[thelist] development time cost on new functionality

[Martin Burns]

On 20 Jul 2011, at 06:49, Ken Schaefer wrote:

> Yet, empirically, major consulting companies that are in the business of making a lot of money, use these models. So, they are just doing it wrong?

Frequently, yes. 

> I don't work in consulting anymore - I left ACN.

I still do work for a large Three-Letter systems integrator with a large amount of saleable IP, and have a degree of input into customer solutions. I've seen us get it wrong, and the competition, selecting commercial models that are both mildly and egregiously poor fits for the customer needs. And both sides are guilty of pushing the wrong model - customers too. So do you accept the wrong model (that still makes you money, perhaps a *lot* of money) or lose the contract? It's a tough choice.

> But I work as an architect in HP Enterprise Services now, and I know that HP ES and HP GSS offer all three models: fixed price, T&M, product-based.


But these are far from the only models available - just think about some of the models you could set up that give you a share in the value you create (which is also very low risk for the customer).

Cheers
Martin

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