Why most of Software Companies fail


According to statistics, only 32% of IT projects succeed, while the rest fail. Even if you have a great idea, you are more likely to end up as one of the unfortunate two-thirds of those who fail than those who succeed.

One of the most critical steps that any software developer can take to ensure that their project is on track is to establish a quality assurance program. This is a powerful practice that helps build their product’s future success. Before going into more detail about this process, we’d like to talk about some of the signs that your project is not moving in the right direction.

What is Quality Assurance and the difference from Software Testing

The concept of quality assurance is a framework that describes how software should be developed and tested. It involves ensuring that the quality of the software is maintained throughout the entire development cycle. This is done through operations management and involves providing the necessary confidence that the software will work properly.

A quality control process is referred to as a process that ensures that the software that is developed meets the requirements of the standards set by the government.

Software testing, on the other hand, is a type of testing that focuses on identifying potential issues with the software.

The Research Findings

According to a new study, almost 70% of technology projects are considered "improbable." This is because they don't have the necessary requirements analysis. This means that they are doomed from the beginning. Key findings:

The study found that companies with poor business analysis capabilities are more prone to having multiple project failures than to achieving a successful outcome. Out of the 38% of organizations that have a poor business analysis capability, almost half of them have runaways or projects that are over 180 percent over budget and require over 160 percent of their budget to deliver.

It costs companies up to 60 percent of their project budget to use poor requirements practices.

The average company's development budget for software and professional services will be over 41 percent affected by poor requirements. This is because many of these projects are carried out using an average analyst's approach.

The study also found that most projects don't have the necessary skills to consistently deliver on time and budget. This is because the level of competency required for these projects is higher than that of the companies that employ them.