In 30 seconds
- Treat vendors as partners in delivery.
- Use agile-friendly contracts and shared cadences.
- Judge vendors on delivered value, not hours.
Choosing vendors
- Proven agile delivery experience
- Willingness to share sprints, reviews and tools
- Stable teams rather than rotating staff
Structuring the relationship
- Agile contracts with flexible scope
- Shared Definition of Done and backlog
- Joint Sprint Reviews
- A clear Product Owner, usually on the buyer's side
Measuring performance
Look at working software delivered, quality and responsiveness, rather than hours billed. Review the relationship regularly, as you would in a retrospective.
Myth vs reality
Myth · Vendors should just follow specs.
Reality · Collaboration gets better results.
Myth · Agile vendor contracts are risky.
Reality · Short cycles limit risk.
Myth · Vendors can't own quality.
Reality · They should share full quality responsibility.
FAQ
Should the vendor provide the Product Owner?
Usually the buyer should, to keep product decisions close to the business.
How do we handle multiple vendors?
Shared cadence, integration and a single backlog.
What if a vendor underperforms?
Address it in reviews; use exit clauses if needed.