8 common software development methodologies & how to choose

A software development methodology decides how a project team plans, builds, tests and delivers a product. Each methodology has its own approach and fits different requirements and project conditions. This article introduces 8 common methodologies, with diagrams, project examples and tips to choose the right one for each type of project.

1. 8 common software development methodologies

The table below gives a quick comparison of 8 approaches before we look at each one in detail.

Waterfall

What it is: Waterfall is a sequential model. Each phase must be complete before the next phase begins.

How it works: The project goes through these steps: requirements gathering, design, development, testing, deployment and maintenance. Each step ends with an approved document, which becomes the input for the next step.

The Waterfall model has 6 sequential phases, from requirements gathering to maintenance

Pros:

• Clear scope, cost and timeline from the start
• Complete documents that are easy to hand over and review
• Easy to manage for teams with little experience in flexible methods

Cons:

• Inability to accommodate evolving functional requirements post-kickoff
• Late-stage stakeholder visibility, restricting direct insight into working increments until deployment
• High remediation costs for structural defects identified late in validation cycles

Tools that support each methodology: Microsoft Project, Smartsheet, Jira (Gantt/timeline view), Confluence for documents.

Example: An internal records management system for a government agency, with requirements and budget approved before the project starts.

V-model

What it is: The V-model (Verification and Validation model) is an extension of Waterfall. Extending traditional linear approaches, the V-Model pairs every system elaboration step with a parallel verification stage, ensuring test suites are architected concurrently with functional requirements.

How it works: The left side of the V covers analysis and design, from requirements to detailed design. The right side covers the matching test levels: unit test, integration test, system test and acceptance test. The team writes the test plan as soon as it defines the requirements.

The V-model, where each design step has a matching test level

Pros:

• Early test planning gives strong control over quality
• Clear traceability between requirements and test cases
• Suitable for industries that must prove regulatory compliance

Cons:

• Low flexibility when requirements change
• Heavy documentation overhead
• No early working version for users

Tools that support each methodology: Jira with Xray or Zephyr, TestRail, IBM Engineering Requirements Management DOORS.

Example: Control software for a medical devices.

Spiral

What it is: Spiral is an iterative model that moves in cycles. It combines the sequential steps of Waterfall with a risk analysis in each cycle.

How it works: Operating through iterative spirals, each cycle encompasses four structured phases - objective determination, risk mitigation, software engineering, and next-phase planning - gradually maturing system capabilities with every rotation.

The Spiral model repeats 4 steps, with a risk review in each cycle

Pros:

• Good risk control for large and complex projects
• Features can be added or changed after each cycle
• Clients see the product early through prototypes

Cons:

• High cost because the project needs risk analysis experts
• Hard to estimate the completion date
• Not suitable for small, low-budget projects

Tools that support each methodology: Jira, Microsoft Project, a risk register in Confluence or Excel.

Example: A new core banking system for a bank, which needs a security and integration risk review before each expansion phase.

Prototype model

What it is: The Prototype model is a software development methodology where engineering early interactive prototypes enables end-users to evaluate functional flows and provide immediate feedback prior to full-scale codebase execution.

How it works: The project team collects initial requirements, builds a prototype (from wireframes to a clickable version) and then gets user feedback. The team improves the prototype over several rounds until the requirements are clear. After that, the team starts to build the real product.

In the Prototype model, the team improves the prototype until users approve it, and then builds the real product

Pros:

• Unclear requirements become clear from the start
• Users take part early, so the product better meets their needs
• Lower risk of rework on the interface and user flows

Cons:

• Can take a long time if the number of review rounds is not under control
• Clients may think the prototype is an almost finished product
• The prototype code is often not reusable

Tools that support each methodology: Figma, Adobe XD, Axure RP, ProtoPie.

Example: A booking app for a chain of clinics, where the team needs to confirm the booking flow with patients and staff before coding.

