Contractual versatility in software business

Abstract

This empirical study addresses the problem of how Commercial-offthe-Shelf (COTS), tailored, and Modified-off-the-Shelf (MOTS) software contracting has been approached, in practice. The focus of the study is on analyzing different contractual characterizations of the three models of software business. The empirical part of the study was completed by analyzing twelve software producing companies-eight were Finnish firms established in the Silicon Valley area in the USA and the rest were local Finnish firms with international operations. The research produced a number of practical insights for managing and developing the contracting process.