What are contracts to acquire IT systems in successive increments called?

Contracts to acquire IT systems in successive increments are referred to as modular contracts. This terminology is used because modular contracts allow for the development and delivery of components or modules of a system in phases rather than requiring the entire system to be delivered at once. This approach enables greater flexibility, allows for adjustments based on user feedback after each increment, and can help in managing risks by breaking down large projects into smaller, more manageable pieces.

Modular contracting is particularly beneficial in the IT sector where technology changes rapidly, and requirements may evolve over the course of a project. By using modular contracts, organizations can ensure that they remain responsive to new information, user needs, or technology advancements, ultimately improving project outcomes.

Phased contracts and incremental contracts might sound similar but are not commonly used as specific terms in the context of IT acquisitions as modular contracts are. Development contracts tend to focus more broadly on the creation of new products or systems rather than the structured delivery of parts in increments. Hence, modular contracts are the precise term that captures the essence of acquiring IT systems in successive increments.