{"id":1141,"date":"2021-09-06T18:33:00","date_gmt":"2021-09-06T15:33:00","guid":{"rendered":"https:\/\/arc.dev\/employer-blog\/?p=1141"},"modified":"2026-03-08T22:28:22","modified_gmt":"2026-03-08T14:28:22","slug":"avoid-failed-software-projects","status":"publish","type":"post","link":"https:\/\/arc.dev\/employer-blog\/avoid-failed-software-projects\/","title":{"rendered":"10 Ways to Avoid Failed Software Projects &#038; Why They Fail to Begin With"},"content":{"rendered":"\n<p>Whether you\u2019re <a href=\"https:\/\/arc.dev\/employer-blog\/journey-to-product-market-fit\/\">building an MVP<\/a> for your next startup or working on an internal CRM for your company, software projects are central to companies across all industries.<\/p>\n\n\n\n<p>It is troubling that&nbsp;<strong>31.1% of software projects will be canceled<\/strong>&nbsp;before they ever get completed, according to the most recent&nbsp;<a href=\"https:\/\/www.projectsmart.co.uk\/it-project-management\/the-curious-case-of-the-chaos-report-2009.php\" target=\"_blank\" rel=\"noreferrer noopener\">Standish report<\/a>. What\u2019s even worse is that&nbsp;<strong>52.7% of projects will cost 189% of their original estimates<\/strong>. <\/p>\n\n\n\n<p>For example, Levi\u2019s proposed a software migration that would cost somewhere around $5 million in 2003 \u2014 by 2008, the company reported a loss of almost $200 million due to this project failure. Due to unrealistic specs and constant changes in project direction, the final cost of this project came out 40X higher than the predicted cost. This phenomenon is so well-known that it was named the \u201cblack swan.\u201d<\/p>\n\n\n\n<p>In this post, we will explore common problems companies run into when launching a software project, and how you can ensure that your software projects succeed.<\/p>\n\n\n\n<p><em>Looking for top talent fast? See how <\/em><a href=\"https:\/\/arc.dev\/\">Arc<\/a><em> can help you:<\/em><\/p>\n\n\n\n<p><em>\u26a1\ufe0f Find developers, designers, marketers, and more<br>\u26a1\ufe0f Freelance or full-time remote + fully vetted<\/em><em><br>\u26a1\ufe0f Save up to 80% with global hires<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/arc.dev\"><strong>Hire top talent with Arc risk-free \u2192<\/strong><\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">What Makes Up a Failed Software Project?<\/h2>\n\n\n\n<p>Before we go on to discuss why projects fail, let\u2019s take a look at how different companies define successful projects:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>On-time, on-budget, and on-value (McKinsey &amp; Company)<\/li>\n\n\n\n<li>On-time, on-budget, and features\/functions as specified (<a href=\"https:\/\/www.projectsmart.co.uk\/it-project-management\/the-curious-case-of-the-chaos-report-2009.php\" target=\"_blank\" rel=\"noreferrer noopener\">The Standish Report<\/a>)<\/li>\n<\/ul>\n\n\n\n<p>We believe that project success is not black-and-white. According to \u201cMeasurement of Project Success,\u201d an article published in the International Journal of Project Management, there is a distinction between&nbsp;<strong>product\/project success<\/strong>&nbsp;and&nbsp;<strong>project management success<\/strong>. While product\/project success is largely determined by meeting its objectives, project management success is based on time, cost, and scope of criteria.<\/p>\n\n\n\n<p>Therefore, a project that is&nbsp;<em>not<\/em>&nbsp;on time, on budget, and on value may not be a \u201cfailed product\/project.\u201d Success should take both product\/project success and project management success into consideration.<\/p>\n\n\n\n<p>Instead of categorizing projects as either \u201csuccessful\u201d or \u201cunsuccessful\u201d, they can be categorized like so:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ideal projects:<\/strong>\u00a0The project is completed on time, on budget, on value, and with all features and functions as initially specified.<\/li>\n\n\n\n<li>Imperfect projects:\u00a0The project is completed and operational but over-time, over-budget, below predicted value, and\/or lacking features.<\/li>\n\n\n\n<li>Failed projects:\u00a0The project is canceled at some point during the development cycle.<\/li>\n<\/ul>\n\n\n\n<p>Now, let\u2019s look at some statistics regarding&nbsp;<strong>ideal projects<\/strong>,&nbsp;<strong>imperfect projects<\/strong>, and&nbsp;<strong>failed projects<\/strong>.