For enterprise leaders, the pressure to deliver new digital products is high. Software projects run late, overrun budgets, and disappoint users. Research from Boston Consulting Group shows that 30% of software development projects miss time or cost targets, and half of those still fail to meet expectations. For CIOs and COOs trying to balance innovation with financial discipline, the gap between intent and execution is a business risk.
Many organisations still treat software development as a predictable, linear exercise. Justin Megawarne, managing partner at Megaslice, argues that too many development partners offer off-the-shelf solutions to problems that are anything but simple. The result, he says, is that companies spend heavily before they validate what users actually want.
Megawarne says many development firms give a modest initial estimate, then charge by the day until the budget runs dry. Leaders often realise too late that they have funded a build that either takes far longer than planned or fails to deliver meaningful business value.
He suggests shifting the engagement model: sell the idea internally and externally before you build software, and confirm there is genuine demand.
The risk of unchallenged ideas
Strong ideas falter when they go untested. Megawarne says what teams ask developers to build often differs from what the business needs. Founders and senior sponsors become attached to their vision, believing that technology will compensate for an unclear market fit. But technology is not a cure-all, and how it is targeted matters more than how advanced it might be.
Megawarne advocates conversations about customer needs, price sensitivity, and delivery timelines. A partner that challenges ideas early — even to the point of discomfort — can prevent costly missteps and refine the concept into something more resilient. A cultural shift is important in large enterprises, where governance and investment cycles can dull the urgency of early testing.
How to decide whether to outsource
For non-technical leaders, the decision to outsource can feel opaque. Megawarne suggests that the best adviser may not be a development firm but someone from the same industry who has already built and scaled similar products. Lived experience offers clarity on where to invest and what to avoid.
Not every project needs an external team. Early prototypes may be feasible with internal resources, while long-term initiatives might justify hiring in-house specialists. Outsourcing works best when the organisation has money but limited time, or when internal teams lack specific skills. What matters is informed scoping.
Making technology follow the business
If an external partner is the right choice, Megawarne says the strongest software teams behave more like co-founders than contractors. They seek contact with end-users and understand the revenue goals behind the work. They also invest early in research: mapping the market, understanding customer personas, and validating need before writing code.
He says most business problems have several possible solutions, some more cost-effective than others. A partner aligned with the organisation’s interests will explore options and not bill by the hour. They work backwards from the budget and focus on delivering outcomes that improve ROI.
Improving ROI on software development
By re-framing software development as a business conversation first and a technical exercise second, enterprises can improve delivery and create products that people actually want to use.
(Image source: “Take A Seat, XVI [The High Cost of Living]” by darthdowney is licensed under CC BY-NC 2.0.)
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