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The transformative global economy posed challenges to businesses in service management. In this computing age, the perceptual and operational edge of a certain business or organization manifested on the kind of technology it offers in the Service Management. Organizations have long recognized the importance of managing key resources such as people and information. Information has now moved to its rightful place as a key resource in the organization and therefore management of the same can be instituted by employing methodology. To keep their brand promise, technology has been used;The number of new entrants to every sectors of economy has grown significantly in recent years, and each firm strives to make their daily operation efficient in which demand for business software or application software getting higher and businesses or organizations opted to build or buy this software. Because of new entrants, it had offered opportunity to software developers to translate business processes into systems. This study investigates waste in the software development by application of Lean principles. Like any conventional projects, software becomes buggy and oftentimes it fails. Software failure is always attributed to the software engineering, not the incompetence of project managers, inadequacy of the people on the project, or lack of clear goal. The researchers' contentions are there wastes in the software development and serve as mechanism and evidence to why software fails. Software failure is not attributed to the software itself, it includes however the acceptance of the clients and end-users. Descriptive secondary data analysis, participant observation and Fishbone Analysis were the methodology used in the study. Wastes include unfinished or partially done work, extra features, relearning, handoffs, delays, task switching, and defects.

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