As we all know, software development can be an (at times extremely) costly endeavor. That’s why it’s so important to first understand how you can maximize your ROI.

In this article, I’m going to explain exactly how you can do this, using cost-saving strategies and implementing some preliminary research.

So whether you’re looking to improve your pre-existing projects or are just about to start with a new one, continue reading to learn more.

Steps To Maximize ROI On Software Development

Step 1: Do Your Homework

Consider this step the equivalent of studying before an exam. While we all know (and have probably done so) that you can get by without studying, it’s not the most sustainable practice for most of us.

That’s why it’s so important that you’re prepared.

So before even starting a new project, you need to look at a couple of things:

• What type of budget is available for the project?
• How much time do you have to complete the project?
• What problem does the software address? How is it useful? Is this something the end user wants?
• Are there any risks that might prevent your team from completing it successfully?
• Can you anticipate any post-release quality issues?

Considering and answering all of the above will put you in good stead when the practical work begins. It’ll allow you to (1) address issues before they arise, (2) understand whether the software is worth investing in at all, and (3) correctly budget your and your team’s resources.

Step 2: Create A SMART Goal

With the above in mind, it’ll be easier to create a SMART goal. (And no, I’m not just talking about a goal that is cleverly made.)

SMART stands for:

• S-pecific
• M-easurable
• A-chievable
• R-ealistic
• T-ime based

Creating this goal will help you (1) better structure the timeline, (2) understand what your team needs, and realize (3) what sort of time frame is needed.

Let’s look at an example:

Craig works for a software development company as the creative director. He’s come up with the idea of creating software that can test students on any learning material, provided that they indicate the content they’d like the software to test them on.

He decides that, before pitching this to his boss, he’ll first create a SMART planfor his project, so he considers the acronym:

S — Craig would like to create software designed specifically for primary school learners, as this will be easier to develop. He’s decided to design it so that it works well for learners aged 5-12.

M — Craig will know it’s working when the software accurately produces a report on how well the user did.

A — Craig knows that two of the developers in his company have experience making learning software for educational institutions, so he is certain that they are capable of pulling this off.

R — Craig understands that the company has just had a good quarter, and so is well able to budget for the project. He also knows they’ve recently completed a big project and are available for work.

T — Craig decides, based on (1) the large number of developers he can work with on this project, (2) their previous deliverables, and (3) their current availability, that his team can complete this project within two months.

Craig has now made a SMART plan, which will help him maximize his ROI.

He can now ensure that:

1.  He doesn’t waste company resources by over-evaluating his needs.
2.  He doesn’t disappoint shareholders by failing to meet the project deadline, thus risking their continued support.

Of course, this is just an example. You can make many SMART goals relating to the different elements of the project as well.

Step 3: Cut Down On Costs

Now that you’ve got a clear idea of what you’re doing and how you want to do it, it’s time to see where you can reduce costs to improve your ROI (and ultimately make your shareholders/clients quite happy).

You can start by doing some data analysis.

Consider how by looking at data on how the features of your software are being used, which features users make use of most frequently, and which are less so. You can then focus your efforts on those that are more valuable.

You can even remove features that simply don’t need to be there.

Another technique you can try out is process mapping.

The name says it all: With this, you have to map out exactly what the development process entails, from beginning to end.

On top of considering your SMART goal, process mapping will help you get a better idea of where your team will spend resources and time. And it’ll help you take note of bottlenecks and low-value areas.

Implementing automation may allow you to make significant strides in reducing labor costs.

Step 4: Consider Outsourcing & Freelance Workers

You and your in-house team don’t need to do everything. Outsourcing particular components of the development process will help you take advantage of the expertise that your team lacks and the cost benefits of international teams.

For example:

Full-time employees don’t have to do quality assurance and testing. This is especially true if you don’t already have someone to do this already. You could hire an external remote team to handle this at a fraction of the cost as well.

You’d be in good company: outsourcing is popular.

Research shows that worldwide IT outsourcing revenue is projected to continue to grow, up to over 430 billion dollars, in 2023.

Alternatively, and if you’re just starting up, you could even hire skilled freelance workers to assist you with completing the job. This is, without spending an arm, a leg, and another limb of your choice for a full-time salary.

Bettering Your ROI, One Step At A Time: Conclusion

By taking note of and implementing the above steps, you’ll be one (or, in this case, several) step/s closer to maximizing your ROI, improving project outcomes, and optimizing your processes.

And while doing preliminary research may seem like a lot of work, in the long term, it saves you a lot of time spent in crisis management and bug fixing.