Agile (Scrum, Kanban and other frameworks)

What it is: Built upon short execution cycles, the Agile philosophy prioritizes functional software delivery, active client collaboration, and rapid adaptation to shifting market dynamics over rigid documentation. Scrum, Kanban, XP and SAFe are common frameworks for Agile.

How it works: In Scrum, the team divides work into sprints of a fixed length, up to one month. Each sprint includes sprint planning, daily scrums, a sprint review and a sprint retrospective, and ends with a usable part of the product.

The Scrum sprint cycle, from the product backlog and sprint planning to the sprint review and retrospective

Pros:

• Easy to adapt when requirements or the market change
• Clients see results after each sprint
• Problems appear early thanks to regular feedback

Cons:

• Complexity in baselining long-term budgetary and timeline bounds upfront
• Requirement for sustained, active involvement from Product Owners and executive sponsors
• Vulnerability to technical documentation debt without strict team governance

Tools that support each methodology: Jira, Azure DevOps Boards, Trello, ClickUp, Miro for retrospectives.

Example: A digital banking app that releases new features every 2 weeks, based on user feedback and business needs.

Đặt button: Looking for an Engineering Team Experienced in Agile Delivery? Explore TMA's software development services.

Lean

What it is: Lean software development applies lean manufacturing principles to software. It focuses on the removal of waste and fast delivery of value to users.

How it works: Engineering teams deploy a Minimum Viable Product (MVP) to capture empirical usage metrics, continuously refining functionality through Build - Measure - Learn feedback loops to systematically eliminate non-value-adding features and operational inertia.

The Build – Measure – Learn cycle in Lean

Pros:

• Fast launch and lower cost in the early stage
• Decisions based on real user data
• Lower risk of investment in features that nobody uses

Cons:

• Depends heavily on the team's ability to make quick decisions
• Hard to apply to large systems with many constraints
• Documents may be incomplete if the team only focuses on speed

Tools that support each methodology: Trello or Jira (Kanban board), Google Analytics, Mixpanel, Hotjar to track user behavior.

Example: TMA worked with an EdTech startup in Australia from discovery workshops and a PoC to the commercial launch. The product includes CourseFinder, which helps learners find suitable courses, and Coursify, which helps providers create courses with AI. The startup moved from an idea to a live commercial platform with one partner throughout.

DevOps

What it is: DevOps is an enterprise operational philosophy that unifies software engineering (Development) with IT infrastructure management (Operations), leveraging continuous automation to accelerate release velocity while safeguarding system resilience.

How it works: Source code updates undergo automated compilation, testing, security auditing, and deployment via CI/CD pipelines, with continuous telemetry feeding operational insights back into development backlogs.

The DevOps cycle automates work from planning, coding and testing to deployment and monitoring

Pros:

• Unmatched deployment frequency coupled with drastically reduced release cycle times
• Enhanced system stability and lower failure rates driven by automated regression testing
• Rapid Mean-Time-To-Recovery (MTTR) during production anomalies

Cons:

• Substantial capital investment required for automated tooling, cloud infrastructure, and DevSecOps talent
• Cultural resistance when transitioning away from legacy, siloed organizational structures
• High technical complexity when integrating tightly coupled, monolithic legacy environments

Tools that support each methodology: GitLab CI, GitHub Actions, Jenkins, Docker, Kubernetes, Terraform, Prometheus, Grafana.

Example: For a Fortune 500 health insurance company in the US, TMA set up a dedicated team of engineers to build and maintain a pipeline that releases the latest code to many environments. The team also managed configuration and optimized resources on the public cloud.

Fixed-price model

What it is: Fixed-Price is a commercial engagement model where functional scope, financial expenditure, and delivery schedules are established prior to project execution, often paired with Waterfall planning or fixed-scope Agile iterations.

How it works: Stakeholders collaboratively define exhaustive functional specifications, binding the agreement to fixed milestone-based disbursements; subsequent scope adjustments mandate formal Change Request (CR) evaluations and separate commercial estimates.

