Purpose: The purpose of this study is to identify a typology of procurement contracts in the context of software development projects that allows firms to align design flexibility with design uncertainty at the project level. The theoretical lenses of contract theory and software engineering...

We follow the recent literature on <italic>ex post</italic> adaptations in procurement and argue that highly volatile specifications result in multiple variations of fixed price (FP) and time and materials (T&M) contracts. Specifically, placing a cap on specification change in FP contracts prevents specification...

This paper investigates the relationship between market conditions and the value and use of sourcing flexibility for service processes. We develop and analyze a series of models, and we derive expressions for the optimal switching decision, the value of the option to outsource, the value of the...