From hours to outcomes
What question does this solve?
Section titled “What question does this solve?”Buying hours tells the buyer how much effort was purchased, not whether an accepted delivery exists. Buying a delivery requires knowing what the delivery is. The model proposes making the delivery the reference of the commitment more often, without pretending that hours, teams or capacity contracts become obsolete.
The shift in the reference of a commitment
Section titled “The shift in the reference of a commitment”Orienting a commitment by result means making explicit what someone expects to receive and how its fulfilment will be recognized. Effort is still needed to produce the delivery, but the quantity of effort does not show, on its own, that the result was obtained. This shift can exist in simple relationships, where one person does all the work against an agreed behaviour and acceptance conditions, and in larger operations with many dependencies. Scale increases the need for coordination; it does not change the difference between consuming capacity and receiving a delivery.
The model does not claim that outcome-based contracts are new, or that every service should abandon charging for effort. The question is how to link result, execution and commitment in an operation that allows different compositions of resources. What “result” means is defined on Outcomes: capacity, delivery and benefit of use are different references, and this page is about moving the commitment from the first towards the second.
What changes, and what does not
Section titled “What changes, and what does not”When the result guides the commitment, the composition of execution can be chosen within the agreed conditions: people, agents and automation can take part without the buyer defining each activity in advance. That does not remove the work of estimating, tracking consumption or evaluating outputs; Progressive Estimation, Evaluation and Unit Economics remain necessary.
Hours can stay a useful internal measure of human effort, or part of a commercial agreement. The point is not to treat them as sufficient proof of delivery or as a universal measure of every resource used. In hybrid execution, preparation, processing, supervision and review consume in different ways, and replacing one unit of activity with another does not solve the problem of representation.
Conditions for a delivery-oriented commitment
Section titled “Conditions for a delivery-oriented commitment”| Condition | Why it matters |
|---|---|
| A bounded result | It makes the object of the commitment recognizable. |
| Acceptance criteria | They allow fulfilment to be judged without relying on activity alone. |
| Identified dependencies | They reveal conditions that can limit execution or use. |
| Clear responsibilities | They separate production, clarification, evaluation and authorization. |
| Handling of change | It keeps correction, extension and new information distinct. |
| Feasible execution | It relates the promise to the capacity and context available. |
| Economic sustainability | It considers total cost, price and the exposure assumed. |
If these conditions cannot yet be established well enough, the commitment can concentrate on clarification or exploration. There is no need to simulate certainty about the final delivery in order to start producing useful information, and progressive definition lets work advance without turning all initial uncertainty into an unrestricted obligation or a cost passed on automatically.
When capacity or effort still make sense
Section titled “When capacity or effort still make sense”A buyer may need availability, continuous participation or the flexibility to decide the work over time; capacity can then remain an explicit object of the commitment. Contracting for effort is not a failure when it serves a real need for responsiveness or context and its conditions are understandable. There can also be exploration whose specific result cannot be bounded yet, though its purpose is clear; tracking it should separate authorized effort, learning produced and the decisions it supports. Hybrid forms can combine availability with bounded deliveries. What matters is the clarity of the components and responsibilities, not the name given to the contract.
Progressive consumption as an experience
Section titled “Progressive consumption as an experience”The Delivery Unit keeps the reference of the intention; Delivery Stages produce outputs and information; Progressive Estimation revises forecasts; Pricing forms commercial terms; Progressive Commitment bounds what has been assumed; and the Commercial Gate resolves the authorization. Together they let a buyer purchase an advance and decide on continuing from what was learned. The customer can receive requirements, a prototype and a technical analysis before committing to construction, select a useful subset, ask for an adjustment, or conclude the intermediate commitment. Decisions can be direct or delegated, and the experience can be self-service or assisted; its central property is consuming the service without coordinating every executor.
Accepting an intermediate delivery does not mean receiving software in production, and its value has to match what was bought. Choosing not to build can be an adequate result of a discovery that avoided an inappropriate commitment.
What AI could change
Section titled “What AI could change”AI can take part in interpretation, investigation, production, evaluation and decisions. When those cycles need less continuous direction and preserve quality, they can change the cost of serving a new request, the time needed to present conditions for continuing, and the capacity to fulfil commitments.
The explanation of what might change now is economic. When understanding the intention, preparing an agreement and transferring context take substantial work for each request, buying small portions can cost too much, even if carrying them out is technically possible. Grouping work into larger commitments, or keeping dedicated capacity, may then be the right answer. AI could reduce those recurring costs and allow a different combination of commitment size, shared capacity and autonomy. None of these consequences requires claiming that delivery-based contracting did not exist before.
A hybrid operation can realize this change; full autonomy is a possibility when the delegated scope allows it, not a condition for every service. The material participation of AI has to be related to the viability of the service, not merely to the presence of a tool in production. The effects depend on the complete route: preparation, infrastructure, evaluation, failures, the customer’s coordination and later obligations. Freedom of execution lets the provider look for better compositions within the commitment; it grants no authorization of access, spending or change of result.
In the running example
Section titled “In the running example”The barbershop could buy a developer’s availability to evolve its systems. There the immediate object is capacity, with rules to guide the work. It could instead buy a bounded discovery and then booking with acceptance criteria, leaving reminders for a later decision. In that second route it consumes recognizable advances and commitments, while the provider combines professionals and agents and remains responsible for the agreed outputs. A third possibility would tie payment to fewer missed appointments; that effect would need measurement and attribution of its own, since it also depends on the behaviour of the barbershop’s clients.
The change investigated is widening the viability of the second route, including its intermediate deliveries, while preserving the distinction between capacity, software transformation and business effect, and without forcing every commitment to adopt the same commercial object.
Boundaries and failure modes
Section titled “Boundaries and failure modes”Incentives cut both ways. A delivery-oriented commitment can encourage efficient execution, but if scope or criteria are narrow or inadequate the operation can meet the agreement formally without solving the relevant need. Criteria can also be widened during evaluation, turning new preferences into requirements of a delivery already assumed. A defined price can concentrate some exposure on the provider; variable consumption can leave other exposure with the buyer. No arrangement removes uncertainty or conflict automatically.
From operational viability to adoption. A service can start with classes of demand whose context and acceptance are understandable enough, while others keep needing dedicated capacity or more open investigation. The direction proposed is to widen the set of demands that can be served, not to make all contracting uniform. Showing that execution works and costs are sustainable still does not show a change in the market: buyers have to understand the offer, choose to buy again, decide with less effort, and find value even when they stop before construction. Adoption cannot be inferred from the availability of agents. The coming years, including 2030, frame this hypothesis of expansion, which may appear earlier, advance unevenly, or stay limited.
Not the end of hours. The proposal does not predict the end of hours, teams or capacity contracts. Resources are means of production, deliveries are possible objects of commitment, and benefits need their own demonstration.
Connected concepts
Section titled “Connected concepts”- Economics overview
- Previous: Outcomes, the definition this page applies
- Pricing, the commercial expression of the shift
- The model, where the whole relationship is followed through one demand
- Glossary
Software Delivery as a Service is a proposed model by Renan Deves and Marcelo Scheidt, Independent Researchers. See the paper for citation and license.