The Hidden Risks Of Taking Over Existing Software Projects

Most businesses think that handing over a software project to a new vendor is a simple task as the system is already built with all the features there. However, experienced software development companies, including us, often recommend rebuilding the system.

Risks scale in software project takeover

But, Why?

It’s not to ignore what’s already there but working with a broken or unclear code causes more problems later (potentially going way over your project budget too).

Here are more detailed reasons to the risks of a software project takeover:

1. Lack of Documentation and Knowledge Transfer

Most companies have very little to no documentation regarding their software project. This isn’t a major issue if the original team is still around to explain the development when needed.

However, when that team is no longer available or you want to engage with a new vendor to take over the system without rebuilding it, things get trickier. As the new vendor did not build the system, nor was it a part of the decisions, they must figure out the system by studying the code, line by line, on their own.

Without a proper handover or technical notes, they need to test things and trace how different parts connect to understand the purpose behind each feature.

This ends up taking more time, and even simple tasks end up taking longer than expected.

2. Legacy or Poor Code Quality

Sometimes the software being handed over is old, or it may have been rushed or poorly written. Either way, the new vendor will end up working with code that is hard to understand, hard to update, and easy to break.

Some features might have been built in a way that only the original developer understood. Others may be filled with quick fixes or workarounds that are not easy to maintain.

This creates problems for the new team. They can’t just continue building new features using the existing code. They have to check if the existing parts are stable and scalable. And they often need to spend time cleaning up or rewriting parts of the system just to make it work.

3. Unknown Bugs and Hidden Issues

There may be bugs in the code that haven’t been reported or features that were only halfway done. These issues are often not documented or visible at first.

Certain features may suddenly stop working. Unexpected errors show up. Some parts of the system behave strangely. The new vendor has no idea why because these issues were never documented and may have been buried deep in the code.

At this point, the new team has to pause everything and test the system thoroughly to find out what’s broken, what’s unfinished, and what might break later.

This slows down the actual work they were hired to do and drags the project time and budget as well.

4. Mismatch In Tech Stack or Tools

The tools and programming languages used in the old system might be unfamiliar to the new team. When taking over the project, they may need more time to study how those tools work, or in some cases, even bring in specialists who know how to handle them.

This becomes a challenge when the goal is to move fast or improve the system. Instead of focusing on new features, the vendor now needs to spend time understanding and adjusting to the tools used in the original build.

This is another reason why rebuilding the entire system is more time-saving and cost-saving as well. By doing so, developers can use the programming languages and tools they specialize in. This allows them to build a solution they fully understand from the inside out, which makes future development faster, safer, and more manageable.

5. Integration Dependencies

Most software systems rely on third-party services, plugins, or external APIs to handle logics like payments, notifications, data sync, or logins. These integrations are often added over time, and in many cases, they are not well documented.

When a new vendor takes over the system, they may not know which services are connected, how they work, or what happens if one of them fails. Even small changes can cause parts of the system to stop working if the integrations aren’t properly understood.

Some third-party services may also be outdated, discontinued, or unstable. If these tools break or behave unpredictably, the new team has to spend time troubleshooting to replace weak or outdated integrations with better ones.

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Read more about the role of API development in modern web development.

6. Security and Compliance Concerns

When a vendor is asked to take over an existing system, one of the first things they need to assess is whether it meets basic security and compliance standards. In many cases, it doesn’t.

The system might be using weak encryption, missing important security patches, or storing sensitive data in risky ways. In some cases, access control might be poorly handled, or no record of how data is managed at all.

Taking over a system like this puts the new vendor in a difficult position. They’re expected to maintain and improve something they didn’t build while being held responsible if anything goes wrong. It’s a risk most vendors are not willing to take lightly, especially when there’s no knowledge of how data is managed or protected.

Yelllow Abstract Design

Read more about the 14 best secure coding practices in software development.

Conclusion

Getting a new software development company as your vendor to take over the existing system may seem like the more budget-friendly option. But in reality, this is often what burns a hole in your pocket if you choose an inexperienced software vendor.

The time spent trying to understand old code, fixing hidden issues, dealing with outdated technology stacks or patching security gaps adds up to our budget quickly and unpredictably. It also stretched the project timeline far beyond what was planned.

That’s why many experienced vendors rather rebuild. At the end of the day, it’s not about doing more work, but it’s all about doing the right work, with the right team, from the start.

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