Conclusion: A common mistake when engaging third-parties for ‘Agile software development services’ is to use a contract or procurement approach that is at odds with the tenets of Agile software development. In cases where contract and payment terms follow the more traditional ‘fixed price and scope’ statements of work, organisations do not get true Agile development services, and more likely than not, will be frustrated and dissatisfied with results of the project. Instead, organisations should consider using specific styles of Master Service contracting agreements with Agile developers, or accept that the best than can be achieved will be a hybrid “Watergility” approach by the developers.

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