HOW TO HIRE THE RIGHT APP DEVELOPERS

Transcription

1 HOW TO HIRE THE RIGHT APP DEVELOPERS

2 Table of contents 1. Facts & Figures. p.4 Why do software and IT projects fail? 2. The importance of planning. p.12 From creating the MVP to the application s realease and beyond. 3. Keep it small. p.16 Small projects provide huge benefits. 4. The user experience. p.19 Understanding your user. 5. The software development process and project management. p.22 The engines that drive development. 6. Hourly rate vs fixed bid. p.29 Get the most bang for your buck. 7. Do your homework. p.34 Research the prospective company. 8. Summary p.36

3 How to Hire the Right App Developers Regardless of whether a large organization is introducing a new IT project or a small startup is building its first MVP, hiring software developers is one of the most important decisions any team will make. It is a decision that will determine a project s success or failure. Choosing a software development company can be a difficult process, as each one differs in their project management approach, pricing structure, time estimates, skills and experience. There is a large amount of trust that is handed over to the company when developing an application and this can leave entrepreneurs feeling quite vulnerable. Knowledge is Power! Knowing what to look for, what to avoid, and what to expect in the hiring process can help you feel more confident when making this important decision. This report will thoroughly explore the reasons why software projects fail, focus on ways to avoid failure, and highlight the keys areas that should be considered when choosing developers for your application. 3

4 FACTS & FIGURES Why do software and IT projects fail? 1

5 Uncovering the Reasons Behind Project Failure Software development is a young and booming industry. Unfortunately, the reality is that many projects fail. The causes can vary, but a few are consistent and common in most failed projects. Uncovering the reasons behind project failure within the software and IT industry has been the focus of many recent studies and surveys. 45% of all large IT projects exceed their budget. 2 78% of respondents claim the client is usually or always out of sync with project requirements. 3 75% of business and IT executives anticipate their software projects will fail. 4 IT projects in % Challenged 18% Failed 39% Succesfull 50% of respondents revealed that their project failed to consistently achieve what they set out to achieve. 5 70% of respondents have been involved in a project they knew would fail from the beginning. 6 5

6 THE BIG 3 There can be any number of reasons why projects fail, but most reasons can be traced back and linked to the following 3 areas. BUDGET COMMUNICATION, TRANSPARENCY, & EXPECTATIONS CHANGE & REDIRECTION 6

7 BUDGET 59% of IT software projects went over budget in The number-one priority for every young startup is to receive a working application that has been developed within budget, on time, and to its specifications. Most startups are probably working from a very tight budget or a newly acquired investment round, making cost a factor that needs to be optimized as much as possible. Budget related reasons for project failure and how to avoid them. Unrealistic and insufficient budgets Most startups aren t realistic about their budget and, as a result, end up receiving a half- built or half- finished application that is waiting on more funding to move forward. HOW TO AVOID IT Take into consideration your real requirements, needs, and wants. Decide if all the features, functions, and design elements in the application s initial release are absolutely necessary. More often than not, most parts can be introduced in later versions. This not only saves time and money, but it allows you to release the application much more quickly and to gain traction sooner. 7

8 Cheapest option available The decision shouldn t be solely based on cost, as the cheapest option isn t always the best and can actually end up costing more in the long run. Projects don t have to be incomplete or unfinished to be classified as failures. If the application doesn t do what it s supposed to do, or doesn t include the features and functions that it is meant to, then it is as good as incomplete. HOW TO AVOID IT Choose a software development company based on their experience, clients, and how well the company s previous work matches with your current project. Fixed bid This model is quite popular among software development companies, but is often the wrong choice for startups. Fixed-bid projects typically produce an application that contains far fewer functions and features than originally planned, or a completely inoperative application. It also damages other areas of the software development process that are fundamental in the project s success, such as the client and developer relationship, communication, and transparency. HOW TO AVOID IT Look for software development companies that offer services at an hourly rate. This model offers better value for money, enables quicker progression, provides transparency, and enriches the relationship between the you and the developers. The fixed -bid and hourly- rate models are explained in more detail below. 8

