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Do you know 9.9% of every dollar is squandered due to poor project management in software development? 

To make it more understandable: 

If you invest $1 billion on software project development, $99 million is wasted. [1]

Custom software project development has never been easy unless you have a clear set of goals and future scope. Project development encompasses various departments such as stakeholders, developers, QA & testing experts, and IT support. However, bringing all the departments together to achieve a common goal remains one of the biggest challenges for SMEs.  

If any of the above departments derail, it could lead to massive disturbances and hefty losses. You will be surprised by the growing number of software project failures every year and their repercussions. 

1. According to a CIO study, 50% of software projects fail. 

2. The Global Project Management Survey conducted by PMI reports that 27% of them run over budget.


The above number will change every year, but the negative impact on project development and growth remains the same.

Perhaps you’re wondering why most software projects fail? Then, this blog is for you.  

Top reasons why your software project development fails:

Primarily, the software development project failures classified into

1. Organizational failures: It includes poor project management, unrealistic expectations, hiring delays, and poor communication. 

2. Technical failures: It includes choosing the wrong tech stack, incorporating complex features, and being unable to upgrade applications.

Let’s dig deep into this. 

Here are top 7 reasons why your IT/ software development project fails.

  1. Poor project management
  2. Poor risk assessment 
  3. Wrong technology stack
  4. Unrealistic expectations
  5. Over-complexity
  6. Loss of momentum
  7. Not having the right team

1. Poor project management:

A software project development is a collaborative approach of various departments across the organization. Any miscommunication and misalignment of resources can turn your project into a disaster. Which, in turn, impacts the overall development lifecycle. 

Therefore, you need to have an experienced project manager who can understand your business goals and align teams towards the common goal of your organization. 

Above all, you need to adopt project management tools that ensure transparency across the organization.

1. In the IT sector, 17% of IT projects fail so significantly that they could threaten the company’s entire existence.

2. Team communication is improved by 52% with the usage of PM software. [source]

2. Poor risk assessment:

No software project is error-free and ensures 100% security. Having no or poor-risk assessment strategy is another factor indicating your software project development will fail soon. 

Most companies think the software being developed is error-free and can proceed with deployment without any further checks. This is absolutely wrong. 

Risks always exist with software projects. They could be technical vulnerabilities or sudden disruptions. Risk assessment is an important step in being prepared for potential problems that can occur within any software development project.   

For example, you are developing a custom software solution for your eCommerce business to handle 100 purchases at any given time. But, what happens if the number crosses 100? 

Can your server or application handle that overload? 

If you are uncertain about the answer, then, your software application will be at risk and fails to entice customers. 

Therefore, you need to have a risk assessment plan to ensure your project is safe from unexpected downtimes. 

3. Wrong technology stack:

Technology is an ever-changing aspect of software project development. Yesterday’s technology stack might not be a good fit for tomorrow’s update. Therefore, choosing a wrong or obsolete technology stack will leave you behind the competition and limit your growth. 

It is necessary to assess your technology requirements before the commencement of project development. If your technology stack is rigid and not adaptable, you fail to delight customers and foster relations. 

4. Unrealistic expectations:

Sometimes, having too many cooks in a room might not help you get delicious food. Similarly, trying to implement every stakeholder’s idea doesn’t ensure a futuristic solution. Unrealistic and ever-changing requirements are an indication of your software project development failure. 

Conversely, it will impact the overall quality and deliverables. As requirements tend to change every time, undoubtedly, you will miss your project deadlines. 

Read more to know why it is important to meet software project deadlines.

5. Over-complexity:

You always wish to have a futuristic and scalable solution to stay ahead of the competition. But, it doesn’t mean you have to build the application with the most advanced technology. If your team is not well-versed with modern technology and struggles to adopt it, your project will become more complex, which, in turn, leads to failure. 

Incorporating unnecessary features will make your software project more complex and thus its usage. The more complexity in your project development, the more time it takes to complete. Moreover, applications with high complexity fail to entice customers and ultimately impact your business growth. 

6. Loss of momentum:

When you notice the demand for your application is declining, it’s a surefire sign your project is losing its charm. Loss of momentum is one of the major factors of software project development failure. 

With the emergence of competitors and technologies, businesses are introducing a slew of features to remain competitive. Perhaps, all the features might not fit your requirement. Therefore, understanding your future business needs and relying on legacy systems modernization keep you in the marketplace.  

Agile projects are 28% more successful than traditional projects.

7. Not having the right team:

In software project development, the tech team is a linchpin. Having the right team of technology experts with proven experience will be an added advantage for any business. However, for most SMEs tech talent acquisition is still a mounting challenge and often fails to meet their evolving talent needs.  

Hiring delays impact the overall project development, team morale, and deliverables.  

How to overcome custom software development project failures?

Surprisingly, it is a million-dollar question for many SME business owners. They spend months of time and cost to ensure they deliver a project on time and meet customer expectations. In reality, some of the above factors impact project development and growth opportunities. 

If you are facing any of the above challenges, Amzur has got a solution for you. 

Amzur is one of the leading software application development and product engineering services (PES) providers in Tampa, Florida, USA, with a rich experience of more than 15 years. Our custom software development services encompass technology assessment, design, development, software QA testing, modernization, and maintenance.  

Apart from engaging technical resources, Amzur provides you with extended tech development teams to augment your team’s capabilities. Our modern technologies and agile development strategies ensure your product will have competency over others in security and adaptability with improved ROI.  

Want to build a software project that minimizes your time-to-market efforts and achieve bottom-line efficiency? Connect with Amzur’s custom application development team to assess your project requirements. We are always open to discuss and bring a better solution.