Why customer are forced to choose T&M instead of Fixed Cost for software project even though they know T&M is not cost effective.
Let me start this by answering a few high-level logical questions... What model vendor prefer: T&M What model customer prefer: Fixed Price Why customers prefer "Fixed Price"? Because in T&M future cost of service & requirement is uncertain, customers don't know how much time & cost will be for what they are looking for. Why vendors prefer "T&M"? Since the requirement from the customer is not clear, so it would be risked on project profitability due to unnecessary commitment of delivery with a fixed rate and time. In both, the above case requirement clarity is a common cause... Now another big question... "Why the customer is not able to give clear requirements" Customer's lack of knowledge & confidence in requirements. Let me explain, normally, the customer would like to start with giving a vague requirement, now its is the vendor's duty to breakdown the requirement and get a clear picture. During this requirement unde...