There is lot of challenges being faced by IT Firms. Be it the pressure on companies to deliver reliable software’s with lesser lead times, pressure to perform at par with market competitors, constant push to deliver quality software; there are several such challenges being faced by these firms. In this research paper, we want to focus our attention to small IT Firms and to understand their challenges by conducting a survey with the help of a structured questionnaire. The questionnaire is designed through the past problems highlighted in literature and a validated through responses from industry practitioners. The opinions are recorded and the relationship between the variables are analysed to give a better understanding of the present challenges in small IT Firms. The work presented in this paper is the first phase towards the development of a framework targeted towards SME IT firms for whom increased lead time is a primary bottleneck. In order to solve a problem, it is essential to understand it in depth and to analyse if there is any gap between the perceived bottles presented in the literature, and the actual problems faced in the industry. Hence, in order to bridge that gap, we have made an effort to structure out the questionnaire based on our findings and have tried to determine if the same can be validated through the responses acquired from the industry in practice.

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Every firm today strives to deliver its products on time. Delay in delivery not only affects the organizations goodwill but also can affect its client base. During our extensive literature survey, we found that the small firms frequently are not able to deliver their software on time. To understand this better, we performed a questionnaire survey, which revealed three major factors contributing to the delay. Over engineering, impediment to innovation and lack of essential documentation; were the four factors identified. These four factors were subjected to cross tabulation. As agile and lean development practices are implemented, the time spent on features which are not necessary is reduced, and documentation is also brought down to bare minimum. However, working on new ideas is not encouraged and is not taken in an open-minded setup. This work can be extended to determine the impact of these factors on different phases of software development.