Contract Type and Pricing Structure and the Practice of Information Systems Development – An Economical Perspective

  • Karlheinz Kautz
  • Bjarke Nielsen
Conference paper

Information systems development takes place within an economical context. Cost overruns are frequently reported and the delivery of information systems within appropriate time and cost limits has even been given as one justification for the utilization of information systems development methodologies [2]. However, the economical conditions, which shape systems development practice, are hardly ever researched and while outsourcing of IT services has been studied for quite a while (see f. ex. [6], [12]), an economical perspective on systems development is rarely applied by the information systems community.


Price Level Opportunistic Behaviour Ground Theory Contract Type Price Structure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. 1.
    Ang, S., Beath, C. M.: Hierarchical Elements in Software Contracts. Journal of Organisational Computing, 3(3) (1993) 329-361.CrossRefGoogle Scholar
  2. 2.
    Avison, D.E., Fitzgerald, G.: Information Systems Development: Meth-odologies, Techniques and Tools, McGraw-Hill, Maidenhead, UK (1995).Google Scholar
  3. 3.
    Banerjee, A., Duflo, E.: Reputation Effects and the Limits of Contract-ing: A Study of the Indian Software Industry. Quarterly Journal of Eco-nomics, 115(3) (2000), 989-1017.CrossRefGoogle Scholar
  4. 4.
    . Bjerknes G., Mathiassen L.: Improving the Customer-Supplier Relation in IT Development, In Proceedings of the 33rd Hawaii International Con-ference on Systems Sciences (HICSS) (2000).Google Scholar
  5. 5.
    Ciborra, C.: Teams, Markets and Systems. Cambridge University Press, Cambridge, UK (1996).Google Scholar
  6. 6.
    Dibbern, J., Goles, T., Hirschheim, R., Jayatilka, B.: Information systems outsourcing: a survey and analysis of the literature. ACM SIGMIS Data-base, 35(4) (2004) 6-102.CrossRefGoogle Scholar
  7. 7.
    .Douma, S., Schreuder, H.: Economic Approaches to Organizations. Third edition. Prentice Hall (2002).Google Scholar
  8. 8.
    Glaser, B. G., Strauss, A. L.: The Discovery of Grounded Theory -Strategies for Qualitative Research. Aldine De Gruyter, New York, USA (1967).Google Scholar
  9. 9.
    . Hansen, B., Kautz, K.: Grounded Theory Applied -Studying Information Systems Development Methodologies in Practice. In Proceedings of the Hawaii International Conference on System Sciences (HICSS-38) (2005).Google Scholar
  10. 10.
    Highsmith, J.: Agile Software Development Ecosystems. Addison-Wesley, Pearson Education, Boston, USA (2002).Google Scholar
  11. 11.
    . Kautz, K., Hansen, B., Jacobsen, D.: The Utilization of Information Sys-tems Development Methodologies in Practice. Journal of Information Technology Cases and Applications, 6 (4) (2004).Google Scholar
  12. 12.
    . Lacity, M.C., Hirschheim, R.: The Information Systems Outsourcing Bandwagon. Sloan Management Review, Fall, (1993) 73-86.Google Scholar
  13. 13.
    . Lichtenstein, Y. & McDonnell, A.: Pricing Software Development Ser-vices. In Proceedings of the European Conference on Information Sys-tems, Naples, Italy, June 16-21, (2003).Google Scholar
  14. 14.
    Lichtenstein, Y.: Puzzles in Software Development Contracting. Com-munication of the ACM, 47(2) (2004) 61-65.CrossRefGoogle Scholar
  15. 15.
    . Madsen, S., Kautz, K.: Applying system development methods in prac-tice - the RUP example. In Proceedings of 11th International Conference on Information Systems Developments, Methods & Tools - Theory & Practice, Riga, Latvia, September, 12-14, (2002).Google Scholar
  16. 16.
    .Overby, M. L., Vang, J., Mahnke, V.: Strategic IT outsourcing (In Dan- ish), Thomsen, Copenhagen, DK (2003).Google Scholar
  17. 17.
    Richmond, W., Seidmann, A.: Software Development Outsourcing Con-tract: Structure and Business Value. Journal of Management Information Systems, 10(1) (1993) 57-72.Google Scholar
  18. 18.
    Sabherwal, R.: The Role of Trust in Outsourced IS Development Pro-jects. Communications of the ACM, 42 (2) (1999) 80-86.CrossRefGoogle Scholar
  19. 19.
    Strauss, A. and Corbin, J.: Basics of Qualitative Research. SAGE Publications, London, UK (1998).Google Scholar
  20. 20.
    Wang, E. T. G., Baron, T., Seidmann, A.: Contracting Structures for Cus-tom Software Development: The Impacts of Informational Rents and Un-certainty on Internal Development and Outsourcing. Management Sci-ence, 43(12) (1997) 1726-1744.MATHCrossRefGoogle Scholar
  21. 21.
    Whang, S.: Contracting For Software Development. Management Science, 38(3) (1992) 307-324.MATHCrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media, LLC 2007

Authors and Affiliations

  • Karlheinz Kautz
    • 1
  • Bjarke Nielsen
    • 1
  1. 1.Department of InformaticsCopenhagen Business SchoolDenmark

Personalised recommendations