<\/p>\n\n\n\n<p class=\"has-johannes-bg-alt-1-background-color has-background\"><strong>Read More<\/strong>: <a href=\"https:\/\/arc.dev\/employer-blog\/managing-distributed-development-team\/\">Managing a Distributed Software Development Team: 5 Lessons Learned<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-often-do-software-projects-fail\">How Often Do Software Projects Fail?<\/h2>\n\n\n\n<p>In the Standish Report, a total of 365 respondents were surveyed, with a total of 8,380 software projects represented \u2014 only 16.2% of them turned out as \u201cideal projects.&#8221; Their assessment was that&nbsp;<strong>31.1% of projects completely failed<\/strong>, while others experienced project management difficulties.<\/p>\n\n\n\n<p>According to the same&nbsp;McKinsey report, on average, software projects only produce 83% of their predicted value. Additionally, on average, software projects overran their predicted schedule by 33% and predicted cost by 66%. In other words, if a project was scheduled to be completed within 3 months, it would usually take 4 months. If the predicted cost of the project was $20,000, the actual cost would be $33,200.<\/p>\n\n\n\n<p>From these statistics, we can tell that project overrun is a common issue. Since project managers are the ones in charge of watching over the project timeline, they play a crucial role in delivering projects on time, on budget, on value, and with all features and functions intact. In addition to project management-related factors, there are several other factors that contribute to overall project\/product success.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"10-ways-to-avoid-project-failure\">10 Ways to Avoid Project Failure<\/h2>\n\n\n\n<p>Running and managing software projects is a collaborative effort. Whether you\u2019re working for a startup or an established company, working with&nbsp;full-time or freelance developers, there are often multiple stakeholders involved. The initial project idea is often finalized by a few key decision-makers. Then, either the PM and engineering team or freelancers will then take over to turn the idea into a product.<\/p>\n\n\n\n<p>In the ideal situation, all stakeholders will work together to deliver the project. More often than not, something will go wrong in the over-simplified process we just described. In this section, we will focus on how software projects can succeed when hiring freelance developers.<\/p>\n\n\n\n<p>Below are ten key factors for implementing a successful software project, some of which were inspired by&nbsp;a university thesis by Alexandre Walter, founder of rrrather:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">1. <strong>Clearly Define Success<\/strong><\/h3>\n\n\n\n<p>As previously mentioned, there are many ways to define project and product success. A successful project may not necessarily be a successful product, and not all projects generate new products. It is important to have specific ways of measuring the success and failure of a project.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">2. Have Clear Objectives and Requirements<\/h3>\n\n\n\n<p>When you\u2019re working on a project, you should have <a href=\"https:\/\/arc.dev\/employer-blog\/product-requirements-document\/\">detailed project specifications<\/a> and established project management methodologies (i.e. Agile, Waterfall, etc.). <\/p>\n\n\n\n<p>The project should be properly scoped and broken down. This way, a more realistic estimation can be made. We would recommend involving developers to help determine the project timeline.<\/p>\n\n\n\n<p class=\"has-johannes-bg-alt-1-background-color has-background\"><strong>Read More<\/strong>: <a href=\"https:\/\/arc.dev\/employer-blog\/freelance-software-development-workflow\/\">How to Create a Software Development Workflow for Freelance Hires<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">3. Involve End Users<\/h3>\n\n\n\n<p>Whether you\u2019re implementing software for internal users or external users, it is important to understand what the users need. Often, the development team is so far removed from the users and so concentrated on hitting their targets that they fail to communicate with their users. <\/p>\n\n\n\n<p>To ensure that end users\u2019 needs are prioritized, make sure to begin the project with a strong user requirements specification and ask for user feedback along the way. Encourage project team members to communicate directly with end-users.