Why Software Projects Fail (and How to Make Yours a Success)

It takes much more than high-quality, and functional code for software projects to be successful. Building software involves multiple steps, and sometimes, despite all the effort, things go wrong. This can happen due to missed deadlines, not well-defined requirements, or unhappy users—there are plenty of ways a project can go off course. 

When you know how a project can go wrong, you will be able to identify warning signs before that happens. Or it simply helps you be prepared and avoid those possible issues. 

As a software development company, we have worked on many different IT projects, and this experience helped us understand what works, what doesn't, and, most importantly, how to avoid those common pitfalls that cause software project failure. Let’s get started!

Why Software Projects Fail

Building your own software is no small task, but if it’s done right, it will benefit your company more than buying off-the-shelf solutions. However, sometimes, things go south. Over the years we have seen a few common reasons why software projects fail. Let’s take a look at some of the most important ones: 

Unclear Requirements

This is one of the biggest pitfalls when it comes to software projects. When requirements aren’t clearly defined from the very beginning, things can easily shift during development. This can also lead to wasted hours or even days on developing features that aren’t needed, causing delays and uncertainty. 

We’ve seen cases where the client wasn’t 100% sure what they wanted from the start. By the way, this is totally ok, as they can work together with developers or consultants who can advise them on this aspect. But, throughout the project, which was almost halfway done, the client changed their mind about multiple features and requested additional ones. This led to delays and extra work for developers, making them adjust along the way. 

Poor Communication

Successful collaboration and projects all have something in common: clear and ongoing communication. If the development team, stakeholders, and clients aren’t communicating regularly, that can easily lead to misunderstandings. Staying on the same page is very important, especially as the project evolves. 

This happens in cases where important project details aren’t discussed or were either misunderstood or missed entirely. It can be as simple as not being clear on the client’s expectations for a feature, which later results in the development team building something that is not quite right.

Lack of Proper Testing

Testing is essential in software development. Not running regular tests can lead to issues and bugs piling up, making your software look unreliable. That’s why it’s important to catch bugs early on and fix them otherwise they might lead to costly and time-consuming fixes.

Imagine working on a project where the development team doesn’t do regular and thorough testing. There’s a high chance for the project timeline to be set back due to fixing major bugs after the app is launched. 

Unrealistic Deadlines

Underestimating how long different tasks might take to finish is another common reason for software project failure. This can happen when anyone outside of the development team makes the decisions on the project’s deadlines. 

The right way to do it is to involve the development team in these discussions to be able to set a realistic deadline for the project. It takes time to build reliable and high-quality software. This is why it’s important to set a deadline together with your development team. A tight deadline might result in rushed decisions and features that might now work very well. 

Changing Requirements During Development 

We are all about flexibility at MoldoWEB, and while it’s important for us to handle projects this way, constant changes during development make it hard to stay on track. Ideas evolve, and that’s normal, but changing and adding new requirements too often can derail the entire project. 

Every time the client decides to change something or add a new feature, it takes rewriting code, maybe even rethinking the design. This will slow things down and add to the workload of the development team, resulting in delays. 

Lack of Proper Project Management

With a good project manager, everything about the development process will be much smoother and organized. Their role is to make sure deadlines are met, tasks are on track, and everybody knows their main priorities. Things can easily get messy and chaotic when there’s no strong project management in place. This can mean missed tasks and timelines. 

Without a dedicated project manager, it’s much harder to keep track of tasks and progress in general. Not only that but without prioritization in tasks, the development team can spend more time on building features that are not super urgent while spending less time on core ones. 

Overly Complex Solutions

There are new technologies and fresh solutions emerging daily, and it might be tempting for clients to pick the newest and coolest ones for their projects, even though they might not be the best fit. Sometimes, they just overcomplicate the project, and result in unnecessary problems and delays.

Sometimes, a simpler solution works better, and there are no delays and bugs due to a complex tech stack.

Keeping Your Software Project on Track

Now that we’ve listed the main reasons why software projects fail, let’s focus on what we can do to prevent it, and keep the projects on track. Asking the right questions when planning the software is really important. Honestly, there is no magic formula, but following these strategies can make a difference and contribute to better risk management in IT projects. 

1. Start with clear, realistic requirements

Getting started with coding should wait until you have set clear requirements for your project. So, make sure to take care of that first; sit down with your team and the client, decide on the core features, and set priorities. Here, it’s really important to focus only on the main features without adding extras. Those can wait until after the first version is released. 

