If you’re a tech leader who has struggled with software development projects that fail to meet budgets and deadlines or see success after launch, outcome-based software development may be a helpful approach. Unlike feature-based development, which focuses on the technology used and what the software will do, outcome-based software development also takes into consideration factors such as user acceptance, adoption, successful implementation, and ultimately how the user’s behavior will change or what problem the software will solve as key factors in shaping software development.
Focusing on the why of a development project is a big step towards seeing success. However, a successful outcome-based software development project isn’t a guarantee. According to a Harvard Business Review study, the average IT project has a cost overrun of 27%. More concerning, 17% of the projects in the study were categorized as “black swans,” with average cost overruns of 200% and schedule overruns of 70%.
Gigster has developed processes to help us complete 95% of custom software development services on time, within budget, and with 60% lower risk than traditional IT projects. We’ve found guaranteeing success in software development begins with clear communication, well-defined goals, and a detailed roadmap. Project managers keep the project aligned with its objectives by setting realistic milestones and regularly monitoring progress.
Tech leaders and project managers, read on to learn our strategies to optimize timeframes, leverage elastic teams, and use AI-powered project management software to identify potential bottlenecks and roadblocks before they become an issue.
The discovery phase is one of the biggest differentiators for outcome-based software development. This phase is where the stakeholders and development team get aligned on the “why” of the project. What outcome are they looking to achieve?
The discovery phase of a development project is also the time to thoroughly research the desired outcome and solution to determine if the project is viable and likely to see success - either in the market or for internal adoption. Conducting market research, collecting insights from stakeholders, and identifying potential risks that could cause delays or bottlenecks ahead of the discovery phase can provide invaluable inputs and help provide development teams informed points of view.
This understanding helps outline the scope of the project and all necessary features to meet your objectives before the project starts. Failing to fully define and outline desired outcomes before beginning a project can lead to confusion, scope creep, and increased timelines.
The main causes for a software development project to be behind schedule are the addition of features after the initial project roadmap and delays that are not properly anticipated, communicated, or adjusted for. Outcome-based software development can help avoid feature creep by keeping the focus solely on the outcome you want to achieve. Here are a few other key strategies to optimize timeframes for successful software development:
Contingent workers allow you to hire developers, designers, and data engineers on an elastic or fractional basis. This provides greater project flexibility, cost-efficiency, and access to specialized talent. This is why 41% of companies expect to increase their use of contingent workers.
Using contingent hiring provides greater flexibility to bring specific roles and specialties to the project as they are needed. According to 90% of corporations, flexibility is the key benefit of hiring contingent workers. This is essentially beneficial if new teams are needed for unexpected features or setbacks. Waiting to onboard a new team or hire an individual for a specific expertise could set the project back months.
With a contingent workforce, you don't need to hire every developer and designer for the entire project lifecycle and can hire them only when their stage of the project is coming up. This helps maintain efficient development cycles and keep their design costs lower.
Managing an agile development cycle and an elastic workforce can seem like adding more complexity to the development process. AI-powered project management tools can help automate some PM tasks, provide monitoring and predictive analytics for greater insight into progress and potential issues, and help optimize development resources. This is especially true when working with elastic workers. AI in contingent workforce management is growing by 25% annually. Gigster uses AI-powered project management for:
Outcome-based software development is a great starting point for focusing on the outcome that will see the most success and avoiding any additional features or solutions that will only muddle or delay your project. Beyond this, there are several strategies you can use to guarantee successful outcomes and avoid cost and schedule overruns. Clearly outlining your project’s objectives and scope, using agile methodologies, leveraging contingent workers, and AI-powered project management all work together to ensure successful outcome-based software development.
Gigster has used these strategies for over a decade to deliver successful outcomes for our clients. We provide fully managed custom software development services with expert talent and little ramp-up time. If you’re looking to simplify and streamline your software development project, contact us today.
