you are able to create a self-organizing team you will be better off and be more productive. Without that also you will still survive.

However, if the client insists that the team has to organize itself, the scrum master will only play the role of facilitator and you are not going to have a project manager then you need to clearly understand the implication. If your whole organization is only using agile methodology then you may not have a problem. But if like most of software service provider you use a mix of many different development life-cycles – this distinction becomes very important.

To support self-organization you will need mature team members and experienced scrum master.


There is enough evidence that agile works better than traditional methods … even in outsourcing situation.

Therefore, agile is going to get adopted – question is “are you prepared”?

[A version of this article is also published in Global Delivery Report]

<< Previous5 Questions You Need To Ask Before You Outsource An Agile Project

More Stories By Udayan Banerjee

Udayan Banerjee is CTO at NIIT Technologies Ltd, an IT industry veteran with more than 30 years' experience. He blogs at http://setandbma.wordpress.com.
The blog focuses on emerging technologies like cloud computing, mobile computing, social media aka web 2.0 etc. It also contains stuff about agile methodology and trends in architecture. It is a world view seen through the lens of a software service provider based out of Bangalore and serving clients across the world. The focus is mostly on...

  • Keep the hype out and project a realistic picture
  • Uncover trends not very apparent
  • Draw conclusion from real life experience
  • Point out fallacy & discrepancy when I see them
  • Talk about trends which I find interesting

@ThingsExpo Stories
DXWordEXPO New York 2018, colocated with CloudEXPO New York 2018 will be held November 11-13, 2018, in New York City and will bring together Cloud Computing, FinTech and Blockchain, Digital Transformation, Big Data, Internet of Things, DevOps, AI, Machine Learning and WebRTC to one location.
DXWorldEXPO LLC announced today that ICOHOLDER named "Media Sponsor" of Miami Blockchain Event by FinTechEXPO. ICOHOLDER give you detailed information and help the community to invest in the trusty projects. Miami Blockchain Event by FinTechEXPO has opened its Call for Papers. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Miami Blockchain Event by FinTechEXPO also offers s...
DXWorldEXPO | CloudEXPO are the world's most influential, independent events where Cloud Computing was coined and where technology buyers and vendors meet to experience and discuss the big picture of Digital Transformation and all of the strategies, tactics, and tools they need to realize their goals. Sponsors of DXWorldEXPO | CloudEXPO benefit from unmatched branding, profile building and lead generation opportunities.
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
Digital Transformation and Disruption, Amazon Style - What You Can Learn. Chris Kocher is a co-founder of Grey Heron, a management and strategic marketing consulting firm. He has 25+ years in both strategic and hands-on operating experience helping executives and investors build revenues and shareholder value. He has consulted with over 130 companies on innovating with new business models, product strategies and monetization. Chris has held management positions at HP and Symantec in addition to ...
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
As IoT continues to increase momentum, so does the associated risk. Secure Device Lifecycle Management (DLM) is ranked as one of the most important technology areas of IoT. Driving this trend is the realization that secure support for IoT devices provides companies the ability to deliver high-quality, reliable, secure offerings faster, create new revenue streams, and reduce support costs, all while building a competitive advantage in their markets. In this session, we will use customer use cases...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
DevOpsSummit New York 2018, colocated with CloudEXPO | DXWorldEXPO New York 2018 will be held November 11-13, 2018, in New York City. Digital Transformation (DX) is a major focus with the introduction of DXWorldEXPO within the program. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of bus...
With 10 simultaneous tracks, keynotes, general sessions and targeted breakout classes, @CloudEXPO and DXWorldEXPO are two of the most important technology events of the year. Since its launch over eight years ago, @CloudEXPO and DXWorldEXPO have presented a rock star faculty as well as showcased hundreds of sponsors and exhibitors! In this blog post, we provide 7 tips on how, as part of our world-class faculty, you can deliver one of the most popular sessions at our events. But before reading...
DXWorldEXPO LLC announced today that "Miami Blockchain Event by FinTechEXPO" has announced that its Call for Papers is now open. The two-day event will present 20 top Blockchain experts. All speaking inquiries which covers the following information can be submitted by email to [email protected] Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expe...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...