Return on Investment in Software Development

Hi I thought I would write a series of articles on a topic that I believe is becoming absolutely critical in the software development industry, that being the magical and mysterious ROI (return on investment) in software development.

As the owner of a programming company here in South Africa, I decided at the outset of the company that a rule of thumb for accepting any software development project would be that I would need to figure out how to measure the ROI in that particular project. Now you may or may not be surprised to know that in most instances my clients don’t actually think of this measure before taking on the project, they know that they have a business problem or business need that needs to be solved with technology and are willing to pay an amount of money for that. Experience over the years however has shown me that the best way to retain that client in the long term and or to make more business from that client is to prove a ROI in some way on that software development project.

I find this measure to be critical because for my companies purposes it shows exactly how successful a project is to my client in monetary terms. The bigger my impact through the software I develop, the more successful I have been at satisfying that clients need, the easier it is for me to go back to that client and offer further services. Contrary to popular belief, I don’t believe that a project coming in on time or under cost is a great measure of the success of that project at all, this is typically what IT companies do. If I really want to do a great job for my client then I always intentionally build a monitoring tool into the software I develop for them and that tool must track the ROI for the client in some way and present a report to the client whenever they want to see what this piece of software really is worth to them, be it through savings, additional income, time savings, it doesn’t matter so long as you track the value.
So how do you go about figuring out the ROI on software development project?

This is the difficult portion because it requires listening to the clients need carefully and scoping there need correctly, once you have done this, it should become fairly obvious what the client is trying to solve by having the software developed, this should then be a clear indication of the measure to be used on ROI. For example,a client of mine wished to have a system developed that automated the process of allowing shareholders in various properties to swap there owned weeks with each other. Before the client came to me they did this process manually, ie called there shareholders to find out if they were willing to exchange a week with a fellow shareholder that already gave an indication that they wanted to swap there week etc. This took a lot of time and for the administration fee that the client asked to do this, I suspect the profit was very little. Once we had developed the system and allowed the shareholders to interact with each other through the website instead of the web system, the ROI was very clear, why?

-We tracked each exchange in the system, each exchange has a monetary value associated to it.

-The clients telephone bill dropped significantly

-More swaps occur because of the ease at which shareholders can swap weeks, instead of having to go through a process of calling the company then waiting etc, this increase in sales is measurable

-Because the client offered the service electronically he could increase his administration fee.

All this information the client could get through there system thereby ensuring that he could very clearly see what his ROI was.
Conclusion

I believe without a doubt that if you truly want to complete a software development project successfully for a client, then you need to build a ROI tool into the software. Convince the client to do this, if you cant do that then build it free of charge, but make sure that you get your client to look at these figures. In the long term this will have a positive effect on your business and keeps your software development projects honest in terms of creativity and keeping the clients needs in mind constantly.

Please offer your comments and views on this topic, I am very sure that peoples opinions and views on this vary quite considerably, I am very willing to listen to other opinions in this regard.

In my next article on ROI and software, I will be describing more specifically how you can measure ROI on certain types of projects, in this case it will be how to measure ROI precisely in SMS campaigns.

Software Development Projects And What Are The Best Methods

What are the best methods for software development projects

The crucial component is when choosing the correct software development life cycle process that is required to create the project, as all other processes are comprised from this process. The software development projects including the spiral method may often be used instead of the waterfall method.

This way any problem may be corrected early and ensuring the testing process has more chance of success. The artifact from the development process can then be analyzed.

The testing process is an imperative part of software development that needs to be planned prior to coding. The testing process is created during the application designing and coding phase.

The project management remains essential to the success of the project. The project manager is constantly aware of these expectations. Rapid Development RAD is one system.

There has also been a notable change to the software process recently, this has been the emergence of the terminology: agile. The agile software methods and the introduction of agility to the development team, determines a change to the well established processes.

Communicating is crucial to success. Including the developing software development plan combining strategy. The architecture and any design or coding requirements. It is of great importance for the development team to know exactly what needs to be created.

As the majority of the software development is a hectic process, termed code and fix, as the software sometimes is created without a correct plan or only short term emphasis. This can work with a small project but as the system grows it is very difficult to add new elements to the system. In addition to this bugs can become a big problem and can be difficult to fix.

The entire software development plan and processing of any system will require the main components of communication, management, planning, testing and implementation. These steps can create ease.

Once a system is developed, it would be beneficial to provide troubleshooting and support to ensure the end user can actually use the software and also any bugs within the system may actually be made known through this process and ensuring to correct architecture for the development.

It is also important to ensure the design is also acceptable as the application must be easy to use, easy to understand and simplicity will contribute greatly to the success of this project and all future projects as there is structure.

Software Development Company

We are living in twenty-first century and around us every things rapidly change. Generally we listen that now train, bus, car, post office, banking and attendance system etc working as computerize. Normally all people trust on the automated system because this work according predefine functions and give result accurate, never tired and more reliable.

The soul of Computerize system is software. The custom software development is not a simple work. When we look any computerize system this work quite soft and easily but behind this a big mind work which developing by software engineer.

The Software development is long process and this developing step by step. When software engineers developing software he/she thought every aspect of the software such as…

Planning of the project: when a client wants to software development by software development company then first step of the project will be planning in step studying What problems may occur when develop this project.

Study of feasibility: in this step check the project may feasible or not. Project cost cover by client or not along with check estimate time of the project and in this field ensured this project may develop or not.

Design of the system: system designing is the most critical step of the project development. In this field all step mentioned who software work such as where data store, where data come & go, how where data and information display etc step cover in this field.

Coding: coding works performed by programmer and written according system design.

Implementation: normally big software develops in a number of the small software (program). Every program working checks in this step.

Software integration: now all program integrating and development a software.

Software testing: In this phase Developed Software is tested to assure that it works according to the client’s requirement. For a bug free and efficient application this step is very important. A lot of time is devoted in this step to make a foolproof application. This step insures the good character of software.

Installation: in this step software hand to client and all cost of software development received by client. The software install client computer.

Maintenance: maintenance work is tedious work because who person written code of the software is not available all time and maintenance work performs another person normally he/she confuse. When maintainer read all code then he/she can remove errors.

Now we can understand that software development is not a simple work. When client want to development of web software or custom software he/she notice software Development Company’s services history. Which software Development Company has long experience in the field of Software development services may be gold for clients because this has long experience technology. The software should be complete within time, complete within estimate cost and fulfill all requirements of the clients.

Software Development in India is not only cheap but also delivers good quality software. Indian Software Engineers are intelligent, dedicated and work for perfect ness. In India numbers of companies provide Offshore Outsourcing Software Development Services. These companies also provide web design, complete ecommerce Solution Services, CAD services, SEO services and Cheap Logo Design in India.

India’s Software Development Company mostly located in Delhi & NCR, Bangalore, Mumbai, Hyderabad and other places. Mostly IT companies in India provide offshore outsourcing software development services.