The evolution of project management methodologies as software development companies grow

Abstract

Purpose: In the past years it was seen a rapid growth in companies operating in the software development industry and hence companies are constantly increasing in size and evolving. The purpose of this study is to conduct an analysis on how project management changes as soon as companies grow from micro to small and to medium sized enterprises. Specifically, it will focus on the change of the methodologies in software development lifecycles, priorities on constraints (cost, time, risk, quality, resources and scope) and tools and techniques used to maintain the constraints upon companies grow in size. Design: The research design is based on qualitative research methods using in-depth interviews with top management representing local companies that develop software in-house. Findings: Findings indicate that micro sized companies, do not follow a pre-defined software development methodology. Although they attempt to use an agile approach, there is a lack of structure due to the small number of employees. On the other hand, medium sized companies are more structured due to having project managers employed as full time to manage projects. It was also noted that micro sized employees are less risk adverse than larger companies. Conclusions: This study concludes that companies that fall under the definition of micro sized do not employ full time project managers. In fact, this is another task that has to be conducted together with many other roles by the few employees working for the company. On the other hand, medium sized enterprises generally do employ project managers and they have more processes and procedures in place when compared to micro sized companies. Value: This study tackles how project management differs as companies grow and change in size. Given the rapid increase in software development industry, there is a lack of research on the subject.