When outsourcing software development, choosing the right project management methodology is one of the most critical decisions you’ll make. It directly impacts the quality of the final product, how quickly you can launch, your ability to adapt to changes, and the overall collaboration with your development partner.
In this article, we’ll compare the two most commonly used approaches: the traditional Waterfall model and the agile Scrum framework.
Waterfall – When Everything Is Defined Up Front
The Waterfall model, a traditional project management approach developed in the 1970s, breaks development into a series of sequential phases—such as requirements gathering, design, development, testing, and deployment. Each phase must be completed before moving on to the next. This linear, plan-driven process can be a significant drawback in today’s fast-paced and ever-changing environment—especially in software development.
A classic example of Waterfall’s limitations is the ambitious automated baggage handling system at Denver International Airport in the 1990s. The goal was to streamline baggage transport using cutting-edge automation. However, because the project was managed using a rigid, linear process, the team struggled to adapt to technical and operational challenges as they emerged. The result? Years of delays, massive cost overruns, and ultimately the project was scrapped altogether—with estimated losses exceeding $560 million.
This example highlights a fundamental issue with Waterfall: it’s poorly suited for complex or evolving projects. The inability to adapt quickly can lead to wasted resources, unmet expectations, and costly failures.
Waterfall can still be a good fit in certain scenarios – particularly when requirements are fixed, thoroughly documented, and unlikely to change, and when a formal, structured process is essential.
Waterfall can work well in industries like construction, manufacturing, or engineering—where projects follow a linear path and changes are costly. In software development, it’s typically suited for projects with strict regulatory requirements (such as government contracts) where the scope and budget are fixed from the outset. From a client’s perspective, Waterfall offers several key advantages:
- Clear estimates for budget, scope, and deadlines from the beginning
- Well-defined milestones and overall predictability throughout the project
- Easier monitoring and control of progress and deliverables
However, there are also disadvantages that can put a project at risk:
- Low flexibility — any changes usually result in delays and additional costs
- Limited client involvement during the development phase
- Testing happens late in the process, often revealing major issues only at the end
For complex, custom software projects—especially those that require continuous feedback or iterative improvements—Waterfall tends to be less effective and can lead to misalignment between the delivered solution and actual business needs.
Scrum – Agility That Moves Development Forward
Scrum is a modern, flexible approach that enables teams to deliver working software incrementally through short development cycles called sprints. This allows for frequent feedback, fast iterations, and the ability to adjust the direction of development based on market shifts or changing customer needs.
Unlike traditional methods, Scrum relies on just-in-time planning—details are defined shortly before implementation, not months in advance. This minimizes the risk of wasting time and budget on features that may turn out to be unnecessary. As a result, the team stays more adaptable and better aligned with real-world demands, which is crucial in dynamic environments.
- What Scrum means for you as a client:
Faster time to market – You don’t have to wait for the entire project to be finished. You can start working with an MVP early. - Continuous feedback and regular testing – Helps catch and fix issues sooner, leading to a higher-quality final product.
- High flexibility – Changes to requirements can be naturally and efficiently integrated as development progresses.
- Greater satisfaction – Active client involvement throughout the process ensures the end result closely matches your needs and expectations.
But Scrum isn’t perfect…
- Successful Scrum implementation requires a skilled, cross-functional team and a culture of open communication.
- Estimating overall time and cost can be more challenging than in fixed-scope models.
- Scrum’s flexibility can lead to scope creep—where the project grows without clear boundaries if not properly managed.
Area | Waterfall | Scrum |
Project Type | Stable, well-specified project with a fixed scope | Project with evolving requirements, product development |
First Output | At the end of the entire development process | After each sprint (e.g., every 2 weeks) |
Flexibility to Change | Low – changes are expensive and time-consuming | High – changes are incorporated continuously |
Feedback During Development | Limited or none | Ongoing, after each sprint |
Client Involvement | Minimal – mostly at the beginning and end of the project | Active throughout the entire development process |
Examples of Suitable Projects |
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Not Suitable When… |
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Risks | Risk of delays due to changing requirements | Requires an experienced team and open communication |
Final Note
Scrum is currently the most widespread agile methodology, used by over 60% of teams worldwide. Due to this popularity, many companies have adopted the term “agile” as a trendy label—often without a deep implementation of agile principles.
If you decide to adopt Scrum, you’ll make a strong choice by focusing on:
- Transparency: Open meetings, clear communication, and a realistic view into the development process.
- Team Culture: Self-organization, continuous improvement, and delivering real value.
Simply promising agility is not enough – look for a partner who truly lives it. Carefully reviewing practical examples and maintaining open communication are the best ways to verify whether a company genuinely embraces agile principles.
Tibor Petrik
The author of this article is a project manager who began his career with us as a tester. However, his passion for improving team collaboration and project workflows eventually led him to Scrum. Over the years, he has embraced the principles of agile project management and has become a key pillar of the team focused on developing B2B e-commerce solutions. Thanks to his deep understanding of B2B project flows and daily interactions with the needs of B2B clients, he’s able to effectively align team efforts with the real business goals of our customers.