9 COMMUNICATION, TRANSPARENCY, & EXPECTATIONS Inadequately planned projects and lack of communication and transparency lead to either a failed project or an end result that is significantly different from the client s original vision. Communication Communication channels between the developers and your team need to be open from the very start. Lack of communication, at the beginning and throughout the project, is one of the main reasons why projects fail. Even if the developers and the client seem to be on the same wavelength, the end result often illustrates how different the initial views actually were. Failing to effectively communicate desired features, functions and direction may ruin the project and the relationship between the two parties. HOW TO AVOID IT To avoid this problem, the software development company should keep you updated about the project s progression and planned future stages on a weekly or biweekly basis. You should also respond to questions from the developers as soon as you can to maintain high pace. 9

10 Transparency Software development companies who fail to provide their clients with transparency put the project s success and relationship between the client and developers at risk. Receiving clear insights into the project will not only build trust and strengthen the relationship between the client and the software development company, it will ensure that the end result satisfies the client s needs. HOW TO AVOID IT Software development companies can provide transparency to their clients by providing them with monthly timesheet reports that show how many hours the developers spent on the project. Some will even give the clients access to their project management service, allowing them to see exactly how the project is progressing at any given time. Expectations Ensuring that the vision is understood by developers early on is vital for the overall progression and outcome of the application. Clients are sometimes under the false impression that their expectations are clear, and as a result, become complacent with asking questions, as they believe the developers are fully aware of their needs. This often results in the application failing to meet required specifications. HOW TO AVOID IT Constant communication and transparency will allow you to gauge how well your expectations are being met. It is important that you communicate expectations clearly and ask questions to confirm that the developers completely understand what it is you want; everyone should be on the same page. All of these measures do not require much energy to complete and will save a lot of time, money and stress for both parties. 10

11 RESISTANCE TO CHANGE Bad software developement companies resist change; great ones move with it Developing a web application, or any piece of software for that matter, requires continuous change. Problems are inevitable, and developers often have to look at new ways to get around them. Even if the project s original path seems like a straight, open highway, it can soon turn into a detour -filled winding road. HOW TO AVOID IT The ability to change the direction of the project is one of the keys to its future success. Great developers will draw on their experiences and choose a new direction, enabling the project to move forward with fewer interruptions and problems. The project s software development method is directly responsible for its ability to change the project s direction. Please see Part 5: The Software Development Process and Project Management for more information about this relationship. 11

12 THE IMPORTANCE OF PLANNING From creating the MVP to the application s release and beyond 2

13 If you fail to plan, you plan to fail. Project planning is a collaborative effort between startups and developers. This kind of cooperation early on will improve the working relationship, speed up the development process, and guarantee that the project is a success. The main planning phases in a web application project include: Confirming the concept and planning the direction This phase will delve deeper into the proposed application and confirm whether it s possible to achieve the desired outcome, what the limitations are, and which initial direction should be taken. Creating the MVP The MVP (Minimum Viable Product) strategy plays an important role in web application development. This strategy allows developers to produce a working product as soon as possible so startups can test their products on a group of users and receive instant, valuable feedback. Any software development company worth their salt will be able to assist in the creation of the application s MVP. Based on their experience, they should suggest which objectives should be classed as priorities and which should be set aside for implementation in either later stages or after launch. 13

14 Development Once the MVP is created and the plan is put into place, the next stage is for the developers to start creating the application. In this stage, it is important that communication between your company and the developers is open and clear. Do not refrain from asking questions and checking on the progress of your application. Most professional software companies will keep you up to date at every stage of the application s development and will provide full transparency in all areas. Testing The testing phase evaluates the application for bugs, network issues, performance and capability problems, and discrepancies. Testing is a vital part of the application s life cycle and should have a reasonable amount of time assigned to it (about 30% of the total development process should be set aside for testing). If the application is tested properly and at the right stages, it saves time, increases quality, reduces bugs and defects, and ensures that the application s features and functions work correctly. There are a number of different methods that can be used for testing an application and most are linked to the software development process. Testing processes in the agile methodology and the traditional model are explained in more detail in The Software Development Process and Project Management section below. 14

