Compare fixed-price, time-and-materials and hybrid pricing models for agile outsourced delivery.
Project Management
Agile Contracting Models for Outsourced Software Delivery
Design and negotiate contracting models that support agile outsourced software delivery, moving beyond fixed-price and time-and-materials structures to shared-risk arrangements.
🗓️Duration5 training days
📚Content4 modules · 8 sessions
🎓On completionAccredited attendance certificate
About the programme
Course Overview
Fixed-price contracts assume scope that will not move and time-and-materials contracts assume flexibility with few cost guardrails, and neither sits comfortably with agile delivery's evolving backlog and shared accountability for results. This course is for procurement, legal and delivery professionals who negotiate or manage outsourced agile work. It covers pricing models such as capped time-and-materials, target-cost with gain-share, and outcome-based pricing, drafting statements of work that describe ways of working and acceptance at the level of working software rather than fixed deliverable lists, and governance structures that assess vendor performance through demonstrated increments instead of milestone documents. Teaching includes contract clause drafting exercises and vendor negotiation simulations built around realistic disputes. Participants leave with a contract structure and governance model suited to one live or upcoming outsourcing scenario.
Expected Learning Outcomes
Draft statements of work that describe agile ways of working instead of fixed deliverable lists.
Negotiate target-cost and gain-share arrangements that align vendor and client incentives.
Design governance structures that assess vendor performance through working software increments.
Manage intellectual property, data protection and security terms suited to iterative delivery.
Handle scope and priority changes within an agile contract without triggering constant change orders.
Evaluate vendor performance using velocity, quality and outcome measures rather than milestone compliance.
Who Should Attend
Procurement specialists negotiating software development outsourcing agreements.
Delivery managers overseeing vendor teams working in agile or Scrum arrangements.
Legal counsel drafting or reviewing agile-friendly statements of work.
Vendor account managers proposing agile delivery models to enterprise clients.
Programme sponsors accountable for outsourced agile delivery outcomes and budgets.
PMO leads standardising outsourcing contract templates across the organisation.
Course Modules
Select any module to see its sessions and points.
01Pricing Models for Agile Outsourcing
2 sessions · 8 points
Session 1Limits of Fixed-Price and Time-and-Materials Contracts
- Explain why fixed-price contracts conflict with agile's evolving backlog and changing priorities.
- Identify the risks time-and-materials contracts create around cost predictability and vendor incentive.
- Compare capped time-and-materials arrangements as a middle path between the two extremes.
- Assess which pricing model fits the client's risk appetite and scope certainty at contract start.
Session 2Target-Cost and Outcome-Based Pricing
- Design target-cost contracts with gain-share and pain-share mechanisms tied to delivery performance.
- Define outcome-based pricing structures linked to business results rather than effort delivered.
- Set baseline estimates and adjustment mechanisms for target-cost contracts as scope evolves.
- Anticipate disputes that arise from ambiguous outcome definitions and mitigate them in drafting.
02Drafting Agile-Friendly Contract Terms
2 sessions · 8 points
Session 1Statements of Work for Ways of Working
- Draft statements of work that describe team composition, cadence and governance instead of fixed features.
- Define acceptance criteria at the level of working software increments rather than final deliverables.
- Incorporate backlog and roadmap references by pointer rather than embedding fixed scope in the contract.
- Align contract change mechanisms with sprint or release boundaries to reduce administrative overhead.
Session 2Intellectual Property, Data and Security Terms
- Clarify intellectual property ownership for code, designs and documentation produced iteratively.
- Set data protection and security obligations appropriate to iterative access and deployment practices.
- Address subcontracting and offshoring terms where vendor teams span multiple jurisdictions.
- Define exit and transition assistance terms that protect continuity if the contract ends early.
03Governing Vendor Performance in Flight
2 sessions · 8 points
Session 1Governance Structures Beyond Milestone Sign-Off
- Design governance forums that review working software demonstrations rather than status documents.
- Set escalation paths for quality, velocity or engagement concerns raised during delivery.
- Balance client oversight with vendor team autonomy to avoid undermining agile ways of working.
- Define joint backlog refinement and prioritisation practices between client and vendor.
Session 2Handling Scope and Priority Changes
- Establish a lightweight change process for reprioritising backlog items within agreed capacity.
- Distinguish changes that fit within existing contract terms from those requiring formal amendment.
- Manage stakeholder expectations when reprioritisation delays previously anticipated features.
- Document change decisions sufficiently to support later performance and cost reviews.
04Measuring and Renewing Vendor Relationships
2 sessions · 8 points
Session 1Performance Measurement Beyond Milestone Compliance
- Define vendor performance indicators covering velocity trends, defect rates and delivered outcomes.
- Combine quantitative delivery metrics with qualitative stakeholder satisfaction assessment.
- Conduct periodic vendor performance reviews aligned with contract renewal or extension points.
- Address underperformance through structured improvement plans before considering contract exit.
Session 2Renewal, Exit and Lessons Learned
- Plan renewal negotiations using accumulated performance data rather than relationship sentiment alone.
- Prepare exit and knowledge transfer plans that protect delivery continuity if switching vendors.
- Capture contracting lessons learned to refine templates for future outsourcing agreements.
- Benchmark contract terms periodically against evolving market practice for agile outsourcing.
What the participant receives
4 course modules
A structured syllabus
8 training sessions
across 5 days
32 detailed points
Applied, detailed content
Accredited attendance certificate
On completing the programme
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