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">4. Hire Skilled Developers<\/h3>\n\n\n\n<p>A developer\u2019s programming skill directly influences the success of their projects. Skilled developers are often more experienced, can create higher quality software, and be more efficient.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">5. Use Effective Project Management Methodologies<\/h3>\n\n\n\n<p>Make sure you have reliable project managers, the <a href=\"https:\/\/arc.dev\/employer-blog\/project-management-tools\/\">best PM tools<\/a>, and are using the latest and greatest project management methodologies. For example, <a href=\"https:\/\/arc.dev\/developer-blog\/lean-vs-agile\/\">Agile methodologies<\/a> stress the importance of developing software in the iteration \u2014 each software version is tested and reviewed by stakeholders. <\/p>\n\n\n\n<p>Furthermore, make sure you always give yourself some leeway in terms of time. If a certain part of the project is set to be completed within 10 days, give developers 7 to 8 days to complete the task. As previously mentioned, if you\u2019re hiring freelance developers, make sure the platform you use offers project management support!<\/p>\n\n\n\n<p class=\"has-johannes-bg-alt-1-background-color has-background\"><strong>Read More<\/strong>: <a href=\"https:\/\/arc.dev\/employer-blog\/how-to-be-a-great-engineering-manager\/\">How to Be an Engineering Manager Your Company &amp; Team Respects<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">6. Know What You Want<\/h3>\n\n\n\n<p>Though not necessarily always the case, clients with more experience working with freelance platforms and freelance developers are more likely to have successful projects. If you\u2019re a non-technical founder, <a href=\"https:\/\/arc.dev\/employer-blog\/build-company-doesnt-need-you-laura-roeder\/\">here is some practical advice<\/a> regarding&nbsp;how to build your tech team.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">7. Break Your Project Up<\/h3>\n\n\n\n<p>Depending on what you\u2019re aiming to achieve, your projects\u2019 sizes will vary. It is important to break larger projects into smaller, more manageable chunks. When projects are broken down into smaller chunks, the communication is tighter and problems are more easily dealt with. Therefore, having shorter project milestones will help projects succeed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">8. Strengthen Your Relationship with Developers<\/h3>\n\n\n\n<p>Having a strong relationship with freelance developers is directly correlated with having more successful projects.&nbsp;Platforms&nbsp;that are more involved in the process of matching clients with freelancers and project management significantly increase the success rate.<\/p>\n\n\n\n<p class=\"has-johannes-bg-alt-1-background-color has-background\"><strong>Read More<\/strong>: <a href=\"https:\/\/arc.dev\/employer-blog\/how-to-integrate-freelance-developers\/\">How to Integrate Freelance Software Developers Into Your Current Team<\/a><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">9. Help Developers Understand Your Company\u2019s Culture<\/h3>\n\n\n\n<p>Related to the previous point, make sure the developer you hire understands your language and company culture to avoid any misunderstandings that may arise.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">10. Review Finished (&amp; Failed) Projects<\/h3>\n\n\n\n<p>An often overlooked part of project development is project review. Whether you implemented an ideal project, an imperfect project, or a failed project, it is important to review what went well and what went wrong with the project.<\/p>\n\n\n\n<p>In order to implement a successful project \u2014 regardless of what \u201csuccess\u201d means to you \u2014 you must first realize that project implementation is a holistic process. Every step of the process and every stakeholder can directly influence the project\u2019s success and failure. <\/p>\n\n\n\n<p>The list above is by no means comprehensive; however, it does capture some of the most important factors that lead to project success.<\/p>\n\n\n\n<p class=\"has-johannes-bg-alt-1-background-color has-background\"><strong>Read More<\/strong>: <a href=\"https:\/\/arc.dev\/employer-blog\/developer-onboarding-process\/\">How to Implement a Welcoming Software Developer Onboarding Process<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Wrapping Up<\/h2>\n\n\n\n<p>On average, 1 out of every 3 software projects fail, and more than 80% of projects run over time or over budget. Successfully implementing software projects can be crucial to the overall success of your startup, company, or business. However, as the failure statistics remind us, it is easier said than done.