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The growing dependance on software to manage your business has brought custom software development into the focus. From one hand, this approach offers great adaptability to your organisation's specific needs. But from the other - it requires a careful balance between creativity and structured planning.
As the IT outsourcing market expands and offshore development becomes more popular, the potential risks associated with custom software development projects are becoming more evident. In this article we will examine the most important challenges in custom software development. We will also provide strategic recommendations for mitigating these risks to ensure project success and maximise your return on investment.
Together, we will explore the nuances of the software development lifecycle and the specific challenges of offshore outsourcing. We want to share the knowledge and tools, which will help you to make informed decisions and will protect your projects from potential risks.
Understanding custom software development risks
Software development is getting harder and more risky. With technology changing fast, there are many things that can go wrong. Both small and big companies are struggling with the costs and problems of failed software projects.
A recent study by Data Bridge Market Research shows that more people are worried about risks in software development. This has led to a growing need for tools to manage these risks.
Software projects can face problems in many areas, like money & time problems, technical & company issues, problems with security, people or market. Each of these can cause big issues for a project.
Cyberattacks are happening more often and are getting worse. These attacks can cause big problems for businesses. They can lose a lot of money trying to fix things. It's not just about money. Cyberattacks can also damage a company's reputation and make customers lose trust.
Organisational problems can also cause projects to fail. This can happen if:
- One or two employees are doing all the work
- Deadlines are unrealistic
- Team doesn’t communicate well
To handle these problems, companies need to focus on risk management. By finding possible issues early and fixing them, they can make sure their software projects are successful.
Next, we'll look closer at common risks in developing software and how to fix them.
Key risks in custom software development
Building custom software isn't easy. There are lots of things that can go wrong. To make good custom software, you need to have software development risks analysis. Let’s talk about the biggest ones.
➡️ TECHNICAL RISKS
Technical risks can hurt how well your software works. Things like old tech, bugs, or not enough computer power can cause problems. This means your software might not do what it should or be as good as you want.
📍 Common problems include:
- your software doesn't work with other systems;
- there are bugs or glitches in the software;
- you don't have the right people or tools to build it;
- the technology you're using is outdated;
- new technology doesn't work as planned.
To avoid these problems, you need a good plan from the start:
✅ find the right people for your team;
✅ make sure everyone understands the project;
✅ use tools to check for problems early on;
✅ help you learn about new technology;
✅ give you advice on how to start small.
➡️ BUDGETARY RISKS
Money problems can happen in any software project. This is called a budget risk. It means spending more than planned.
📍 Why does this happen:
- spending too much, adding extra features after the project starts;
- underestimating costs, not planning for enough money;
- unexpected bills, sudden costs like new tools or fixing mistakes;
- changing prices, the cost of technology can go up or down;
- bad planning, not estimating costs correctly at the start.
These problems can hurt the project. It might mean making the project smaller or doing a worse job. And these are solutions to help:
✅ predict costs by using smart tools for estimation;
✅ find problems early by identifying potential budget issues;
✅ track spending by monitoring costs closely;
✅ adjust plans by helping to change the project if the budget is in trouble.
➡️ TIME-RELATED RISKS
Time is money! Especially in custom software development. Missing deadlines can lose you customers and cost you more money. But rushing things can make your software bad. Most of the time, these problems happen because plans aren't good, and schedules are unrealistic.
📍Things that make this worse are:
- missing goals for the project;
- not guessing how long things will take;
- waiting on other people or things;
- problems with how the team manages time;
- changing what the project is supposed to do.
To make sure your project stays on time, you need to watch it closely:
✅ see how your project is going at any time;
✅ find problems before they get big;
✅ make better plans based on real data;
✅ help your team work together better;
✅ learn from what happened to make future projects better.
➡️ ORGANISATIONAL RISKS
Software projects can go wrong because of problems within the company itself. These issues often happen because of bad rules, systems, or plans. When a company has trouble, it can mess up a project.
📍 Things that can cause problems include:
- the company changing its goals or rules;
- arguments or problems between team members;
- unclear leaders or slow decision-making;
- bad project management;
- the company changing its structure while the project is happening;
- not teaching new employees well enough.
To avoid these things in order to stay on track and succeed you should:
✅ use tools like Slack or Microsoft Teams to help everyone work together;
✅ use PM software to track work, people, and results. Patternica can help you with this by giving you a clear picture of your project, so you know what's working and what's not;
✅ talk to your team and important people often;
✅ make sure everyone knows their job.
➡️ SECURITY RISKS
Cyberattacks are on the rise. This makes software development a risky business. Hackers can steal data, take control of systems, and cause big problems. These attacks can come from anywhere, including inside your company.
📍 What causes these problems?
- weak spots in software that hackers can use;
- poor security planning from the start;
- not following security rules;
- mistakes made by employees;
- outdated software without important updates.
Security should be part of every step of software development. The vendor you work with can find security problems early on, suggest improvements, and make sure your software meets the highest security standards. It can also train your employees to be more aware of cyber threats.
➡️ HUMAN RESOURCES RISKS
People matter in software projects. Things like not having the right skills, team problems, and people leaving can hurt the project a lot. These people's problems can be hard to fix and can happen in many ways.
📍 Common problems are:
- people leaving the project;
- team members don’t have the right skills;
- people on the team don’t talk well;
- people are overworked and tired;
- people don’t want to use new things.
It’s really important to keep the same people on a project. This helps the project stay on track.
➡️ MARKET RISKS
Market risks are things that can happen outside your project that might hurt it. These things are often hard to predict and can change quickly. They could be about the economy, what people like, or new laws.
For example, a new competitor, a bad economy, new rules, or better technology could all be problems.
📍 What to do in order to protect your project:
- keep an eye on things, always watch what's happening in the market and with the rules;
- be ready to change, your plans should be able to change quickly if things change;
- have a backup plan, get ready for things to go wrong and have a plan for what to do.
Outsourcing software development risks gives you more time to adjust your plans. The cooperation can also help you see how changes might affect your project, so you can be ready for anything.
Tips for risks management
Both the company and the software developers need to work together to handle risks. When you hire a software company to build something for you, both of you share the responsibility for keeping things safe. Here are some tips to help you work with a software company to lower risks:
✔️ Know your vendor
Before you hire a software company, check how they handle security and risks. Make sure their security rules match yours.
✔️ Talk often
Communicate with the software company often. Tell them about any new risk of software development or problems. Working together helps everyone find ways to make things safer.
✔️ Plan for risks early
Think about risks from the start of the project. This helps you handle problems faster. Good PMs know how to plan for risks and keep track of everything. They use tools to help them stay on top of things.
Conclusion
Building custom software can be tricky. There are many things that can go wrong, like spending too much money, missing deadlines, or having security problems. These problems can be a big deal for businesses.
Patternica can help you avoid these issues. We can help you plan your project, find the right people, and keep your software safe. If you want to make sure your software project is a success, Patternica is here to help.