Nearly every one or the other business or a professional IT company is choosing to outsource over other options. It is because outsourcing has proved to be the most popular employee source in any area. 

When it comes to the varieties of employment, the leading positions top the list. Moreover, nearly 70% of respondents state that outsourcing is an excellent medium for companies that are on the lookout for the best talents. 

The majority of the companies look for software development outsourcing as it accelerates the digital transformation, cloud technologies, and innovative solutions as it automates the workflow, and increases the return on investment. 

But it also involves huge risks. Moreover, the software testing also has to be done before making it go live. Let us figure out some of the major risks that software development faces and popular ways to avoid those risks in the post mentioned below. 

Risks Related to Software Development 

Software development refers to the series of processes that are used to plan and ultimately create software. But the success of the software development can be greatly affected by the risks which keep on hovering around your software.  

The risks can occur both internally and externally. Consequently, it is super essential to know and prepare for these risks to make your software development a huge success. Let’s have an insight into some of the risks that software development faces. 

Code Issues 

The foremost risk involved in software development is code issues. Due to rushed work routines, one or the other factors, projects containing poor quality code can fail massively. 

Some of the code issues software development faces include bugs, logical errors, and many more things. But thankfully you can avoid these risks by taking the following steps: 

  • Doing the regular testing 
  • Fixing bugs and other errors 
  • Defining code standards food the software developers
  • Using the best code practices 

Hidden Costs 

The biggest mistake that companies make is when they underestimate the management costs, numerous other expenses of relocation, set up, and other issues. All this leads to the poor quality of the software development. 

Moreover, setting the expectation of getting enough return on investment in the first year itself but even the professionals won’t think it is possible and realistic. 

Low Productivity 

Sometimes, your software development can also be hampered by productivity issues. The teams entrusted with the software development struggle with productivity due to delays, employee burnout, and numerous other factors. 

But no worries as you can easily boost your team’s productivity by taking the right measures. The foremost thing to do is to create a plan as this will lower stress and avoid burnout. You should also communicate with your team regarding the project’s details and the problems it is facing. 

Looking out for a great team leader and providing the right guidance and motivation wherever required is also an advantage. Setting good goals can also go a long way in improving your productivity. It helps your employees become motivated and stay on the right track. But while working on the goals, make sure the goals are specific, measurable, realistic, attainable, and timely. 

Poor Management 

Without any doubt, the huge risk to software development is Poor management. The poor management brings poor results and takes the company towards losses. Consequently, businesses need to opt for Good management who spot the risks on time and deal with them. 

The company can improve its management by following ways such as figuring out the potential risks, calculating their possibilities, creating risk mitigation plans, and finally monitoring those risks. 

Obsolete Technologies 

Businesses resorting to outdated technology can also pose a serious risk to software development. If you want to stay in the competition and be ahead of the competitors, then staying abreast with the latest trends in the IT industry is crucial. 

Investing in the latest technologies will aid in much better software development and bring greater returns on investment. 

User Response 

Whether your software will be a huge success or a failure in the market will depend upon the response it gets from the users. It is because the users will purchase and adopt the software. That’s why paying heed to the user response is extremely important. 

But the businesses can lower this risk by testing the software in advance through beta testing and user testing. In addition to this, sending surveys to the users and conducting focus groups to gather information about how many users are buying the software and other things. 

Inconsistency of Team Members 

Another significant risk that software development often faces is when the team members leave in between the project, especially the key team members. It makes it hard for the company to make up for the skills, expertise, and project background they had. 

You can reduce this risk by documenting the details of your project, creating training for the new team members, and asking the current team members to prepare the transition plans for the next members. 

Unrealistic Deadlines 

No doubt that software development usually comes with tight deadlines. But having tight deadlines does not mean setting unrealistic deadlines. Because doing so, you won’t be able to meet those deadlines and this in turn will bring in dissatisfaction. 

Consequently, come up with a detailed project plan and set realistic deadlines for your software development project. This will ensure to complete the project within the designated time frame. 

External Risks 

In addition to the internal risks, businesses should consider the external risks as well. By external risks, we mean the factors which cannot be predicted such as laws, economic shifts, natural disasters, and many more to go. 

Usually, it is challenging to avoid the external risks but obtaining insurance in prior can lessen these risks to some extent. Also, one should stay informed about the software development laws and the latest events happening so that you can respond accordingly. 


Budget proves to be the major hindrance and risk in software development most of the time. As the project’s scope changes, the budget also has to change. But what matters is monitoring the projects so that they don’t exceed the budget. 

Usually, the problems arise when the budget has been calculated incorrectly, no funds have been reserved and there is no planning concerning the expansion of the project. Consequently, try not to raise the costs and adjust your project plan and budget according to the changes. 

Tips to Improve Software Development 

No matter how major the risk is, businesses can always overcome the risk by opting for the right approach. Here are some of the most effective and useful ways to improve software development. 

Use latest Technologies 

Companies and businesses should let go of outdated technologies and make themselves familiar with the latest and most advanced technologies assisting in software development. 

Besides using the latest technologies, also ensure that all the developers and team members make use of the same technology to develop your project. 

Enhance the learning 

Another best way to reduce the risks in software development is by enhancing and organizing learning. Numerous companies lack when it comes to providing learning to the team members. They simply pass on this responsibility to the outsourcing vendors. 

But the thing is that by incorporating organizational learning, the companies can easily keep all the employees updated on the latest happenings in the industry. The training sessions are crucial and add to the team spirit of the developers. Moreover, the improvement it brings is simply amazing. 

Improve Management 

The next way forward for avoiding the risks concerning software development is to improve management. Establishing a reliable connection between your team and the hired IT developers is vital the moment your company decides to employ the onboarding process. 

Moreover, divide the tasks and duties of every team member, decide the deadlines and make room for the report system to track the performance. 

Get to know Employees’ Experience 

Whether the employees you have chosen for the software development have the right set of skills in them or not is also a major question. For instance, get to know their skills, whether it matches your project’s requirements or not, and other ones. 

For knowing this, the best way is to ask the employee to do one trial task within a decided time as this will keep you informed regarding their skills. Once you are done with this, then you can ask your employees to begin with the project and in the meanwhile, keep an eye on the work done by them. 

Costs Estimation 

The next big thing which can assist you in avoiding the software development risks is the overall estimation of the cost. Usually, the companies don’t pay any attention to these but this is the one thing that can help the company lower their risks. 

Doing so will ensure superior quality services. In addition to this, also include the management, hardware, inventory coverage, logistics, coordination, and software updating cost in the estimation. 


No doubt there are plenty of risks surrounding software development but by employing the ways mentioned above and implementing them in practice, companies can mitigate their software development risks to a significant extent. Go through the cucumber framework as this will also help you in getting your software right. Book your one-on-one consultation with the experts at Skilled Pragati regarding the same.