• A 2020 CISQ report found that the total cost of unsuccessful development projects among US firms is an estimated $260B, while the total cost of operational failures caused by poor quality software is estimated at $1.56. (2020 CISQ report)
• The Standish Group’s 2020 CHAOS report estimates that around 66% of software projects fail. (2020 CHAOS report)
• The global spending on enterprise software is projected to reach $856B in 2023, up from $517B in 2019. (Statista.com)
• The global consumer spend on mobile apps reached $68.7B in Q4 2022, up 17% year-over-year. (Statista.com)

The top two statistics paint a bleak picture of the current software development scenario. The following two clearly indicate the phenomenal increment software development markets are likely to experience. What an incredible opportunity to capitalize! But wait, what about the high failure rates?

Let's analyze the root cause and understand how to overcome these development failure challenges. Before proceeding any further, be warned that every project is unique, and there is no one-stop solution to its challenges. Given below is just a compilation of the top 10 challenges common to almost all software development projects. So, gain a deep understanding, implement relevant correctives, and be better prepared to ensure the success of your next software development project.

Unclear goals and objectives
Every project should start with a well-defined strategy that defines what is required and what you must do to meet those requirements. Such a strategy will help you set and focus on achieving deadlines. Without this, your project will function in a reaction mode where you will be endlessly playing catch-up. Such a situation tends to escalate out of hand and end in chaos.

Solution: Commence your project by scheduling a meeting with the stakeholders involved. Listen and understand what they want; document them to ensure you know the timelines, budget, and deliverables. Chalk out a proper roadmap for executing the project tasks and ensure you adhere to it.

Lack of resource planning
The single biggest reason for software development failure is “wrong people and wrong technology”. Poorly managed resources result in delays, cost escalations, quality defects, and even total failure in project execution. Inadequate resources or improper placement of resources result in a similar outcome. In such a project, the team members are generally pressured to achieve unrealistic targets.

Solution: Identify your resource strengths and allocate the project work accordingly. Plan their work timelines in advance. Have a backup plan for when additional resources might be required due to absence or work pressure.

Poor communication
Did you know that communication is the most critical component of a product development cycle? Engineers, managers, testers, executives, and other people involved with the project should participate in active project-related conversations. Poor communication results in team members working in siloes, a prospect sure to jeopardize the deliverables.

Solution: Establish effective communication channels between the stakeholders involved. This will enhance mutual trust and understanding, making overcoming project challenges and reaching a consensus on project priorities easy.

Inaccurate time and cost estimates
Software development is a highly competitive field, and sometimes you might want to cut corners, especially with project cost and delivery time. While this might seem like an excellent move to grab a business opportunity, it tends to backfire. However, accurately estimating the time required and the costs involved is extremely important to ensure quality within desired time limits.

Solution: Always remember that your software development project needs to pay for itself. Take into account the fact that additional challenges and unexpected risks might crop up. The result might be an increase in costs or time requirements. Always quote timelines and budgets after keeping a healthy buffer.

Lack of customer-centricity
The user’s viewpoint will help refine the product and improve its quality. For example, working on a project without an inherent understanding of the users involved can result in software rejection due to a bad user experience.

Solution: Understand the nerve of your target user base. Seek out their viewpoints either through surveys or by introducing a beta version. Encourage feedback. Test drive your software frequently using Agile methodology and keep the users involved throughout the SDLC.

Unrealistic expectations
Problems, challenges, and setbacks are a part of any software development cycle. Realize this and stop keeping unrealistic expectations from the project. There is no magic wand that will simply while away all issues that crop up. Solutions can only be arrived at using a mix of healthy discussions, brainstorming, and numerous trial-and-error sessions.

Solution: Encourage open communication and find solutions by leveraging participatory group decision-making.

Inadequate technical documentation
A detailed roadmap documenting all processes involved, from design to deployment, is vital to a software project. However, developing technical documentation for the tech stack and high-level tech architecture involved is mandatory. These documents provide a clear understanding and a guiding vision of the software’s architecture. However, software requirements might change during and after its development, making it mandatory to maintain a detailed record.

Solution: Ensure you minutely document every step, starting with the user requirements, till the final deployment of the software. Address changes in requirements in separate sprints or addendums, keeping the sanctity of the original document intact.

Improper testing or Quality Assurance
What is the first thing you will abandon when faced with a time crunch in software development? You got it. Software testing for bugs, errors, and UI performances!
Ultimately, this compromises the software quality, thereby becoming an essential reason for the failure of these projects.

Solution: Never compromise on quality assurance. Keep testing the developed software in modules and batches during its development. This will save time and make it easier for the developers to debug and correct the codes written.

Poor risk management
Risks and challenges are an integral part of any software development life cycle. You should comprehend these before they appear and take the necessary correctives. Poor risk management can land you in major scope creep.
For the uninitiated, scope creep refers to all uncontrolled modifications made to the project's initial requirements without client approval. This leads to extending the project's scope beyond its original boundaries. What you have is overspent budgets, late-running projects, poor user adoption, and, ultimately, project failure.

Solution: Changes are inevitable in a project. Hence, the occurrence of a certain amount of scope creep is natural. Keep inspecting and analyzing your project to detect anticipated concerns and risks. Implement good risk management practices. This will reduce project uncertainty and increase the chance of timely project completion.

Inexperienced project manager
A rookie project manager is a risk you should never take with a software delivery project. However, their inexperience will increase the likelihood of failure.

Solution: The project manager is an integral part of the project team. Always select a seasoned and resourceful person. Such a person will prove a worthy addition by ensuring the flawless execution of the project.

Final thoughts
While there are many reasons for software development failure, most can be avoided/overcome with knowledge, learning, and awareness. So understand, imbibe, and implement to ensure the success of your software delivery projects.