Finally, TopCoder delivers extensive documentation along with the components to the system, which will allow ESPN to change the system in the future as needed, Zehr said.

"They could increase our bandwidth without us necessarily hiring more people, and do it in a way that the code base becomes 'open-source' within our realm so we can add onto it. A lot of times, when you get a finished system, you may have the right to the code, but since it is not developed with a component methodology, you have no insight into the code."

Mike Morris, TopCoder's vice president of software development, said organization's methodology is geared toward eliminating much of the rework that can crop up from communication problems between the business and its developers.

For example, TopCoder has a three-person team that reviews specifications before a project manager provides it to the client for sign-off, Morris said. This ensures that there are no problems with any requirements, he said. In addition, if a client comes up with new requirements after signing off on a development phase, they have to pay extra.

Finally, because TopCoder has amassed more than 400 reusable software components from its competitions, a typical project will be able to tap half of its code from that component library.