10 Indispensable Software Development KPIs That Every Project Leader Should Use

March 07, 2023
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Entrepreneurial intention regarding how to accomplish goals is essential for success in any endeavor. As a business owner, setting business goals based on Key Performance Indicators (KPIs) and making sure your team is committed to seeing them through guarantees the completion of the project and high-quality software development.

Defining these metrics early on in the process is crucial. These will help ensure that you and your team will finish the project on schedule and within budget. Using software metrics to gauge your team’s performance is a crucial first step in establishing and achieving your business’s objectives.

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When unnecessary delays or holdups occur, your key performance indicators might – or rather will – help you pinpoint the source of the issue. Your company can use these analytics to keep an eye on potential problems, learn from past mistakes, and focus on the most important aspects of your projects.

Key Performance Indicators for Software Development

Software development KPIs track key performance indicators in real-time and display them in simple data visualizations to help users discover valuable patterns. These metrics assist companies and help decision-makers define measurable goals that match their fundamental organizational objectives and measure their progress.


When users submit data or link the platform to their current technologies, magic happens! KPI tools capture real-time data, create engaging dashboards, and condense the entire reporting process into useful forms that provide users with a rapid overview of their observations.

KPIs are not just used for financial monitoring. Software development KPIs monitor product quality, supply chain networks, consumer satisfaction, and data analytics. Additionally, KPI notifications keep operations running smoothly and consistently. Although financial metrics are a common application of key performance indicators, they are far from being their sole possible use.

KPIs for software development are used for a wide variety of purposes, from keeping tabs on product quality and supply chain performance to gauging consumer happiness and offering valuable insights into the evolving market dynamics. Even while there are general standards for various sectors and industries, it is ultimately up to each business to choose which key performance indicators are most important to them. Even businesses that are in the same industry may be tracking a distinct set of KPIs because their goals may be vastly different.

What are the 10 Indispensable KPIs for Software Development?

Using appropriate software development KPIs is critical to the overall success of a project. By choosing metrics specific to your client’s needs, you can keep tabs on progress and ensure a smooth transition from the planning phase to the official release. Here is a list of the top ten key performance indicators (KPIs) for software developers to add to your dashboard.

1. Code Coverage

When developing software, code quality is vital, which is why code coverage is often used. This software development key performance indicator is fundamental to iterative development life cycles emphasizing test-driven development (TDD) and continuous delivery. This KPI for software development measures the percentage of source code that was run during testing. Having 100% code coverage is an unachievable goal, but a high coverage is typically desirable since it increases the likelihood that no defects will go unnoticed in your non-executable code.

2. Code Stability

One of the most difficult measures of success in software development is the code’s stability. You can either report the changes or follow them in the software’s source. Alternatively, you can stay updated on how often these shifts occur to guide your future steps.

3. Code Churn

The rate of change in a program’s source code is a common metric for evaluating its stability. Having to rewrite code often to suit new features indicates a high maintenance burden for your software system. This is very risky and should be avoided if at all possible.

4. Code Simplicity

The ease with which a code can be understood and modified is a general software development KPI. The ability to test and manage code quickly makes its simplicity important for its success. Since this is the case, it is preferable if your code is easy to understand. If this is not the case, there may be a need for additional time spent on debugging and troubleshooting.

This KPI for software development uses cyclomatic complexity, a mathematical assessment of the number of possible pathways through your code. Fewer pathways are preferable since they lead to less complicated code.

5. Cumulative Flow

One of the most important software development KPIs is the cumulative flow, which visually represents the progress of software tickets or tasks. Different phases, such as “authorized”, “backlog”, “acknowledged”, “in process”, etc., will be represented by different colors on the diagram. When you discover bottlenecks in the development process, you may use cumulative flows to stabilize your processes.

6. Flow Efficiency

A key performance indicator (KPI) in software engineering is the ratio of overall time spent working to the time spent on that piece of work.

It’s not always the case that if something is “in process”, there is a task being worked on. There might be lulls in productivity when your developers are stuck between jobs. As a result, this key performance indicator may be used to pinpoint cases in which “work in progress” was only a status and developers were unable to complete the task because of certain obstacles. In the end, this key performance indicator can help you monitor downtime and enhance productivity.

7. Cycle Time

The time it takes to complete a particular activity is measured in terms of its “cycle time”. When analyzing cycle time charts, software development teams may get a good sense of how productive they are. Not only can you put a number on your team’s performance, but you can also use this statistic to predict how fast your team will be able to complete future projects. In the same way, you may detect slowdowns in an otherwise efficient process.

8. Release Burndown

Software development KPI track how far along the product release process we are. This measure is important since it guides teams in the release management process. A release burndown chart is a useful tool for development teams in determining if they are falling behind, making progress, or staying on track. In addition, this KPI may provide you with concrete information that can be shared with your stakeholders in the timeframe within which they can anticipate a return after the release.

9. Sprint Burndown

When it comes to KPI for software development, sprint burning is the practice of keeping a record of the number of tasks performed throughout a sprint, a predetermined timeframe in which a certain number of tasks must be completed. This metric is one of the most important KPIs in software engineering since it monitors the progress made throughout sprints.

When the results of a sprint burndown fail to match expectations, you may use that information to help your team improve. Sprint burndown charts are often used by companies to depict data for their development teams, measuring time against narrative points. In this context, “story points” are used to estimate how long it will take to develop a certain feature in a piece of software.

10. Velocity

The velocity metric is akin to a sprint burndown in that it shows the amount of work a team can accomplish in a given period, but it differs in a few key respects. Whereas the latter measures just one aspect of a tale, velocity evaluates the whole thing.

Three sprints should be enough to get a good sense of your team’s average speed. Your team’s average velocity may be calculated by tracking the number of points your stories have at each sprint.


To guarantee project success, measure these software development KPIs at every step. These software development KPI metrics help you organize work quicker, better, and more efficiently. They also help you analyze how you can build software within the planned timeframes and budget, which is important for your client and you.

In addition to tracking key performance indicators (KPIs) in software engineering, it is crucial to staff up with competent programmers to guarantee the returns on investment (ROIs) you want. Nevertheless, it might be time-consuming to recruit highly skilled IT specialists. Therefore, you should go with Xperti. We will connect you with a hybrid workforce model to help you find the most qualified engineers, programmers, and software developers to create game-changing software solutions.

Drop us a line today to let us help you hire the best talent!

Also Read: 10 Most Commonly Faced Software Development Challenges

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Content Marketer | SEO writer | Tech enthusiast with a passion for writing about the latest trends and innovations in technology, software solutions, or recruiting the best and brightest talent in the tech industry.

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