Contract-First development of services will help companies move towards a service oriented architecture (SOA). When you can abstract code into services, it makes it easier to use those services as pieces and plug them into where ever they might be needed. By first building the service's contract, it provides the structure to define and make those pieces work together.
However, what IS a service? Some might say "it's a web service" or "It is creating modular, reusable code." It is true that the web service standards are important and re-usability is an important attribute. However, by taking the view that a service in an SOA is more similar to a lawn service than a web service helps debunk the notion that services are simply code that can be easily called from anywhere (Modularity). Instead, it allows us to consider that a service as a stand alone piece of functionality.
When you hire a traditional service such as a lawn service, the first thing that occurs is an agreement as to what will be done. The elements of this agreement include the name of what will be done, what the customer has to provide and what the end result will be. The agreement will also include performance and response time criteria. In the end, as a consumer, I don't generally care if my lawn care provider cuts my grass with a 20k dollar mower or a push power or a pair of scissors. The implementation is up to the provider, SO LONG as it is implemented meeting the agreement. We call this agreement a contract.
Services found in an SOA also need this type of agreement. A service contract includes both functional and non-functional requirements. The functional requirements include what the service does, the service interface and the means of invocation. the non-functional requirements include service level agreement, security and quality of service, transactional constraints, process and semantic definitions.
You might ask, "Why do I need this contract? What does it provide for me? Can't I just use the interface?" The reason you need it is to give the service it's own scope of responsibility. A basic tenet of SOA is that a service is an autonomous unit of functionality. Also, it provides a definitive scope of what that service need to provide. A contract increases visibility and provides a neat package of functionality that can be used as a component in our application infrastructure.
Another advantage in knowing the functional requirements is that before the code is even created, test cases can be developed to determine if the services performs the required functionality within the constraints of the contract. Some call this test-driven development.
Stability of the system is critical when you create a SOA. This stability is improved by the versioning of ontracts. Once a contract is established, it can not be changed and it must be supported as long as consumers exist for it. However, new versions can be cloned and modified. By having both versions of the contract supported, new functionality can be built and made available to early adopters while the old contract is still supporting other applications. This allows a company to be agile in reacting to business changes while not breaking existing applications.
Lastly, the contract should state ownership and responsibility matrix. This is in the form of who is involved as well as who is responsible for the evolution of the service. The RACI is a great starting place to show these stakeholders.
RACI stands for Responsible, Accountable, Consulted and Informed. I have always had an issue between Responsible and Accountable. They seem very similar. So lets do the easy ones first.
Consulted represents the set of people who have input in to the contract. They are typically the main consumers or business subject matter experts. The important part is that this is a two way communication. Informed are the set of people who need to know about changes or the development of the contract, but do not have a voice in its creation. This is a one-way communcation.
Now for the difference between Responsible and Accountable. Responsible to me is the person who owns the problem or, hopefully, owns the vision. Accountable seems to be the person who has to approve it. One variation that I like more for the 'A' is assists. Who assists the Reponsible (Visionary/Owner) in making the vision a reality.