Five Key Software Development Risks to be Avoided at All Costs

Digitalization is the Blockbuster of the 21st Century, isn’t it? If the products were to be given Oscars for their performances, Digitalisation and Software development would have won the ‘Lifetime achievement award’ for sure! Digitalization is the sensation that has been around for more than two decades now, and yet, it has broken all the conventional marketing theories of the product life cycle.

Since its introduction, the phenomenon has been in the spotlight and has witnessed nothing but growth and maturity with no signs of decline. There is a fair reason for the rise of this concept as well. If you currently look at the top ten brands of the globe, four of them are digital companies -Facebook, Google, Microsoft, and Amazon. And, if we look at the current market scenario, Forbes said it rightly that, ‘Every company is a Technology Company.’

It is no secret that the quickest and most effective way to be a part of the unicorn club is via digitalization and web developments. But, being one of the most sought out custom software development company; we truly understand that is not as easy as people think it is nowadays!Like any product development, many software development risks need to be considered because the success and failure of an idea depending on the ‘calculated risks’ and ‘reckless decision making,’ respectively!

Types of Software Development Risk

The identification and management of risks are very crucial in the Software Development Life Cycle. It determines the failure or the success of any software project that is developing. Let us understand a few types of risks in software projects.

Schedule Risk

This type of risk indicates the real-time or project deadline planning risks. An ineffective routine can harm project delivery and productivity. The risks help to identify how the schedule should be to bypass the hazard. If the schedule risk is not maintained timely, it can directly impact the growth and development of the business. A few examples of common software project risks related to schedules or routines:

1. If time is not allotted perfectly

2. Failure in work completion

3. Haphazard project expansion

4. Improper resource segregation

Economic Risk

Monetary risks define the project-related budget risks. It basically occurs due to unnecessary expenses or overrunning of the estimated budget. The economic estimation of the project should be managed according to the required resources. The company should also keep in mind the risks and possible crises and keep room for budget extension. A few reasons for economic risks are:

1. Improper estimation

2. Unexpected budget expansion

3. Misleading management

4. Inefficient budget tracking

Operational Risks

The operational risks define all the possible crises that may occur during the project development. It is the procedural risks that can occur day-to-day for various reasons. A few of them are:

1. Lack of resources

2. Internal conflict

3. Mismanagement of duties

4. Lack of skillset

5. Insufficient clarity of roles

Technical Risks

It indicates all the risks related to the function of the equipment used to craft the software or project. Some of the functional risks are:

1. Lack of skilled employees

2. Deficiency of technology upgradation

3. Constant requirement changes

4. Improper implementation of plans

How to Manage Software Development Risks?

Managed or not, every project has software engineering risk - it is like a shadow. The matter is how you or the team manages the situation through risk and analysis of software in the process of the software development method. Some of the useful ways to manage the familiar risks are:

1) Analysing and identifying risks

The software developers must analyze the risks, strike them off and describe the possible management plan to develop the company's software. The keys to this stage are efficiency and accuracy. Risks can best be prevented only if the analysis is accurate.

2) Planning crisis management

If there are possible risks involved in the process of software development, there has to be proper software development risk management. With a thorough risk management plan, it is way more likely to reduce the loss and increase the efficiency of the business.

3) Mitigating and screening

By keeping all the risks monitored, an efficient team can develop a project successfully.

4) Signing a Software Contract

Listing down all project requirements, scope, payment terms and other crucial clauses serves as a wide guideline for both the stakeholders. This legal document also protects both project owners and software partners when the other party deviates.

Common Software Development Risks to Avoid

To help you do the right math and save your time and costs, we have listed out some of the software development risk assessments:

Any Software Development Life Cycle (SDLC) consists of five major stages:

• Ideation
• Designing
• Development
• Testing
• Deployment

Each stage is imperative and has its own set of associated risks. When we talk about Software Development risks, right from ideation to deployment- you need the right technical expertise to counter it properly.

But, few software development risks are completely avoidable but are generally NOT avoided by organizations. While each project is different, we have narrowed it down to 5 avoidable risks that are common in all kinds of Software Development Projects:

1. Irrational Requirements and Goals

In our 25+ years of experience as the leading Custom Software Development Company, the one thing that we have dealt the most with is, ‘the rainbow chase’. Nothing is impossible! We do believe in that, but when a person or an organization conceives an idea, it is essential to plan accordingly to complete it.

It is not about the possibility of the project; it is about estimating the right amount of effort, time, and resources that one will need for the project. Also, it is essential to think rationally before investing in goals that do not have the potential to create the deserving ROI.

So, to avoid such risks, it is advisable to partner with technical experts and forms a Centre of Excellence (CoE) to understand the technological and financial feasibility of an idea. Some ideas are just ahead of its time! And some are just a cloud chase! You must take a feasibility test before you venture and invest in any idea.

2. Disdain the Scalability

In a wrestling match, the biggest risk that a fighter makes is that they underestimate the strength of their opponent. Similarly, the biggest risk any company takes in software development is avoiding the scalability of their project. When people choose a software outsourcing company, they avoid the technical expertise and opt for an AFFORDABLE option!

So, it is essential that you choose technology partners who are farsighted experts and can estimate the true scale of a project, and choose a technology that can cater to all the future needs of the project.

3. Pursuing Full Project instead of MVP

If we peek in the past and look at the initial stage of all the grand success projects, most of them started in the market with just the key features, and when they grew in the market, they expanded their scale and reached their true potential!

Time is money, and any business must understand that. Opting for Minimum Viable Product (MVP) is a wise option averse to any kind of full project software development risks because not only companies get to test the feasibility of their projects, if they perform well in the market, they can also get the necessary funds that can help them expand their project without cutting any corners or without facing any financial crunch.

It is also the best way to beta test your product and gets proper feedback in a controlled environment. So when you keep the whole product in the open market, you have the best possible version of the trailed and tested product!

4. Cutting Corners due to Ineffective Planning

In this age of instant gratification, patience is not a virtue found in all. Most companies have the initial funding to kick start the project, but when they take a risk on a hunch and do not plan the project well, higher estimates become their devil’s trap. They are caught in a situation where they cannot afford to move forward or cannot even shut down the project with all the investment that they have made!

So, what they do is they try to cut corners! Not realizing the software development risks associated with it, companies look to cripple their partners to finish the project in a hurry. Ultimately, the project's overall efficiency suffers.

5. Inefficient Go-To-Market Strategy

Though not exactly any software development risks, a faster go-to-market strategy is at the core of speedier projects. Have you ever thought that Apple would have been such a huge success if Steve Wozniak didn’t show the computer to Steve Jobs? The success of any project is highly dependent upon how they reach their potential customers! Most of the MNCs that are market leaders in their industry have more than 50% of their budget funded on Marketing and acquiring new clients.

So, it is essential to plan for an effective go-to-market strategy whenever you plan to market your software and manage your software development risks. No matter how good your product is, it is of no use if your customers are not aware of the product.

Eliminate Software Development Risks with Technological Precision of Radixweb

While the myth circles all it takes in ‘ONE BIG IDEA’ to succeed in the market, you now know that the formula to reach the Unicorn Club is an excellent idea + expert technology partner + effective go-to-market strategy + efficient resource management.

So if you have the idea and are searching for Software Development Services that can help you avoid these software development risks, let’s schedule a call!