Why do Most Software Projects Fail? - And How to Change This

There are many benefits to software outsourcing. However, between 68% and 80% of software development projects fail. Reasons vary across industries. However, here we'll look at the most common reasons why software projects fail and how to avoid these.

Why do Most Software Projects Fail?

Software development success rates are steadily improving. Typically, though when failures occur, they occur for two specific reasons.

Inadequate planning & Unrealistic Expectations

Are you planning to outsource software development, without hiring a business analyst? If so, you may want to think twice.

Software project failure statistics show that delivered software often fails to perform because of poor planning and communication. Often, this is the result of poor communication on the part of software stakeholders.

- Businesses and company stakeholders often fail to communicate software expectations properly.

- Stated software requirements are often too abstract.

- When company stakeholders can’t clearly define expectations, many ‘hide.’ This sees stakeholders shun further communication and hope that delivered products will meet expectations anyway.

In every case, addressing planning and unrealistic expectations can prevent software project failures.

Hire a Business Analyst

The easiest way to properly define software development goals is to hire a business analyst.

To aid outsourced software development, business analysts professionally audit real software requirements and expectations. If desired outcomes aren’t possible, analysts will work with businesses and stakeholders to find a compromise.

In many cases, business analysts can also be retained throughout the software development process. This enables analysts to help ensure that delivered software always meets client expectations.

Failure to Find a Competent Project Manager

As a rule, most companies achieve better success when outsourcing, when they outsource to European countries like Romania. However, when outsourcing development, it isn’t just vital to outsource to the right development team. As well as this, businesses also need to hire a competent project manager.

- Research shows that only 58% of companies that outsource software development appreciates the importance of hiring a project manager.

- 77% of outsourced software development projects that succeed, do so as a result of better project management and utilization of appropriate project management software.

- 60% of outsourced software development projects are completed on time and on budget when stakeholders invest more in project management.

How to Hire the Right Project Manager

Hiring an experienced project manager can dramatically improve software development success rates.

Project managers oversee the development of new software. They manage development teams and communicate directly to business analysts and stakeholders. When hiring a project manager, it is, therefore, important to do so as diligently as you would any other employee.

To hire the best project managers, always look for lead developers who have a track record of bringing projects to completion in industries similar to yours. Most importantly of all, make sure that project managers have exceptional communication skills.

As it stands in 2020, communication is key when outsourcing. Hiring a project manager who can communicate fluidly, should be appreciated as key to realizing end software development goals.