Scribd
Upload
13 views2 pages

Types of Software Development Projects

The document outlines two main types of software development projects: software products, which are off-the-shelf solutions targeting diverse customers, and software services, which include customized software developed for specific clients or outsourced projects. It discusses the impact on profitability, noting that generic software products can provide long-term revenue but require significant upfront investment, while outsourced projects are less risky but yield only one-time revenue. Overall, the structure of software development companies is organized around these project types to meet market needs.

Uploaded by

Adwaitprasad Das
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
13 views2 pages

Types of Software Development Projects

The document outlines two main types of software development projects: software products, which are off-the-shelf solutions targeting diverse customers, and software services, which include customized software developed for specific clients or outsourced projects. It discusses the impact on profitability, noting that generic software products can provide long-term revenue but require significant upfront investment, while outsourced projects are less risky but yield only one-time revenue. Overall, the structure of software development companies is organized around these project types to meet market needs.

Uploaded by

Adwaitprasad Das
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

SOFTWARE DEVELOPMENT PROJECTS

Types of Software Development Projects:

A software development company is typically structured into a large number of teams that handle
various types of software development projects. These software development projects concern the
development of either software product or some software service.

1. Software Products:

- Software products are off-the-shelf and used by a diverse range of customers.


- The development team draws up the product specification based on market segment needs.

- Companies often develop product lines that target slightly different market segments.

2. Software Services:

- Software services can involve development of a customized software or part of a software in an


outsourced mode.

- Customized software is developed according to the specification drawn up by one or at most a few
customers.

- Companies often develop customized software by tailoring some of its existing software.

- Outsourced software can make good commercial sense for a company developing a large project.

- Since outsourced projects are usually small in size, they need to be completed within a few months or a
few weeks of time.

Impact on Profitability:

- A company that has developed a generic software product usually gets an uninterrupted stream of
revenue spread over several years.

- However, this entails substantial upfront investment and is subject to the risk of customer
acceptance.

- Outsourced projects are usually less risky, but fetch only one-time revenue to the developing
company.

You might also like