The Risks of Custom Software Quotes
When considering a software development project, it is important to understand the risks involved with embarking on that journey. One inherent risk that people often overlook is the risk associated with obtaining a quote too early in the planning process. Understandably, people are eager to find out the ticket price to build their software, however this comes with a host of other complications. In this article we will explore two common issues.
The Evolving Landscape of Software Development
In 2024, AI and automation have become integral to the software development process. These technologies enhance early scoping and quoting by analyzing historical data, providing more accurate estimates, and managing risks effectively. Additionally, rapid prototyping and the MVP (Minimum Viable Product) approach are increasingly used to minimize risk by allowing a working model of the software to be built early in the process. Incorporating these trends into the planning process can significantly improve the accuracy of quotes and project timelines.
1. Lack of information
When obtaining a quote for software development, the more information given to the developer, the more accurate the quote can be due to known work needed for successful project delivery. When people request a quote too early, this puts developers in an awkward position with a large number of unknowns in what is actually required for this project. This in turn can leave way for an unpleasant development experience.
A recent example of a project impacted by a lack of clear information is the NHS Track and Trace app, launched in 2020. The project faced numerous setbacks, including changes in requirements, technical difficulties, and privacy concerns. Initially, the app was developed using a centralized model, but due to compatibility issues with Apple and Google’s frameworks, it had to be reworked into a decentralized model. This led to significant delays and confusion, as well as frequent changes to the app’s functionality. Issues around data privacy and transparency further complicated the project. These challenges, stemming largely from incomplete information and shifting requirements, highlight the importance of thorough planning and scoping in software development.
a. Cone of uncertainty
The cone of uncertainty is shown below. This is a visual representation of risk and exemplifies the importance of knowing as many requirements of a development project before obtaining a quote. Moving from left to right you can see the movement away from a place of high certainty and lower risk into a place of less certainty and higher risk. It accounts for the lack of certainty in the future. This is why it is important to know as much as possible before development, and why we must complete a scoping process.
b. Scope
The scope is our process of beginning work on your project. Once the scope is known, so too is the likely time and cost to complete the desired functions. In this phase we explore the problem and uncover a solution that your software is providing its users. We move through 4 sequences (discovery, inspiration, ideation and realisation). The process typically is anywhere from 2-4 weeks depending on requirements.
Under/Over Quoting
Another risk associated with asking for a quote without embarking on a scoping process is that the developer will be at a higher level of risk due to uncertainty of work required before entering scope. This in turn causes both under/over quoting on time and money required for a successful project delivery and will almost always end in disappointment. Projects started without going through a scoping phase can cause disappointment through either the software being of a subpar standard, or from the developer holding your software ransom whilst you pay the extra funds needed to complete the project. On this point, always triple check who owns the IP. If you're paying for development services, our stance is that the IP should reside with you as the customer.
We mitigate these risks through our proprietary process, which is an advanced version of Agile methodology. Incorporating practices from the Scaled Agile Framework (SAFe) and DevOps, our approach allows for continuous improvement, rapid delivery, and flexibility throughout the project lifecycle.
Through the Way of Working there are three options for embarking on a project.
- Fixed time, variable scope
This is our preferred option, as it offers the highest level of certainty in pricing whilst enabling flexibility for new or unforeseen scope ideas.
- Fixed Scope, variable time
This option ensures all scope requirements are delivered and allows for flexibility in the amount of time for delivery.
- Fixed time, fixed scope
This is the least recommended and riskiest option as it has the potential to blow budgets out of proportion due to dev requirements and it limits the opportunity for scope feature adaptation thus limiting the project.
Leveraging Advanced Tools for Risk Mitigation
Modern project management tools, such as Jira, Azure DevOps, and AI-enhanced platforms, play a crucial role in managing scope and anticipating potential budget or timeline overruns. By integrating these tools into the development process, we can monitor progress more effectively and adapt to changes in scope or requirements with minimal disruption.
In software development, understanding and mitigating risks is essential for a successful project. Obtaining a quote too early in the process can lead to inaccurate estimates and a challenging development experience. By embracing modern practices like AI-enhanced scoping, rapid prototyping, and thorough scope definition, you can significantly reduce uncertainty and improve project outcomes. Our advanced Agile methodology, coupled with flexible project management options and powerful tools like Jira and Azure DevOps, enables us to navigate these complexities effectively. With the right approach and planning, you can build software that meets your needs while staying on time and within budget.
