Custom software development can have a profound impact on businesses, making it a substantial investment and gaining a competitive edge among the unlimited software products out there. Efficient planning and budgeting strive to assist businesses in controlling costs and achieve optimal results. In order to successfully plan and budget for your custom software development project, there are a few factors that should be take into consideration, including:
Project Cost Limitation
Spending just enough to get the product that the business needs, while staying balanced with the company’s other costs. Be wise to set a maximum budget for the development project in order to prevent runaway and excessive expenses. With this number in mind, prioritize certain features and allocate the budget accordingly.
Keep reviewing the business’s profit and loss statements, revenue, and other recurring expenses regularly when setting a cost limit for the project, to stay on top of finance and to contribute funding properly.
Capturing Project Requirements
Accurate project budgeting requires collaboration with the product team to compile a comprehensive list of custom software solution requirements. This essential step aims to guarantee the project’s adherence to schedule, budget, and expected outcomes. Furthermore, documenting the requirements helps set quality expectations, sustainability criteria, and other success measures for the product.
Requirements can be classified into two types: Functional (user tasks) and non-functional (quality aspects). Functional requirements outline the tasks and actions users should be able to perform within the application, for instance actions like “create an account,” “add items to the shopping cart,” and “send a message.” On the other hand, non-functional requirements focus on the product’s quality aspects, such as performance, security, and usability.
Performing a Feasibility Study for the Project
A feasibility study evaluates a project’s practicality and potential success. It assesses the technical and financial viability of the proposed software solution, ensuring alignment with organizational objectives. This study is conducted after defining the project scope and gathering necessary requirements, which are:
Assessing Technical Feasibility
Thoroughly evaluate the technical aspects of the project, including required technologies, infrastructure, software development tools, expertise; and whether the project can be realistically implemented considering the available resources as well as current technical constraints.
Analyzing Economic Feasibility
Examine the project’s financial scenario by assessing the estimated costs involved in development, implementation, maintenance, and support of the software solution. These costs should be compared to the anticipated benefits, such as increased efficiency, cost savings, or revenue generation, to determine the project’s financial feasibility.
Evaluating Operational Capability
Determine whether the proposed software solution can seamlessly fit within the existing organizational setup. Consider factors like compatibility with current systems, integration requirements, training needs, and potential impacts on existing business processes.
Considering Legal and Regulatory Factors
Classify any legal or regulatory requirements that may directly or indirectly influence the project and comply with relevant laws, regulations, and industry standards governing data protection, security, accessibility, and other factors.
Assessing Schedule Feasibility
Evaluate the project’s timeline and schedule, considering resource availability, potential risks, and dependencies that could impact the project’s timely completion. Determine if the proposed timeline is achievable and realistic.
Identifying Risks and Mitigation Strategies
Identify potential risks and challenges associated with the project, assessing their impact on prospects and success. Developing effective mitigation strategies and contingency plans to address these risks proactively. In highly regulated environments, creating a traceable matrix at this stage to help track risk mitigation efforts and provides auditors with proof of compliance.
Presenting Findings and Recommendations
A thorough detailed report summarizing the feasibility study’s findings should be presented to stakeholders and decision-makers. This report communicates the project’s feasibility while addressing any concerns or limitations, enables software development teams to make informed decisions, minimizes risks, aligns with organizational goals, and increases the likelihood of delivering a successful software solution.
Creating a project roadmap
Developing an extensive project roadmap does not stop merely at timeline, it serves as an easily understandable overview of the entire project for all stakeholders and team members involved. To create an effective project roadmap, typically by using a Gantt chart, a preferred tool for most project managers, would likely go through the following key steps:
- Break Down The Project Scope: Begin by defining the project scope, which comprises all the tasks required to complete the project. Utilize a work breakdown structure to make sure every task is identified accurately.
- Map Out The Project Tasks: Once all project tasks are identified, use a Gantt chart to create a project timeline. The project manager can employ specialized Gantt chart tools or even Excel for this purpose.
- Link Task Dependencies: After establishing the project timeline with tasks and due dates, next is determine task dependencies, i.e., the order in which tasks need to be executed.
- Identify Deliverables: List the expected outcomes or deliverables for each task. Keeping track of deliverables helps the team know when dependent tasks are ready to be initiated.
- Set Project Milestones: Project milestones are important events within a project that indicate progress towards the ultimate goal. They encompass dates for project phases, stakeholder approvals, key deliverables, meetings, external reviews, and budget checks, serving as fundamental markers of achievement.
Embracing Iterative Development
Adopting iterative development as a standard software development approach can significantly expedite product creation while enhancing quality and cost-effectiveness.
Recognize that software seldomly reaches a state of readiness for immediate release after just one iteration. Plan for multiple iterations to refine the product and truly impress end users and customers.
However, considering the budget implications of iterative development is top priority. The project timeline may get extended, and additional development labor might be required. Be prepared for potential extra expenses or costs for these unexpected delays.
Account for Maintenance Fees
Upon product release, it’s crucial to maintain the ongoing performance through regular updates and maintenance. Many 3rd party development companies offer maintenance services on a monthly or annual basis, or appoint an internal team to handle this responsibility. Whichever route you choose, remember to factor in these maintenance fees when planning the development budget.
Utilize Software Testing Service
Embarking on custom software development entails a considerable investment, promising great rewards but also bearing substantial risks. To avert potential surprises and smooth journeys, meticulous upfront planning and budgeting are the unskippable steps of the SDLC process.
Enlisting the assistance of software quality assurance companies can prove invaluable in this regard. These experienced consultants have navigated the budgeting process numerous times and are adept at foreseeing overlooked costs and hidden pitfalls, offering valuable insights for a successful project.
