How do you calculate ROI for software development?
Return on Investment, or ROI, is a figure you need to understand and determine at the very beginning of a project to ensure you get a positive return on your investment – so how do you calculate ROI for software development? In the past (decades ago), software was considered a necessary overhead expense, it was a cost to a company. Now a business considers software as a critical part of their infrastructure and competitive advantage. So this means a software development project needs to be run like a profit centre, and this means performing the requisite sums to get the funding to run the project. Why ROI for software development? ROI is a very valuable financial measurement to determine how a company’s resources will be used to deliver maximum profit. The goal of software development is to generate more revenue than it cost to develop the product, or at the very least recoup the investment made into the custom piece of software. Here are a few reasons why you sh...