71% of companies are utilizing a methodology commonly referred to as
"flexible" or Agile. Most outsourcing projects are executed using
this approach. These methods are known for their high level of adaptability.
Contractors often tailor them to meet different customer needs. Outsourcing
companies tend to even label themselves as "Agile-oriented" and
highlight this model to their clients.
Despite the US government's investment in IT projects, they
have incurred a financial loss of $32 billion due to project failures.
Experts from the software development company Belitsoft describe the common issues in Agile
projects and recommend how to prevent them.
Budget risks.
It can be challenging to thoroughly predict
the cost of developing a new product in the early stages. Agile methodology
accommodates frequent changes to the product based on customer and market
demands. Therefore, a client may find that the expenses have exceeded the
initial estimate.
How to prevent
To manage costs, a contractor can propose adopting a LEAN
development approach. The team breaks down the work into smaller steps and
modules to provide more accurate estimates. Additionally, a supplier can
use Rolling Wave Planning, which involves making decisions and providing
estimates once all the requirements are clear. To achieve that, it's necessary
to implement best practices in business analysis and teamwork to help clients
find optimal solutions and access the efforts more precisely.
Scope creep risk.
This risk refers to the potential for
changes in the project scope during development. It can result in alterations
to timelines, changes in deliverables, and increased budget requirements.
How to prevent
To prevent scope creep and meet project deadlines, break the
development process into multiple phases, such as MVP, 1.0, 1.1, etc. This
approach helps maintain a relatively stable scope for each version while still
allowing for adjustments as needed.
The failure to adhere to Agile principles.
This risk
involves attempting to implement Agile methodology while adhering to traditional
management principles and approaches.
How to prevent
If clients are uncertain about their understanding of
Agile/Scrum principles and values, a contractor can explain and teach them how
to apply them correctly. Also, a supplier can keep track of how clients
implement these practices and provide guidance during the process if necessary.
Agile methodology is not appropriate for a project.
Agile
methodology is not universally applicable to all types of projects. Some
projects require a more traditional management approach similar to the
Waterfall model.
How to prevent
If a client wishes to use Agile methodology for a project
that is unsuitable for it due to reasons such as a clearly defined scope, fixed
budget, or specific requirements, a contractor has to make efforts to persuade
them to consider another approach that would be more beneficial. The
recommendations should be based on common sense, business requirements, and
project details.
Lower predictability.
The agile methodology involves
frequent changes, making it difficult to make long-term predictions.
Additionally, it can result in shifting deadlines and potential reputational
damage for the vendor.
How to prevent
Again, break down projects into smaller phases, carefully
define requirements, and provide estimates for a delivery time, budget, and
necessary resources. This approach enables clients to understand when they will
receive the next iteration of their system and at what cost. Using this
strategy, a contractor can maintain a high level of client satisfaction.
What are the potential risks for a vendor using Agile/Scrum methodology?
Lack of sufficient knowledge of Agile/Scrum.
In order for
Agile/Scrum to be successful, it is important to have team members who are
knowledgeable about the methodology. Without this expertise, the software
development team may encounter difficulties during the project. Additionally,
the skills of each team member should be taken into consideration. If someone
lacks the necessary experience or training, it can hinder the benefits of using
Agile.
How to prevent
To prevent this issue, make sure to assemble a team of
competent developers who comprehend Scrum and its principles. If some team
members lack experience, they should seek assistance from their peers. Motivate
and facilitate knowledge sharing and mentorship to educate and guide the
developers. Regular retrospective meetings encourage the practice of continuous
improvement.
A sudden stop of work.
This risk can occur when the product
is no longer in demand in the market or when the original goals were not set
properly. This situation can lead to a sudden stop in the work, which requires
extra efforts from the company and resource managers to avoid idle time.
How to prevent
Before the developing stage, a contractor needs to conduct a
discovery phase to gain a deeper understanding of the product, its purpose, and
its functions. A team of business analysts has to provide clients with advice
and suggestions on how to enhance the product and deliver more value to the end
users and the market. Throughout the development process, a vendor should
maintain constant communication with Product Owners and support them in finding
optimal solutions if necessary.
Technical debt.
Modifications to a project can result in
alterations to its source code, which may generate technical debt, quality
issues, or degraded system performance.
How to prevent
At the outset of a project, establish non-functional
requirements, such as performance and quality. Then, create a system
architecture that is suitable for meeting these requirements, employing
techniques like modular architecture or microservices. To ensure the quality of the final product, each task or user story is accompanied by
its own acceptance criteria and definition of done. For particularly complex
projects, utilize multiple stages, including a pre-production phase.
Conclusion
Agile is effective only when a project fulfills all certain
conditions:
- a cross-functional team composed of highly skilled
professionals;
- active client's involvement and their consistent willingness to collaborate with the team.
Agile is based on the principle of close communication and
collaboration with the customer, which enables the use of Agile methods to
reduce documentation and deliver high-quality software in a shorter timeframe.
This approach ensures that businesses pay only for the results that are
valuable to them.
In fact, most projects are not strictly Agile. Rather, each
project consists of a collection of iterative processes with unique
requirements, goals, and development approaches. Well-experienced contractor strives
to integrate the benefits of various methodologies, including Agile, into
software development. This approach allows a truly flexible and reasonably
priced solution.
