Challenges with lack of trust in agile projects with autonomous teams and fixed-priced contracts

Agile principles and autonomous teams is a challenge in fixed-price, fixed-scope projects which often arise when IT providers work with public customers. We report from a large agile development project, where a software provider is developing a new large administrative system in the public sector in Norway. A qualitative case study was conducted. The data was collected mainly from observations and interviews. The data analysis pointed out several challenges in fixed-price agile projects. One of main challenges was that the project suffered from lack of trust. The customer (with the fixed priced contract) did not trust the software provider (trying to work agile with autonomous teams) and vice versa. Pleasing the customer and stronger customer involvement are actions to create trust, which also will give more room for a flexible scope.

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