Agile software development is disrupting the IT Business. It is replacing the traditional software development (waterfall model) and for a reason. Waterfall model has its time and place still but the benefits and results of agile development are undisputed.

From the business point of view it is intriguing that the contracts in agile projects are astonishingly often traditional or something between agile and traditional. True agile contracts are rare and I can tell you that this is not something that clients are wishing for.

Agile contract is way more client friendly than traditional contract. After signing an agile contract the client does not get locked on the vendor and the whole project same way as in a traditional contract. For the vendor agile contract means that trust and client satisfaction must be earned again and again during and after sprints. Basically the continuance of cooperation is not based on contract but on quality.

This is a nice setup for a successful software development project. First and foremost it is a great setup for longer-lasting cooperation or even a partnership between client and vendor.