Writing out user stories or a basic roadmap is a simple and efficient way to do this. It makes sure everyone is on the same page and helps avoid misunderstandings during development. 

2. Communicate (More than you think you need to)

When you are in constant communication with your team, you can make sure everyone knows their current priorities within the project. Or, if those change over time, let your team members know ASAP. And, if something is not clear, ask. 

Documentation is also really helpful in this case. It doesn’t have to be a 100-page doc, just enough information that no one is left guessing. A shared Notion board or Jira tickets can do the trick. 

3. Test early, test often

Testing early, instead of just at the end, will make it easier (and cheaper) to catch any issues or bugs in your software, and it can save you from last-minute chaos. 

Automated tests are definitely great, but even basic manual testing after each sprint will help a lot. It’s all about making sure everything works as it should, every button does what it’s supposed to, and there are no glitches in your software. 

4. Set Realistic Timelines

Underestimating how long things take is a classic mistake many companies make when building software. Even though the features seem to be simple to build, things rarely go as planned due to unexpected bugs or last-minute changes. Whatever the reason, make sure to allocate some buffer time for these situations when setting deadlines for the project. For example, if a task seems like it will take two weeks to finish, plan for three, just in case. It will make development less stressful. 

5. Limit scope creep

It can be quite tempting to add new features to your app that is in development, but sticking to the initial plan is a better idea. Sure, new ideas can come up mid-project (and they will), but ask yourself how essential they are before changing anything. If they’re not a priority, they can wait until a later phase in development. 

The main idea here is to stick to the core plan and collect new feature requests in a backlog. If they are truly essential, they can be considered after the first version is launched. 

6. Use the right tools

A good tech stack that supports your projects makes a huge difference. Version control (Git), issue and task tracking (Jira, Trello), and collaboration tools (Slack, Notion) help keep your project organized. 

But don’t overcomplicate it. If you have a system as simple as a to-do list that works well for your team, stick with that. The main goal is to stay productive, and not spend a lot of time with management tools. 

7. Have a dedicated project manager

Not every project has an official project manager, but there should be someone who is responsible for keeping things on track. This mostly includes checking deadlines, organizing tasks, and managing priorities. 

For smaller teams, it might make more sense for a lead developer to take over the project manager's responsibilities. Just make sure your team has someone to keep the project organized and on track.

How Agile Helps You Succeed

If you have worked on a software project before, you probably know that things rarely go exactly as planned due to factors like changes in requirements, bugs, or delays. These things can happen with any project, and it’s good to have a system that allows room for flexibility and adaptation. Agile methodology keeps things flexible so teams can adapt as they go. 

One of the biggest advantages of Agile is that you build and fix things faster. Agile is more about dividing work into smaller sprints instead of planning out the whole project and executing in one go. The development team is constantly improving the product, and testing as they go. This helps them avoid building something that ends up not being functional, or worse, not matching the client’s requirements. The Agile development process is based on improving the product based on feedback. 

What’s also great about Agile, is that it keeps everyone on the same page. This can look like daily stand-ups, sprint planning, and regular check-ins. Team members always know what tasks to prioritize, and, clients that are involved in the development process don’t get a last-minute shock when the final product looks different from what they imagined. It’s all about being efficient, that’s why instead of lengthy emails back and forth, Agile teams focus on short communication focused on updates and how to move forward. 

When it comes to managing scope creep, Agile is really helpful. Instead of adding all the new ideas mid-project, they are added into a backlog and discussed between team members which one should be prioritized. This way there won’t be delays, and helps ship a working product sooner. 

In an Agile work environment, the focus is more on getting real results instead of following strict rules. Teams can work smarter in a more flexible way to build a product that users will actually want. Compared to the old-school way of building software, Agile gives you a much better chance for success. 

Conclusion

Software projects can fail for all kinds of reasons: poor planning, bad communication and collaboration, or never-ending scope creep. But that doesn’t mean yours has to. It’s good to be informed about what can go wrong because you can take the necessary precautions to keep your project on track. 

Agile helps a lot with this, but to be honest, keeping the basics right is super important as well. This means setting clear priorities, regular check-ins with your team, and being adaptive. Oh, and don’t keep delaying the product launch, even if your product isn’t 100% perfect. A working product, even if it’s not perfect, is still better than one that is stuck in development forever. 

Remember, no project goes smoothly from start to finish. But if you’re ready to adapt and have a “can do” attitude, you’ll have a bigger chance for success.