So you're about to build another software product. Well since your last project didn't go exactly as planned, you're looking at some alternatives. We'll look at some different development models that are used and some of the issues surrounding them. But first, let's quickly review the state of software development.

Over the recent years, about 25% of software projects are delivered on-time, 25% are cancelled outright and the other half are late, over budget, or both1. This is not a good track record for our industry. The best you can really do is tie, as you have a slim chance of delivering early or under budget.

With that said, let's look at some delivery options and explore their pitfalls and windfalls.

Home Depot Model (aka Do it yourself)
This is the first reaction for most organizations. I'll build it myself and maintain complete control of all the variables. The developers in these organizations will absolutely want to do it themselves, even if they're not completely qualified or too busy on other projects.

Pitfalls
Many organizations are hesitant to bring in contractors or outsource projects due to cost and possible culture ramifications. However, some development shops aren't very realistic when it comes to assessing their strengths and weaknesses. So the main pitfall is being overly optimistic regarding strengths and the ability to actually deliver on-time and on-budget.

Windfalls
Of course there are many benefits to developing projects internally. You know the company's culture and history; assumedly you know more about what the product's ultimate purpose is and so on. It's also likely that you feel more loyal than some outsiders would and therefore your commitment level to the project is higher.

Supplemental Staffing Model
This is perhaps the most common model and rightly so. It allows you to use the advantages you have, keeps most of the key knowledge in house and acquires the outside expertise you may be lacking. One benefit often overlooked in this model is that fact that outsiders will many times point out issues with your development that you may have overlooked before.

Pitfalls
One of the biggest problems with this model is relying too much on key contractors. Some times developing a team atmosphere can be a problem too, depending upon the personality types of the team members.

Windfalls
Getting the expertise you need, when you need it, is paramount. This model really provides the best of all worlds and has a great chance for success.

Total Outsourcing
This model has its place, but it carries larger risks. It is best used for either very large companies or very small companies with little or no staff. For all outsourced development, be sure to allow time for a knowledge transfer at the end of the project and demand complete documentation at every step.

Offshore Outsourcing

Pitfalls
There's plenty to pick from here. Offshore should really be left for the companies who have the means to do it right. There must be plenty of preparation and logistics in place to make it work and even then its primary benefit is cost savings. Expect about 20-30% savings if done right. Organizations trying to save more than 30% many times end up with nothing. The main hurdle here is communication. Foreign programmers have a difficult time understanding requirements and if you're not careful, you may get what you asked for, but not what you really wanted.

Windfalls
The benefits come in cost savings and using your other resources more strategically.

Onshore Outsourcing

Pitfalls
The main issue here is somewhat ironic. Since you're working with local people, you may not prepare as much as you should. This forces the team to either slow down or interpret requirements themselves.

Windfalls
There is certainly less risk here and it's much easier to see progress and communicate with the development team. It also frees up other key staff for more important work.

As you can see, there's no one perfect development model. Just be sure you're aware of the pitfalls before you start.

John Fox (jfox@swatsolutions.com) is vice president of professional services for SWAT Solutions, which provides software quality assurance services on site as well as from their QA Lab.