15 Ongoing support, maintenance and further development Ongoing support and maintenance of the infrastructure and environment should be offered by the software development company that created the application. This support and maintenance will allow you to move forward with the application without having to worry about the technical side. More often than not, the software will require further development, which will probably include the additional features and functions that were excluded from the original plan, or those that were thought up during the development process. When looking at prospective software development companies, consider those that have long -term relationships with their clients where they not only created the application, but are also supporting and maintaining the infrastructure and developing the application further. An important factor to consider is the company s reaction time to unexpected infrastructure problems and unplanned server downtime. They should present a support agreement that states the different levels of support and their respective response times. If you don t have your own admin team that is able to handle the infrastructure and server monitoring for your application, then investing in the support plan on offer is a wise choice. This will not only prevent sudden and major problems from occurring, it will also resolve any unforeseen issues that may arise. 15

16 KEEP IT SMALL Small projects provide huge benefits 3

17 Dream big, Think small Smaller projects are easier to manage, can be developed in a shorter time frame, reduce runaway costs, increase the success rate and decrease the failure rate. When startups begin thinking about their project, they start envisioning all of the amazing features and functions that they want it to include. Soon, the project goes from being a small or medium sized project, to a large-scale IT project. While it is important for the application to contain all the fundamental features and functions, adding extras, especially in the initial stages of development, can add with them unnecessary costs and considerably lengthen the project time. Success favors the small The success rate with smaller projects was highlighted in a recent study that was conducted by the Standish Group 8. The report showed that small projects enjoyed a success rate of 76% and a failure rate of just 4%, compared to a success rate of only 10% and a failure rate of 38% for large projects. 7 Small projects 4% Failed 76% Succesfull 20% Challenged Large projects 38% Failed 10% Succesfull 52% Challenged 17

18 A 2012 Gartner user survey also backs up the small is better theory as it discovered that the larger the IT project, the more likely it is to fail. The survey illustrates the difference in success and failure rates between small, midsize, and large IT projects. They found that as the project became bigger, the success rate fell and the failure rate increased. Distribution of Success and Failure Across Project Sizes 9 Small IT projects (<$350,000) Midsize IT projects ($350,000 to $1M) Large IT Projects (budget exceeds $1M) 20% Failed 25% Failed 28 Failed 80% Succesfull 75% Succesfull 72% Succesfull The benefits of keeping it small Keeping projects as small as possible provides many benefits, including: Rapid prototypes and test assumptions The developers are able to produce working prototypes quicker and test their performance, which enables them to move through the project faster. Validate the ideas If a project is small, startups and developers are able to validate the original ideas at the beginning of the project and then move on to the other stages of development. The validation stage in complex and lengthy projects doesn t usually occur until the later stages of development, because of its size. By that time it is too late to change or adjust the scope and direction of the project, which results in budget blowouts and extreme time extensions. Minimize the risk Performance issues, limitations, and unexpected problems can all be addressed and tackled early on in the project and also at every stage of development. Experienced software development companies will be able to assist in decreasing the size of the project by adjusting its MVP and combining certain parts of the project together as the development process advances. 18

19 THE USER EXPERIENCE Understanding your user 4

20 It s more than just how it looks Design is not only about how the product looks, it s also about how it works. Because software development is a costly activity, it is very important to well define the aspects that will be implemented. When designing your user experience, it s important to consider everything from how your product will look, its workflows, what type of messages it sends, and other aspects to determine if it will help your customers easily achieve their goals and leave them with a favorable impression of your product. A critical mistake made by a lot of design teams is to skip over this element and go straight to designing the aesthetics and jumping into development. Never underestimate the value of a good designer A good designer will help clear up the project s vision, mission, and main goal. They will help define the outcome of the project and create a clear roadmap of development, starting with the MVP version and the order of the next features. Using sketches, mockups and wireframes; conducting research; analyzing the potential competition and looking for their weak spots will enable them to come up with a clear vision that will plan out and prioritize work after the successful MVP phase. Additionally, in some cases, brainstorming with the designer can bring up new ideas and insights that will present a new approach to the application. Experienced design teams know the value and importance of great visual aesthetics, creating a unique and unified brand as well as a distinctive look and feel. All of these elements help make the product recognizable and distinguishable from others. 20

