Starting a business has become less expensive than before with many loans available in the market wooing entrepreneurs to start. Software Development Companies have taken a splurge into this scenario and have mushroomed into the technology market over the last two decades. But it is a big question as to how many software development companies survive the speed and competition.

In this hi-tech outburst, major chunk of resources are directed towards information technology (IT) software development. Though there is a huge development in the IT industry, there are still many failed software development companies. Several aspects make up to the failure of software development projects of which, one is the human factor. A lot of research is being done to pin point the exact causes of failure of software development companies.

We find that the common points that contribute to these failures

  • Disagreement between different levels of management

  • Lack of training for team

  • Low morale and low skill set among team members

  • Constant moving away of team members from the organization

  • Less communication between team members

  • No incentives to keep teams charged up

  • Structure not in existence fro the development of software

  • Organization of team not working

  • Project goals not defined clearly

  • Accountability and commitment missing

  • Teams not bound in one place

  • Required tools not available

  • Working with impossible or unrealistic deadline


There are a few areas that need a special mention for a software development company to succeed. These areas become a way to gain a competitive advantage. 

  • Targeting the right customer
  • Develop product to suit the customer needs and not expect customers to suit the product
  • Work on product specifications before coding
  • Keep the user interface in tune with the specifications and keep design issues at bay
  • Smaller duration modules are easier to handle
  • Working on difficult modules before proves easier
  • Create commitments by generating accountabilities for milestones and honoring them
  • Have a test phase for automated and manual testing
  • Deliver custom products in an agile fashion
  • Focus on specific market segments

To succeed there are many ways but the wise choose the stable and steady way to sustain the highly dynamic software industry. Though there is no hard and fast rule to ensure success in software development industry the above if followed lead to goodwill and a long-lasting relationship with the clients.

8 Responses to Success of Software Development Companies

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