A software project is one of the crucial steps a company takes which is going to result into a huge impact on their organisation. Many IT firms confirmed that their software projects fail due to a number of reasons, or are doomed from the beginning.

According to PMI’s Survey, 14 percent of IT projects fail. However, that number only represents the total failures.

Of the projects that didn’t fail completely,

  • 31 percent didn’t meet their goals
  • 43 percent exceeded their initial budgets
  • 49 percent were delayed
As the software industry is growing, the demand for creating high-scale and feature-rich software applications is increasing for every industry.
However, not all projects go through a smooth road to success. There are many factors and pitfalls that hinder the completion or successful implementation. Let’s understand the top 10 reasons why software projects fail and then map out the solutions to ensure their success.


Reason # 1

Vague Project Requirements

Sometimes, in the haste of starting a project or closing the deal, its requirements are not clarified or communicated properly. There can be poor communication and misunderstanding between the parties who enter into the agreement which can turn into a big problem in future or in the middle of the project.

Reason # 2

Lack of Clarity and Objective

When the purpose of creation of the software is not defined or a long term plan to scale it is not communicated, there can be a huge difference in the outcome of the project. Major times it happens with the off-the-shelf software projects where it does not align with the business operations.

Reason # 3

Unrealistic Expectations

When the expectations are way too high than the scope of work, it causes mishaps and disappointments. Setting the expectations right at the beginning and pepper logistics planning can help with proper planning and a better approach at defining the scope of work.

Reason # 4

Wrong Estimation of Timeline

Many times poor estimation practices lead to targets that are either difficult or impossible to meet. There can be two reasons for estimation being a cause of project failure:
a. Estimating too early
b. Estimating without being realistic.

Reason # 5

Lack of Involvement and Poor Planning

Certain software projects need involvement of the management or expert planning and supervision. However, it has been an observation that the initial involvement is very high but gradually decreases during the supervision stage and that’s where the gaps are maximum.

Reason # 6

Recurring Modifications and Changes

When there is a lot of to and fro, repeated activities and minor changes happening during the execution of the software, there is a lot of delay. This results in loss of motivation to complete the project and the outcome also gets affected.

Reason # 7

Misallocation of Resources

Misallocation of resources on a single project can happen in two ways: a. Either there are too many people working on a single project which result in conflicts and confusion or b. There are insufficient resources on a project which result in delay and inaccuracy.

Reason # 8

Lack of Periodic Checks and Testing

A software project needs timely checks and testing at every stage of its development. When periodic checks are missed out or there is negligence in testing, then the outcome varys than the expected results.

Reason # 9

Lack of Collaboration and Transparency

Collaboration is a very important skill which can either make or break a deal. Whether it is within the internal teams working on a project or it is with the client, if there is no sync or transparency, it can massively affect the outcome.

Reason # 10

Budget Constraints

This is the most common drawback when it comes to any type of project. Everyone wants the best service and delivery in the most optimum budget. However, the constraints somehow affect the quality and the no. of hours the team puts in.



Customisation is the key

When you choose custom over off-the-shelf, you always have a win-win scenario and the outcome is as per your requirements without any alterations.


Wireframes and Plan of Execution

The usage of best quality and credible technology can be a great way to assure success as it will not cause any technical fault during the testing phase. However, the tools and tech stack to be used should be discussed prior as best things don't come cheap.


Unrealistic Expectations

When the expectations are way too high than the scope of work, it causes mishaps and disappointments. Setting the expectations right at the beginning and pepper logistics planning can help with proper planning and a better approach at defining the scope of work.


Flexible to Change and Modifications

There should be a flexible attitude towards implementing changes and feedback from the management or the client. This will not only help in better collaboration, but also help in the project delivery on time.


Realistic Budget and Timeframe

As the initial phase of each project is planning and determining estimation, it should be done keeping in mind the end result. A realistic budget and timeframe should be stated where even the client is content and the working teams are not under pressure.


Hiring Experienced Domain Experts

As domain experts have already worked on delivering various software, they have already faced those challenges and have derived the solutions to tackle them. They even have an experienced team, estimations and industry knowledge to execute larger projects.


Every project has its ups and downs, however if focus is laid on proper planning, accurate estimations and a rock solid collaboration process – the execution becomes much smoother.


Your software project needs a dedicated team. If you are looking for a hassle-free, stress-free software development experience, iTechnosol is the place to be!