• Sandeep Nair
    Head Of Business Development
    September 12, 2022

Five ways a wrong software development company can cost your business

The buzzwords for today’s businesses are agility, growth, and brand engagement. In the era of rapid technological advancement plus changing customer expectations, companies need to be on their toes to understand market trends and regularly upgrade their processes to stay ahead of the curve. The right software vendor for product development services can be a great asset to a business and a crucial influencer in its growth trajectory.

What is software product development? Why do you need product development services in the first place?

Customers are looking for better features in their software every few months. Hence software production does not end with merely creating a product. It involves updating the product with improved features and other value additions on a regular basis to the product to make it more relevant and appealing to the user. It involves keeping up with changing technology, discarding the ones that no longer serve your business goals, and implementing newer software to meet customer demand and market trends.

Buying and implementing new software is a complex and time-consuming process. Every software requires people with specific skill-sets to get the codes up and running. It is impractical for a business to hire new or train existing employees for every product iteration that involves new technology.

Software product development companies specialize in curating the best solution for businesses. They understand your business, offer you the right advice about which software fits your requirements, and give you an in-depth analysis of the associated risks. They have a team of technical and market experts to help you make informed decisions and remain ahead of the competition.

Choosing a vendor for customized software product development services should be a well-thought-out decision since a wrong step in this direction is bound to have ramifications on several fronts.

 Here are five ways a wrong software development company can cost your business:

Loss of revenue:

Software glitches can cost your business a lot of money. Small to mid-sized firms are at greater risk because they could cost their survival. Earlier this year, Nike missed meeting its quarterly targets because of a software malfunction. As a result, the shares of i2 technologies plummeted, resulting in losses of several million $. Nike attributed part of the blame to its software vendor, proving that even high-net-worth businesses suffer the consequences of a poor decision.

Loss of time and resources:

While the right software vendor will be proactive in learning about your business and asking relevant questions, an inexperienced vendor may not do the same. Poor communication will result in constant back and forth, revising designs, rectifying errors, and wasting precious time. Your technical team will spend time debugging faulty software instead of using its core strengths to create new products.

Loss of reputation:

A company that spends resources to straighten out its processes has none left to innovate or improve. The prolonged effort to keep up with market trends results in stagnation and sub-par performance, denting the brand image. Brand images take years to build, and a single mistake can prove costly. The company faces the uphill task of rebuilding its customer base and loyalty.

Loss of employee trust:

Employees are motivated and enthused when there’s enough opportunity to showcase their core skills, innovate, and grow. However, when the product development service provider proves to be the wrong choice, the team does the grunt work of salvaging the process, rectifying errors, and facing the customers’ ire. Employees lose trust and confidence in the company to take the right step. Dissatisfaction levels are the highest during a critical phase, often leading to attrition.

Loss of crucial data and credibility:

Going back and forth between old and new systems during a software breakdown can result in the loss of crucial data for the company. A data breach is a security threat and amounts to legal complications. It could get further blown out of proportion if your company handles sensitive data for other companies. Not only is your credibility under fire, but you are also putting your clients’ reputations at risk.

Travanleo has an incredible team of experts to help you make the right decision for your business. Our custom software development team eases the load off your shoulders and puts you on an accelerated growth track. Talk to us to know more.

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References:

https://www.tatvasoft.com/blog/software-product-development/#:~:text=Software%20Product%20development%20is%20the,development%20methodology%20of%20the%20system.

https://bambooagile.eu/insights/software-product-development-what-why-and-how/

https://www.bbconsult.co.uk/blog/benefits-hiring-custom-software-development-company

https://blog.intelex.com/2015/09/24/selecting-the-wrong-software-vendor-can-cost-you/

https://www.sawindia.com/the-cost-of-choosing-the-wrong-business-software/

https://www.kelltontech.com/kellton-tech-blog/how-choose-right-software-vendor-your-business-dos-and-donts-explained

https://www.olive.app/blog/the-true-cost-of-choosing-the-wrong-software-solution

https://www.cnet.com/tech/tech-industry/nike-software-glitch-pushes-i2-shares-lower/

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