Companies involved in the software industry are faced with unique challenges due to their fast-paced industry environment. Some of these challenges include:
Developmental Time: You have a product idea along with a plan on what stages need to be included in a timeline. However, you don't always have access to the necessary people and resources needed to develop these products. These can delay or change your timeline completely, which can result in doubt from investors. In fact, less than a third of projects were completed accordingly to timeline and budget over the past year.
Financial Resources: If you are in the early stage of development, you are typically not profitable, which can make it difficult to provide the necessary investments to reach profitably under your current business plan. If you are following your plan and run out of resources, it can result in the inability to maintain or gain new investors. Budgets are also hard to predict and stay true to. On average, 66% of projects over $15 million run over budget, with the end value being 17% less than expected.
Staffing: With an increase in demand for skilled developers, the challenges in finding candidates with superior attributes becomes difficult. Often times, companies focus too heavily on a candidate's technological knowledge and not their ability to solve problems quickly and creatively. The interview process should be extensive, including creative projects such as programming or algorithm testing challenge.
Competition: With new software being developed constantly, competition in this industry is extremely threatening. Another company could find available software and applications that allow their developmental testing to be completed in a much shorter period of time. Then there are the large name companies that dominate the industry, such as Microsoft, Oracle and International Business Machines (IBM). For these companies, at least $29 billion of their revenue is derived from software.
Although this industry is ever-changing, here are some 2016 predictions based on these factors:
• Increase in automated testing;
• Proof in uniqueness of code writing;
• Growth in ability to deliver quick, precise monitoring;
• Testing more mobile apps;
• Increase in awareness for security needs; and
• Demand for talented developers / tester.
Awareness of your financial standing, competition, and resources available, is vital in this industry. If you don't learn to adapt to the ever-changing technology innovations, you will simply be left behind. By the time you realize you need change, it will take more than a slight change in your business plan.