When you contract with a provider, you want to know what you'll be paying and what you'll be getting. It's totally understandable, and we know that a fixed-bid budget seems like a very reasonable thing for your outsourced projects. Paying on a time and materials basis can seem way too open ended, and some clients—maybe even you—think this type of compensation scheme incentivizes foot-dragging and inefficiency in the name of higher billables. When it comes to software development, though, fixed budgets are a BAD idea. here's why.