Outcome Metrics for Outsourced Software Development Contracts

As a direct result of the difficulties of measuring software development, the success of development tends to be measured in input metrics. For internal software development (and any outsourcing that is included in that), organizations tend to manage this output measurement problem at a macro level, by allocating a “reasonable” budget for software development (an input), estimating what projects can be delivered for that budget, and then prioritizing according to the organization’s strategic and tactical needs (outputs at a macro level). But, this macro approach does not really work for outsourcing contracts.

In this article, Mike Harris offers a solution via vested outsourcing.


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