The Fixed-price model sets the scope and price at the start, and all changes go through a change request

Pros:

• Total financial predictability and strict fiscal governance for enterprise buyers
• Complete transfer of operational cost-overrun risks to the delivery partner
• Streamlined internal CapEx sign-off driven by firm baseline figures

Cons:

• Acute rigidity when responding to mid-project strategic pivots or market shifts
• Extended upfront discovery requirements prior to engineering kickoff
• Premium contract pricing as vendors incorporate contingency buffers for financial risk

Tools that support each methodology: Jira or Microsoft Project to track milestones, Confluence for specifications, a change request management tool.

Example: A company website with a customer sign-up portal, a clear feature list and a fixed launch date.

2. How to choose the right methodology for your project

No single engineering methodology universally fits every enterprise scenario. Global research from the Project Management Institute (PMI) indicates that leading organizations choose execution frameworks tailored specifically to unique project characteristics, increasingly favoring hybrid approaches.

Requirement stability

Requirement stability serves as the primary evaluation criterion. When functional requirements are baseline-approved and subject to strict regulatory governance, sequential models ensure robust schedule and budgetary control. Conversely, when market conditions demand rapid adaptation, Agile Sprints enable dynamic scope realignment. When UI/UX flows remain ambiguous, interactive prototyping mitigates down-stream engineering risks.

Project size, budget and risk

Large projects with many technical, security or integration risks need a risk review before each phase. In contrast, small projects with a limited budget need a quick launch to test the idea before further investment. A fixed budget that cannot change is also a reason to consider a fixed-price model.

Compliance and quality requirements

Highly regulated industries such as healthcare and finance require complete documents, traceability between requirements and tests, and evidence for each audit. In this case, the process needs structured testing at every level, from unit tests to acceptance tests. Businesses can also work with independent software testing services to increase reliability.

Team setup and client involvement

Team setup has a direct impact on the choice of methodology. In-house teams in one location should use Scrum with daily meetings. Offshore or distributed teams across time zones need clear communication processes, complete documents and shared tracking tools. It is also important to check whether the client can join a review after each sprint.

Combining methodologies (hybrid approaches)

Many projects do not use one pure methodology. Instead, they combine several methods. For example, a team uses Waterfall to plan the project and approve the budget, and then switches to Agile for development. Another common mix is Agile + DevOps: Agile manages the sprint-based way of working, while DevOps automates testing and deployment. According to PMI, more and more organizations now use hybrid approaches.

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Unsure Which Engineering Methodology Fits Your Architecture? Schedule an Assessment with TMA Experts.

3. Frequently asked questions about software development methodologies

Is Agile better than Waterfall?

No methodology is universally superior. Agile excels in dynamic environments requiring rapid market iteration and continuous stakeholder feedback. Waterfall remains optimal for initiatives defined by fixed scope baselines, pre-allocated CapEx budgets, and stringent compliance documentation. Methodology selection must align with architectural requirements rather than industry trends.

Is Scrum a methodology or a framework?

Scrum is a framework, not a complete methodology. It only defines the core roles, events and artifacts, and the team chooses its own specific techniques.

Which methodology is best for offshore software development?

For offshore projects, Agile combined with DevOps is a common choice when the client can join a review after each sprint. This approach lets the client see results often, even when the two sides work in different time zones. If the scope is clear and the client has little time to take part, a fixed-price model with fixed delivery milestones may be a better fit. Whatever the choice, an offshore project still needs clear communication channels, shared working hours and complete documents.

Each software engineering methodology delivers distinct operational advantages. Waterfall and the V-Model ensure strict governance for fixed-scope initiatives, Spiral mitigates high-risk complexity, the Prototype model aligns user expectations, Agile and Lean drive rapid adaptation, and DevOps enables continuous, zero-downtime releases.

If your organization is evaluating the optimal engineering methodology for an upcoming enterprise initiative, schedule a technical consultation with TMA solutions architects to evaluate your requirements and establish a tailored engineering roadmap.

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