Before any software development project kicks off, it’s essential to have a clear scope of work in place. This document should be ready even before the planning phase begins.
Without a well-defined scope of work to guide what needs to be done within a set time and budget, businesses risk overspending. In fact, a recent survey revealed that 41% of companies experienced cost overruns during global enterprise resource planning (ERP) projects in 2022, a significant increase compared to the previous year. Keep in mind, though, that going over budget doesn’t always mean the expected value is achieved.
That said, creating a software development scope of work can be challenging since it’s not always straightforward. In this article, we’ll walk you through a simple step-by-step process to create a solid blueprint, plus some helpful tips. If you’re still overwhelmed or pressed for time, our team at EZtek Software, a top software development company based in Vietnam, is always available to assist.
The Basics of a Software Development Scope of Work
To create a successful software development scope of work (SOW), it’s crucial to first understand the basics.
What is the Scope of Work in Software Development?
A software development scope of work (or statement of work when it’s part of a legal contract) is a detailed outline of all tasks involved in a software development project. It’s typically created between the software development vendor and the client.
Product teams, IT teams, marketing departments, and others can use the scope of work document (SOW) to ensure the project’s scope is well-thought-out and agreed upon before any work begins.
Content of a Software Development Scope of Work
A solid SOW should cover the following key areas:
- Objectives: This is the most important part. The objectives should clearly explain the reason behind the project. Identifying these early is critical, as changes in project objectives are one of the leading causes of project failure.
- Scope: This section specifies what deliverables are included and excluded from the project, such as technical details, documentation, and more.
- Terms of collaboration: This includes the project timeline, pricing, payments, and acceptance criteria. It defines what each party will contribute and the extent of their involvement.
- Deliverables: Whether it’s a web app or software, the SOW should specify the expected outcome. The level of detail here depends on the complexity of the project.
Who Writes the Scope of Work?
In most cases, the individual responsible for delivering the software development project—such as a project manager, startup founder, or CTO—will write the SOW.
However, for particularly complex projects, it’s a good idea to have a consultant with expertise in the field draft the SOW. This ensures all the necessary elements are included and the document is tailored to the project.
Regardless of who writes it, make sure all stakeholders are involved in the process. Their input is valuable and can help ensure the SOW is comprehensive. It’s also vital that the SOW is carefully reviewed by everyone involved before it’s finalized and distributed.
Why Is the Scope of Work Crucial in Software Development?
A well-crafted Scope of Work (SOW) document helps guide you and your outsourced team toward a shared goal. It acts as an effective project management tool that promotes trust and communication, ensuring that:
- The risk of miscommunication is minimized.
- Expectations are clearly defined.
- Everyone stays aligned with the project’s objectives.
- Clear guidelines are established (e.g., when changes need to be made, what the project milestones are, and a template for progress reports).
- Scope creep is prevented. (Scope creep occurs when the original project goals are altered or expanded, sometimes without the consent of the project manager or key stakeholders. In the worst cases, it can lead to delays or increased costs.)
How to Write a Scope of Work
An SOW is a critical business document, but drafting one can feel overwhelming, especially for those who haven’t done it before. Don’t worry, we’ve broken down the key components to help you create your first scope of work.
General Introduction
Start with basic information about the project and its goals. Provide enough context and references so that even those unfamiliar with the project can understand the requirements. It’s also helpful to include a brief description of the key roles (e.g., project managers, product owners, software developers).
Objective
Clearly define the project goals in this section. Make sure the reader understands the end product and its purpose. Try to answer questions like: What problem is the product solving? What is the product aiming to achieve?
Deliverables
Think beyond just the project objectives and outline what a successful project looks like. One common method is breaking down the project deliverables into smaller phases, known as a work breakdown structure (WBS). Be specific, but don’t get too technical, as the development team will handle how to achieve those deliverables. Consider these questions:
- Have you provided enough details to prevent scope creep?
- Have you thought about the key performance indicators (KPIs)? Are any missing?
- If you break down the project, what structure makes the most sense?
- Have you listed all the necessary tasks?
Project Timeline
The timeline is crucial for tracking progress from start to finish. You can visualize the project timeline using mind maps, flow charts, or tables. Plan out the entire project duration and break it into smaller phases. Assign start and completion dates, and specify expected deliverables at each stage. Also, define who will be responsible for each task and how missed deadlines will be handled.
Requirements
Functional Requirements
This section provides a detailed description of what you expect the software to do. For complex projects, it’s often more efficient to break down functional requirements by screen or user persona. Ensure you cover these points:
- Relevant hardware and software restrictions
- All application workflows
- Administrative duties and authority
- Sufficient information for implementing functionality
- User operations and functionality for every screen
The end result should be the software’s features.
Non-functional Requirements
Non-functional requirements are just as important as functional ones. These include:
- Data security and storage requirements
- Hardware limitations
- UX standards
- Acceptable downtime, if any
- Maximum data and user traffic the software should handle
Milestones
Milestones help track progress and measure how close the project is to completion. Each milestone should be attainable and measurable, affecting stakeholders outside the project team, like meetings with key stakeholders or reviewing current progress.
Assumptions
To keep everyone aligned, address any assumptions. These can become problems if not acknowledged early. Consider:
- What assumptions must be made before moving to the next project phase?
- What assumptions exist regarding the software’s expected capacity?
- Are there assumptions about maintenance and support from the developer after the software is launched?
Risks
Every project comes with risks. Ensure all stakeholders are involved in documenting these risks, which might include:
- Value risks: The chance the project won’t deliver sufficient value to internal stakeholders or external customers.
- Usability risks: Potential issues with the software’s usability.
- Feasibility risks: The risk of project failure due to technical or staffing issues.
Miscellaneous Details
The final section covers any relevant information that hasn’t been addressed in the previous sections. A well-written SOW considers all aspects of the project. Some examples include:
- Security standards
- Reporting requirements
- Software development team structure
- Post-project support
- Payment terms or payment models
- Liability limits and warranties
- Standard contract terms
- Project acceptance criteria
Best Practices When Writing a Scope of Work for a Software Development Process
Creating a Scope of Work (SOW) can seem overwhelming, but following these best practices will help you craft a clear, effective, and actionable document every time.
- Be Clear: Clarity is key. Make sure you define all terms and phrases so there’s no ambiguity. Who is responsible for each task? What are the deadlines? Clear definitions prevent miscommunication and ensure everyone is on the same page.
- Use Visuals: Incorporating visuals—such as diagrams, flow charts, or timelines—helps clarify the content and prevents misunderstandings. Visual references provide a tangible representation of your ideas, making it easier to convey complex processes and expectations.
- Be Transparent: Transparency is crucial. Always involve relevant stakeholders during the drafting process and before finalizing the document. Keep everyone informed, ensuring that all expectations are set clearly from the start and that all parties agree on the project direction.
- Be Agile: A flexible mindset is vital. Software development projects rarely follow a straight line, so be prepared to adjust deliverables or requirements as the project progresses. Each project is unique, and your SOW should reflect that by being adaptable to any necessary changes.
- Keep It Concise: While it’s important to be thorough, only include relevant details. A lengthy document with unnecessary information can make the project harder to manage. Focus on what truly matters, ensuring your SOW remains concise and to the point.
Last Note
A well-constructed software development scope of work is essential for keeping the project on track. It ensures that all participants are aligned with the project’s goals, helping you stay within budget while maximizing the project’s value. By adhering to best practices, you can confidently create a SOW that will guide the project toward successful completion.
