In the Information Age, software has spread to all areas of our lives, making individuals and businesses highly reliant on modern technologies to perform daily activities.

Thus, even despite the pandemic bringing a temporary decline in market expansion, software development is already resuming its growth trajectory.

With more and more companies deploying tech solutions, it’s only natural that they find themselves facing various challenges of software engineering along the way. After all, no matter how skilled a team you have, issues almost always turn up.

As a business leader, the best way to tackle these difficulties is by being aware. Hence, in today’s post, we want to discuss the most common software development challenges teams tend to encounter and share some tips on how to solve them. Let’s get started.

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Project Health Check

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Common Issues in Software Development

Of course, depending on the industry you operate in, the project management methodology you decide to follow, and whether you choose to outsource development or utilize your in-house team — the problems you face will vary.

However, no matter the type of application you’re building, there are some common software implementation challenges you should be prepared for.

Rapid Technology Advances

Rapid Technology Advances

It’s no secret that technologies are advancing at high-speed rates, and keeping the pace up with innovations can be a challenging endeavor. Not only because teams have to continuously stay on top of best practices but also because many organizations are still struggling to transform their internal systems and processes to be on par with the modern world.

The truth is that outdated legacy systems can cause significant damage by hindering productivity, escalating costs, and wasting invaluable time. The missed opportunities quickly pile up and before you know it — a competitor has quickly overtaken you by modernizing legacy systems to optimize internal operations.

Find out how Velvetech Performed Legacy System Migration to Boost Productivity

Tips on dealing with rapid technology advances:

Regulatory Compliance

Regulatory Compliance

Another common software engineering difficulty that you may encounter is the need for your solution to adhere to data privacy regulations as well as some industry-specific laws.

With the regulatory landscape becoming more and more complex, teams often face regulatory compliance challenges since no solution should be released prior to checking that everything’s in order. After all, you want your users to feel safe while also avoiding potential penalties.

Those in finance will likely have to deal with PCI DSS, PSD2, and SEPA regulations. Healthcare-focused firms will need to stay on top of HIPAA. Those that operate in Europe won’t manage to bypass GDPR and those in the state of California — CCPA. You get the picture.

Tips on ensuring regulatory compliance:



The more organizations rely on technology, embrace Big Data and IoT, transition to cloud-based platforms, and implement other IT innovations, the more efficient and flexible they become. Yet, these advantages tend to come with increased security risks.

As firms process and store sensitive information online, they become prime targets for cybercriminals itching to get a hold of the data. Naturally, any breach can generate enormous losses for an organization. Whether it be in the form of customer churn or financial implications, data leaks are something you want to avoid.

Tips on boosting your cybersecurity:

Discover how a Blockchain-Based Intrusion Detection System Prevents Breaches

Business Information Confidentiality

Business Information Confidentiality

Sharing your business information with third-party software vendors and development companies is another one of the challenges in software engineering. While outsourcing your project, maintaining confidentiality is crucial as you need to safeguard proprietary information, trade secrets, and intellectual property.

During the development process, your team will produce unique algorithms and codebases as well as engage into strategic insights. Plus, you may have to navigate diverse compliance requirements and cultural norms, which adds complexity to the task of keeping your confidential information safe.

Tips on protecting sensitive information:



The intricate nature of budgeting might present a problem in software engineering, even if it’s not obvious at first sight. You see, the estimation of project costs seems to be elusive amidst evolving project requirements and unforeseen complexities. Factors such as scope creep, changing technology landscapes, and the need for specialized talent often lead to budget overruns or compromises in quality.

Moreover, balancing innovation and cost efficiency adds another layer of complexity. It ultimately requires businesses to meticulously plan and adapt their budgetary allocations.

So, while optimal budgeting is one of the key challenges you may face in software development projects, your IT priorities shouldn’t suffer because of it.

Tips on effective budgeting:

Realistic Software Project Estimates

Project Estimates

Watch our webinar to learn about the practical ways to evaluate your software project estimates.

Project Management

Project Management

One of the key reasons in software development that often causes project delays is lack of organization. At times, due to poor project management, unclear goals, or frequent requirement changes, teams start multitasking and fall behind on the pre-settled plans. Naturally, this is something that all stakeholders want to avoid.

Tips on facilitating excellent project management:

Find out How to Best Explain Your Business Idea to the Development Team

Talent Shortage

Talent Shortage

According to research, in the last five years, more than half of global organizations have experienced a tech skills shortage that has held them back. Specifically, in the areas of cybersecurity, enterprise architecture, and advanced analytics.

Hence, it’s no surprise that attracting top IT talent is one of the major problems in software engineering. Moreover, once you’ve found skilled specialists, it’s imperative to ensure they’re continuously improving their expertise. Hence, you might also face some difficulties when coming up with long-term onboarding and training strategies.

Tips on accessing and keeping top-level talent:

How to Deal With the Shortage of Software Developers

Lack of Developers

Find out how to deal with the lack of IT talents without compromising project delivery.



In the modern world, most businesses have various systems, applications, and programs working in parallel to fulfill different organizational needs. However, integrating all this software for maximum efficiency can be a real challenge for developers.

Hence, if you have an ERP system, CRM platforms, contact center applications, and other programs that weren’t built with integration in mind — you may face major software development challenges. Luckily, they can be resolved and prevented.

Tips on avoiding problems with third-party integration:

Learn how a company Boosted Productivity by Integrating a CRM with Accounting Software

High Competition

High Competition

The tech industry is booming, and new players are constantly entering the market with their innovative solutions. Thus, if you’re building a consumer-facing product, competition is bound to be stiff.

Unlike some of the technical challenges in software product development we’ve discussed above, high levels of competition require a strategic approach to be tackled. After all, you want your final solution to stand out and perform well — otherwise, why invest all that time and money?

Tips on surpassing competition:

Human Factor

Human Factor

No matter the software your organization has set out to build, what you’ll be dealing most often with are people. Various stakeholders, including company leadership, developers, and outside vendors, will all have to collaborate extensively to ensure the final product is the best it can be.

However, as is the case with any team, conflicts can arise, and accounting for this human factor isn’t always easy when trying to foresee software development problems. Thus, it’s natural that it can grow into another challenge on your software engineering project.

Tips on dealing with the human factor:

Avoiding Problems in Software Development

As you can see, there are quite a few software development issues and challenges you may encounter in your projects. From ensuring regulatory compliance and high levels of security to effectively managing people and project budgets — new IT tools may not always come easy.

However, at Velvetech, we believe that with the right preparation and approach, all challenges can be overcome. Thus, if you’re looking for a partner offering software development services to help you navigate the tricky tech world — don’t hesitate to reach out. We will be happy to leverage our extensive expertise and develop a truly unique solution for your organization.

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