"Gigster charges a flat fee, which the company is getting better at determining, so there is no incentive for developers to work more hours and run up charges"
I do not think their definition of software development matches what we do for a living. Seems to me the time spent matches the difficulty of the problem, not the greed of the developer. Unless, of course, you're reinventing code you already invented, in which case you can "estimate" precisely...
"It converts a client’s product proposal into a development plan, and helps Gigster’s army of remote developers plug in pre-made code blocks to efficiently build the app."
Surely if you're just hooking up pre-made code blocks, then you can do it yourself without paying the middleman. Either this is just another name for a consulting company, or their business model involves paying developers piecework rates. They don't seem to realize that if we want to develop for no pay we can do open source, and still use the product ourselves.
The use of money is all the advantage there is to having money. -- B. Franklin