21 Designing the experience The user experience (UX) and user interaction (UI) aspects play a major role in a web application s success. UX engages the customer and evokes emotion, while UI allows them to effortlessly complete their desired actions and goals. The process of creating a great UX and UI isn t only about considering how the application will appear visually, it s also about understanding the users and their behavior. A good designer will help you define core user groups and assist in identifying main goals for the application, which make for an exceptional user story and user experience. Also, the journey through the product - whether it s an application, internet service, or plain information website - will be easy and enjoyable. Usability testing should be conducted throughout the design process to ensure that the UX and UI aspects meet business requirements. Continuous improvement Optimizing the UX and UI is a never -ending process, especially with consumer products. Understanding how people interact with products and constantly improving that experience is imperative to the success of any company. Technology s rapid evolution and the introduction of new devices require designers to continuously improve and adapt their work. Your business requirements will always be met with a designer on board who recognizes this continual need for change and improvement. For startups that want to release an application their users will love and value, having a talented UX/UI focused designer is a must. 21

22 THE SOFTWARE DEVELOPMENT PROCESS AND PROJECT MANAGEMENT The engines that drive development 5

23 The software development process is made up of many different phases. PLANING REQUIREMENT ANALYSIS DESIGN & ARCHITECTURE IMPLEMENTATION QUALITY ASSURANCE & TESTING DEVELOPMENT & CODING MAINTENANCE, SUPPORT & DOCUMENTATION Project management is a critical part of the process. It ensures that each phase is executed correctly and that the project is planned well, implemented properly, and constantly monitored and controlled. There have been a number of new methods introduced over the last 25 years. Some are based on traditional methods, while others are completely new concepts. Each software development company has their own preferred method, one that they believe is best for both the client and developers. Two of the most common project management methodologies are agile and traditional. 23

24 AGILE VS TRADITIONAL Agile methodology Introduced in the early 1990s, this method has been gaining traction and popularity ever since. The agile approach to software development focuses on minimizing risk, optimizing the time spent on developing the application, and producing a working product as soon as possible. The developers are able to achieve this by working in two -to four -week sprints (increments). Each sprint is like a mini- project in itself, with tasks centered around the most necessary or most important areas that need to be completed for each phase of the project. This type of application development allows developers to foresee and react to any issues that may arise along the way and set the project on a different, more effective course. The different development phases in the agile methodology are all interconnected. REQUIREMENT ANALYSIS DESIGN & ARCHITECTURE IMPLEMENTATION QUALITY ASSURANCE & TESTING DEVELOPMENT & CODING MAINTENANCE, SUPPORT & DOCUMENTATION 24

25 Agile Testing The testing phase in the agile method is a continuous process. It starts from the very beginning when the first pieces of code are written, endures through the application s life cycle and continues on after the application s release, when new features and functions are added. There are three main types of agile tests: Unit tests These tests are carried out on small, operational pieces of the application in isolation. Their goals are to determine if the pieces are fit for use, to detect any bugs that may cause problems when they are integrated with the rest of the application. Unit tests reinforce code quality and reduce the number of bugs. Integration tests Unlike unit tests that separately evaluate individual pieces of the application, the integration test phase assesses these parts as a group to see how well the different pieces work together. Functional tests This test ensures the application does what it s meant to do and that it meets all client and developer requirements. Communication and transparency One of the keys to success in an agile project is constant transparency, communication, and feedback from the client. The agile method encourages the client to be more involved in the project, which allows them to change or adjust the scope and add or remove certain features and functions from the application. They also benefit from this methodology as they develop a better understanding of the project s direction and progress. The change-responsiveness factor, both from the developer s side and from the client s side, is one of the main advantages of the agile methodology and main reasons why it has a higher project-success rate than the traditional method. 25

