What do you need to know to set up a contractual agreement for an outsourced Scrum project?

pmScum BlogpostThis post is the second post in a series of three about Scrum in off-shore projects.

In the previous postwe explained some of our experiences in setting up a Scrum project with an off-shore team. In this post, we explain the contractual implications. 

The next hurdle to take is to define the type of contract with off-shores. This is always a difficult exercise. You need a right balance of risk distribution between customer and supplier. Often you will have to go with fixed price agreements. There are two main options (both with pro’s and con’s):