There aren’t many types of bonds and guarantees in IT sector in particular software development life cycle. This could be due to the facts that there were lack of maturity in this industry in particular developing applications and software for an organization. Prior to this, mostly software development is developed locally by the Electronic Data Processing or EDP where IT department is known previously. Also, IT industry can be considered as an infant in compare to other industry include manufacturing, banking, constructions and others. This inevitably led to handling of contracts in IT industry to be a little immature compared to these other industry.
In IT industry perspectives, there were many terms and conditions which borrowed from constructions industry and contractual obligations are other topics in IT industry who borrowed terms from construction industry. As IT industry rapidly growth, it is enormous effort to keep relying terms from just single industry and this led IT industry to continue to evolved the terms being borrowed from other industries in sustaining its growth.