26 Traditional (Waterfall) The traditional method as a software projectmanagement model dates back to the 1950s and is based on the project management method used in manufacturing and construction industries. It was developed in response to the lack of other models available at that time. This model calls for developing applications one stage at a time and is considered very rigid and linear. The project starts at the first stage and then, once completed, moves onto the next stage without the possibility of turning back to previous stages. Traditional Testing The traditional model s application testing phase occurs at the end of the development process and is usually conducted by an independent group of testers, not the developers. This phase is also used as a project buffer so that, in the event of project delays, more time can be spent developing the software. This, of course, runs into the time set aside for testing, and compromises the effectiveness of the testing process. REQUIREMENT ANALYSIS DESIGN & ARCHITECTURE IMPLEMENTATION QUALITY ASSURANCE & TESTING DEVELOPMENT & CODING MAINTENANCE, SUPPORT & DOCUMENTATION Theoretically, this model should produce a finished application within a set time frame. Unfortunately, software development isn t that straightforward and change is always inevitable, no matter how small the project. The traditional model doesn t allow for any change during development. 26

27 The proof is in the project Much debate has arisen from those within the software development field as to which method produces the highest number of successful projects. Results from Ambysoft s 2013 Project Success Rates Survey state that the agile method produces higher success rates at 64% compared to the traditional model at 49%. Comparing IT project success rate by paradigm: Agile Waterfall 8% Failed 18% Failed 64% Succesfull 49% Succesfull 28% Challenged 33% Challenged The survey also looked at other areas of the software development process (Product Quality, Stakeholder Value, ROI, and Time/Schedule) and concluded the following results: Comparing software development paradigms (scale -10 to +10) Agile Traditional Product Quality Stakeholder Value Roi Time/Schedule

28 As the graph above illustrates, the agile method outperforms the traditional model in all areas. The 2011 CHAOS report from The Standish Group 11 found that the agile approach produced more successful projects than the traditional (waterfall) approach as well. It defined the success of a project on the following criteria: Project delivered on time. Project delivered on or within budget. Project included all the planned features. Agile 9% Failed 42% Succesfull 49% Challenged Waterfall 29% Failed 14% Succesfull 57% Challenged 28

29 HOURLY RATE VS FIXED BID Get the most bang for your buck 6

30 Only 33% of projects were delivered on budget in Software developers provide a service, not produce a product When it comes to the financial side of developing an application, clients are usually presented with two main payment options - the hourly -rate model and the fixed- bid model. For many young startups, this decision can often lead to confusion, as they may find it hard to decide which option is the best for them. This decision should not be taken lightly and should be carefully analyzed based on your company s requirements, needs and desires. The important thing to remember is that software developers are providing a service, not producing a product. Applications can be built in 100 different ways, use various programming languages, and utilize any number of different databases and platforms. When faced with the financial offer, bear in mind that developing an application isn t a clear -cut process and it is extremely difficult to produce the desired result within a fixed budget. 30

31 The hourly-rate model The hourly- rate model works by establishing a per- hour fee for the development of an application, rather than quoting a total, fixed price for the entire project. Popular among experienced software development companies, this model encompasses many advantages that benefit both the client and the developers. It also coincides with the agile methodology, as they both correspond with progressive advancement of software. The fixed-bid model Fixed bid is a term used to describe the situation where a client pays a set price for a fixed scope of work. There is a preconception that this model provides clients with a working application within budget. However, projects that are developed according to the fixed- bid option often constrict the quality of the code, architecture and design because it enforces strict and unalterable time constraints. How do the two models compare with the following aspects of the software development process? 31

32 Predicting the future There are many complex parts that make up a web application and all of these parts bring about their own issues and constant need for change and redirection. Software developers must be able to react with speed to problems, changes within the scope of the project, and the alignment of the project s direction. No development team, no matter how experienced they are, will be able to predict how a project will unfold and guarantee an exact time frame and price. The hourly-rate model One of the main advantages of working with the hourly -rate model is that change and redirection are expected, and as a result, are easy to manage. The final product is guaranteed to meet the specific requirements and incorporate all the necessary features, functions and design elements. The fixed-bid model Working with the fixed- bid model disallows changes within the project, regardless of the stage. The end result usually falls well short of acceptable and often doesn t include many of the features, functions or design elements that were originally planned. The client and developer relationship The relationship between the client and developer must be watertight in order for the project to be a complete success. Transparency and client involvement ensure that the end product precisely meets the expectations and business objectives. The hourly-rate model This model provides the client with direct insights into the project and its development, and forces the client and the developer to work in unison. The fixed-bid model The fixed- bid model essentially makes the client and developer work against each other. Here, the developer s goal is to create the application as soon as possible and well 32

