The basics of key performance indicators
When you ask about software project KPIs is very likely you talk about key performance indicators for a software development team. These metrics cover the developers’ efficiency and can be assumed as a clue to the insight of project delivery date estimation. Note, this is not a question of the single developer’s efficiency but the efficiency of the team as a whole. After all, as a customer, you don’t need to know who exactly block or facilitate project progress. You need the job to be done within your deadlines.
Here are some software development KPI examples for outsourced projects we will discuss here:
Team velocity and its derivatives
Team velocity shows how much value a team adds to the product within the set milestones and represents the team’s ability to hit project milestones and deadlines. Here there are two derivatives. First, team velocity per each iteration. Second, cumulative team velocity.
Team velocity per each iteration
Here, you get a picture of your team performance within each iteration (or a milestone, if you choose). This kind of KPI metrics for software development is useful to understand at what stage blocks for the project have appeared and how efficiently the team has overcome them.
Cumulative team velocity
Another useful example of KPIs for software development projects is cycle time. Cycle time stands for how many man-hours it takes to bring the exact feature to production and deploy in the perfect state. It includes the main time during which this functionality was developed and extra time to debug and improve it.