Software development costs fall into two categories: capital expenses (CapEx) and operational expenses (OpEx). For managers with limited access to OpEx, the ability to capitalize a larger percentage of software development costs can make the difference between starting a project and having it rejected outright for budgetary reasons. This white paper explains how partnering with an Agile firm can give you the flexibility to capitalize more of your software development costs and get your projects done now.
Whitepaper: Your Software Project…Approved! Discover Agile’s CapEx/OpEx Advantage
|October 19, 2010
Thanks for sharing. This is an interesting and valuable argument for using Agile.
One question – have you looked at how this inter-operates with SRED tax credits (where uncertainty is what drives government contribution)?
Michael, from what we’ve seen the issue around SR&ED often comes not from the development methodology, but from the strength of the claim and supporting documentation. Legitimate claims are those based on development in the face of uncertainty, and these must be supported properly. As long as you have a mature agile team producing adequate documentation and tracking resource hours effectively (using a good agile tool), agile vs waterfall is not a significant factor. SR&ED claims are based on the dollar cost of allowable labor and materials, rather than concern over how the company expenses or capitalizes these.