Howdy Logo
Howdy Expert

By Howdy.com

Hire the Top 1% of Developers in Latin America.

Howdy specializes in nearshore talent sourcing, helping U.S.-based companies direct hire from Latin America. We provide multi-national logistics, support, and compliance assistance. Our vetting process delivers the highest quality talent in software development, operations, finance, HR, marketing, sales, and customer support for a 98% retention rate.

Content

    Cost of delay (CoD) is a metric measuring the financial impact of completing a project sooner rather than later.

    Think of it as the money you could lose by delaying the launch of a product or feature.

    Understanding CoD can help you see how your decisions might impact your bottom line.

    In this article, we'll discuss three expensive costs of delay you might not have considered.

  1. Three Unexpected Costs
  2. In the software development world, the saying "time is money" rings especially true. Each day that your software isn’t on the market is a day that it’s not generating revenue.

    When it comes to late software projects, some obvious costs of delay stand out from others — mainly lost revenue and extended labor costs. However, many costs of delay may not be immediately apparent but can nevertheless have a significant impact on your project's outcome.

  3. Marketing Costs
  4. Imagine spending tons of resources on marketing campaigns only to find certain advertised features aren’t ready. Delays in feature delivery disrupt marketing timelines and can lead to wasted resources and missed opportunities.

  5. Customer Dissatisfaction
  6. The end consumer being less than satisfied with your final product can lead to a loss of trust and quickly damage your business's reputation. This can have long-term consequences for customer loyalty and brand perception. Customers might request refunds or decide not to renew contracts because they feel let down or believe they can’t trust your brand anymore.

  7. Lost Stakeholder Confidence
  8. Delays can strain relationships with stakeholders such as investors, clients, suppliers, and regulatory bodies. Trust and confidence rapidly erode if deadlines are repeatedly missed, leading to rocky relationships and potential loss of support or funding.

  9. Bottom Line
  10. How do you minimize the costs of delay and the impact it has on your project? Effective project planning, continuous communication, risk management, agile development practices, a focus on quality, and efficient resource allocation are all key.

    Learn more about how to implement best practices into your project launches and how to maximize customer retention with a crew of professionals. Book a demo with Howdy and build a reliable development team that can implement strategies effectively.

The Hidden Costs of Delay

The price of late project completion might be higher than you think.

Updated on: Apr 23, 2024
Published on: Feb 13, 2024

Share on LinkedInShare on TwitterShare on Facebook
The Hidden Costs of Delay featured image

Cost of delay (CoD) is a metric measuring the financial impact of completing a project sooner rather than later.

Think of it as the money you could lose by delaying the launch of a product or feature.

Understanding CoD can help you see how your decisions might impact your bottom line.

In this article, we'll discuss three expensive costs of delay you might not have considered.

Three Unexpected Costs

In the software development world, the saying "time is money" rings especially true. Each day that your software isn’t on the market is a day that it’s not generating revenue.

When it comes to late software projects, some obvious costs of delay stand out from others — mainly lost revenue and extended labor costs. However, many costs of delay may not be immediately apparent but can nevertheless have a significant impact on your project's outcome.

Marketing Costs

Imagine spending tons of resources on marketing campaigns only to find certain advertised features aren’t ready. Delays in feature delivery disrupt marketing timelines and can lead to wasted resources and missed opportunities.

Customer Dissatisfaction

The end consumer being less than satisfied with your final product can lead to a loss of trust and quickly damage your business's reputation. This can have long-term consequences for customer loyalty and brand perception. Customers might request refunds or decide not to renew contracts because they feel let down or believe they can’t trust your brand anymore.

Lost Stakeholder Confidence

Delays can strain relationships with stakeholders such as investors, clients, suppliers, and regulatory bodies. Trust and confidence rapidly erode if deadlines are repeatedly missed, leading to rocky relationships and potential loss of support or funding.

Bottom Line

How do you minimize the costs of delay and the impact it has on your project? Effective project planning, continuous communication, risk management, agile development practices, a focus on quality, and efficient resource allocation are all key.

Learn more about how to implement best practices into your project launches and how to maximize customer retention with a crew of professionals. Book a demo with Howdy and build a reliable development team that can implement strategies effectively.

What to read next