<\/p>\n\n\n\n<p>Implementing a successful project takes more than one person and one party \u2014 it must be a collaborative effort between all stakeholders. Some of the most important factors that determine the success or failure of a project lie in&nbsp;successful project management&nbsp;and staff involvement. <\/p>\n\n\n\n<p>If you\u2019re working with full-time employees, it is crucial to encourage all stakeholders to establish ownership of software projects. If you\u2019re working with freelance developers, make sure to select&nbsp;services&nbsp;that offer highly qualified freelance developers and project management support.<\/p>\n\n\n\n<p>We always welcome and enjoy your feedback. Feel free to leave any questions or comments below, and thanks for reading!<\/p>\n\n\n\n<p><em>You can also try <\/em><a href=\"https:\/\/arc.dev\/\">Arc<\/a><em>, your<\/em><em> shortcut to the world&#8217;s best remote talent:<\/em><\/p>\n\n\n\n<p><em>\u26a1\ufe0f Access 450,000 top developers, designers, and marketers <br>\u26a1\ufe0f <em>Vetted and ready to interview<\/em><br>\u26a1\ufe0f Freelance or full-time<\/em><\/p>\n\n\n\n<p><a href=\"https:\/\/arc.dev\"><\/a><a href=\"https:\/\/arc.dev\"><strong>Try Arc and hire top talent now \u2192<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>A third of software projects fail and half of them cost almost double their original estimates. Here&#8217;s how to avoid failed software projects!<\/p>\n","protected":false},"author":8,"featured_media":1144,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-1141","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-management"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>10 Ways to Avoid Failed Software Projects &amp; Why They Fail to Begin With<\/title>\n<meta name=\"description\" content=\"A third of software projects fail and half of them cost almost double their original estimates. 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Here&#039;s how to avoid failed software projects!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/arc.dev\/employer-blog\/avoid-failed-software-projects\/\" \/>\n<meta property=\"og:site_name\" content=\"Arc Employer Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/arcdotdev\" \/>\n<meta property=\"article:published_time\" content=\"2021-09-06T15:33:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-03-08T14:28:22+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/arc.dev\/employer-blog\/wp-content\/uploads\/2021\/09\/avoid-failed-software-projects.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1128\" \/>\n\t<meta property=\"og:image:height\" content=\"635\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Jennifer Fu\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@jenniferfu0811\" \/>\n<meta name=\"twitter:site\" content=\"@arcdotdev\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jennifer Fu\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"7 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/\"},\"author\":{\"name\":\"Jennifer Fu\",\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/#\\\/schema\\\/person\\\/d4d7d561a948819c41e6dff59ae7d910\"},\"headline\":\"10 Ways to Avoid Failed Software Projects &#038; Why They Fail to Begin With\",\"datePublished\":\"2021-09-06T15:33:00+00:00\",\"dateModified\":\"2026-03-08T14:28:22+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/\"},\"wordCount\":1542,\"publisher\":{\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/wp-content\\\/uploads\\\/2021\\\/09\\\/avoid-failed-software-projects.jpg\",\"articleSection\":[\"Management\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/\",\"url\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/\",\"name\":\"10 Ways to Avoid Failed Software Projects & Why They Fail to Begin With\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/avoid-failed-software-projects\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/arc.dev\\\/employer-blog\\\/wp-content\\\/uploads\\\/2021\\\/09\\\/avoid-failed-software-projects.jpg\",\"datePublished\":\"2021-09-06T15:33:00+00:00\",\"dateModified\":\"2026-03-08T14:28:22+00:00\",\"description\":\"A third of software projects fail and half of them cost almost double their original estimates. 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