33 The developer-client relationship is strengthened because of the close working relationship, regular communication, and overall transparency that this model provides. within the paid time frame, and the client s goal is to get the application they want. What usually ends up happening is that both parties argue over the features, functions, and design elements of the application. In addition, changing even just the smallest part becomes either a huge issue or one that doesn t get addressed at all. The stress on both sides is much higher with this model, and in some cases, the project ends up being terminated because both parties are unable to work together. This means that the client is without a working application, and the developer has to absorb the costs. Project speed Most projects have a strict time frame that has been placed by either the stakeholders or by the eager entrepreneurs themselves. The speed and eventual completion of the project greatly depend on the management method (agile or traditional). The hourly-rate model Because the hourly -rate model goes hand in hand with the agile methodology, starting the project early, making short iterations, gathering feedback, and introducing improvements to the initial concept are all real possibilities. The fixed-bid model The project s scope needs to be precisely defined before any work can begin, as the developers want to reduce all the risk they possibly can. This process can take quite a long time, which should be spent on actually developing the application. 33

34 DO YOUR HOMEWORK Research the prospective company 7

35 Know what to look for It s important for startups to conduct research on their prospective software development company. Understanding what sort of business the software company runs, who their clients are, and what kind of track record they have will ultimately assist in deciding which company is the best match for you. The company s previous applications Before you choose a software company, check previous work and look for similarities between their completed projects and your future project. For example, if you want to build an application that has an emphasis on responsiveness, check the company s portfolio and look for projects that focused on developing responsive applications. The company s previous clients Client referrals provide the best insights you can possibly get. Looking at the type of client, size of the company, and the comments that they made can help determine whether a software company is the right match for your project. 35

36 SUMMARY 8

37 All in all, choosing a software development company can be a daunting task for many young startups. However, knowing what to look for and what to avoid can make this task relatively easy and can ensure that the project is a success from day one. TAKEAWAYS Create a foolproof plan. Be realistic about your budget. Keep it as small and simple as possible. Don t underestimate the power of great UX/UI design. Embrace progressive software development (agile). Ask What is the hourly rate?, not How much will it cost? Keep communication channels open. Check the software development company s portfolio and look for similarities. 37

38 The Clearcode Advantage Clearcode is a software house with a passion for technology. Our company consists of over 74 highly-skilled professionals, including frontend and backend developers, designers, sysadmins, and project managers. We produce high-quality web applications for startups and large corporations in all areas of the tech industry. Clearcode has helped many startups get off the ground by assisting in MVP creation, initial planning, development, application release, additional application development, support and monitoring. Our agile approach to software development enables us to produce a working application in a shorter amount of time, allowing the client to assess the initial market and make changes accordingly. To find out how Clearcode can help you make your web application project a success, please contact us. Phone info@clearcode.cc

39 REFERENCES 1. CHAOS Manifesto 2013, The Standish Group Michael Bloch, Sven Blumberg, and Jürgen Laartz, Delivering large-scale IT projects on time, on budget, and on value. McKinsey & Company, in conjunction with the University of Oxford, October Oakbrrok Terrace, Up to 75% of business and IY executives anticipate their software projects will fail. Geneca, com, March Oakbrrok Terrace, Up to 75% of business and IY executives anticipate their software projects will fail. Geneca, March KPMG Project Management Survey 2010, KPMG, IT Project Success Rates Survey Results, Ambysoft, CHAOS Manifesto 2013, The Standish Group Source: The CHAOS Manifesto 2013, The Standish Group Small projects are defined as projects with less than $1 million in labor content. Large projects are defined as those with more than $10 million in labor content. 9. Lars Mieritz, Gartner Survey Shows Why Projects Fail. Gartner, June IT Project Success Rates Survey, Ambysoft, CHAOS Report. The Standish Group KPMG Project Management Survey 2010, KPMG,