Agile vs Waterfall: Which Software Development Method Is Best?

Agile and Waterfall are popular software development methods. Choosing the right model depends on project size, goals, flexibility, timelines and customer involvement.

Highlights

• 71% of companies use Agile over Waterfall for their project success.
• Agile projects are 28% more successful than traditional Waterfall projects.
• Only 11% of Waterfall projects are completed on time and within budget.

Co-Founder

Vandana Abrol

5 min read

An enthusiastic developer and skilled business management expert with over a decade of experience in the field

Software development has many moving parts, and choosing the right development methodology is one of the most important decisions a business can make. For decades, two main approaches have stood out: Agile and Waterfall. Each method has its strengths and limitations. The best choice depends on project goals, budget, timeframe, flexibility requirements, and communication structure.

This article takes a closer look at both methodologies. It compares how they work, when to use them, and which might be better in different situations. Businesses seeking custom software solutions often struggle with this decision. Understanding both approaches can help make the choice simpler.

What Is the Waterfall Method?

Waterfall is one of the oldest methods in software development. It follows a step-by-step process. Each stage is completed before the next one begins.

This model is known for its predictability. Once the scope and requirements are defined, the development proceeds without major changes. It is often used in industries like construction, manufacturing, or government-related software, where fixed processes and documentation are important. VersionOne data shows only 11% of Waterfall projects finish on time and budget.

Advantages of Waterfall

1. Clear structure: Everything is planned. This reduces confusion during the development process.
2. Defined timelines: Each phase has its schedule, making it easier to forecast delivery dates.
3. Easier for fixed-budget projects: Since everything is pre-decided, costs are generally easier to estimate.
4. Well-documented: All project requirements, stages, and deliverables are properly documented.

Limitations of Waterfall

1. Inflexible to change: If a mistake is found in the early stages, correcting it later can be costly and time-consuming.
2. Client feedback is limited: Clients usually see the end product only at the end of the cycle.
3. Longer delivery time: The final product may take longer to complete, especially for large projects.

What Is the Agile Method?

Agile was created as a response to the limitations of traditional approaches like Waterfall. It divides the project into small parts called “sprints.” Each sprint delivers a working part of the software. Agile encourages ongoing communication between developers and clients, and feedback is applied at each step.

Agile methods include Scrum, Kanban, and Extreme Programming (XP). These frameworks vary, but they share the same basic principles: flexibility, constant feedback, and short delivery cycles. Zippia's report says 71% of companies use Agile over Waterfall for their project success.

Advantages of Agile

1. Frequent updates: Software is delivered in parts, allowing the client to use and review each piece early.
2. Greater flexibility: Changes can be made as the project progresses without affecting the entire structure.
3. Team collaboration: Agile promotes constant interaction between all stakeholders.
4. Better risk management: Problems can be identified and resolved faster due to short development cycles.

Limitations of Agile

1. Less predictability: Since changes are allowed mid-project, it may be harder to estimate time and cost.
2. More demanding for clients: Clients need to be involved continuously and provide regular feedback.
3. Not ideal for small teams with limited resources: Agile requires skilled developers who can adapt quickly and work closely with clients.

PMI states Agile projects are 28% more successful compared to traditional Waterfall projects.

Comparing Agile and Waterfall in Detail (Point-wise)

Development Approach:

Agile: Works in small, iterative cycles called sprints.

Waterfall: Follows a step-by-step process from start to finish.

Client Involvement:

Agile: The Client stays involved throughout the project.

Waterfall: Client is mainly involved at the beginning (during requirement gathering).

Handling Changes:

Agile: Adapts well to new changes or feedback mid-project.

Waterfall: Difficult and expensive to make changes once development starts.

Project Delivery:

Agile: The Product is delivered in parts after each sprint.

Waterfall: The Full product is delivered only at the end of the project.

Budget and Cost Estimation:

Agile: Costs can change depending on project updates and scope changes.

Waterfall: Cost is fixed based on the initial plan.

Documentation:

Agile: Minimal documentation—only what is necessary.

Waterfall: Heavy documentation for every phase.

Testing:

Agile: Testing is done during every sprint.

Waterfall: Testing is done after the development phase is complete.

Best Use Cases:

Agile: Useful for evolving projects like apps, startups, or dynamic user-focused software.

Waterfall: Best for fixed-scope projects like enterprise systems, regulated industries, or government platforms.

Which Method Should You Choose?

There’s no one-size-fits-all method. The decision depends on the project's size, type, goals, and the people involved.

Choose Waterfall If:

1. The project scope is clear from the beginning.
2. You are working on a fixed timeline and budget.
3. The client is not available for regular interaction.
4. The industry demands complete documentation (e.g., healthcare or finance).

Choose Agile If:

1. The project requires flexibility.
2. User needs might change over time.
3. You want to launch the product in stages.
4. The client is ready to give continuous input and be involved throughout.

Development and Method Selection

When choosing a software development company, understanding their development approach is crucial. Whether they follow Agile or Waterfall can impact how well they match your business style and expectations.

Companies offering software development services often use Agile when clients need to adjust features during development. It works well for businesses that expect feedback from users or markets during the product's early stages. On the other hand, Waterfall is better when clients want a finished product delivered based on clearly written requirements.

If your business needs a solution that is built from scratch, involving unique workflows or specialized user roles, then custom software development is the way to go. And that makes it even more important to pick the right development method.

Agile-Waterfall Hybrid: A Middle Path

Some businesses combine both methods. The hybrid approach starts with a Waterfall-like planning phase to define goals and scope. Then it shifts to Agile for development and delivery. This can give the structure of a Waterfall with the flexibility of Agile.

For example, a custom software development company may define initial goals and modules using Waterfall but deliver them through Agile sprints. This gives clients a better overview while still allowing feedback and changes.

Real-World Examples

1. Waterfall Example: A government portal for tax filing must meet legal compliance and fixed deadlines. Every feature is listed, documented, and scheduled. Waterfall fits this need perfectly.
2. Agile Example: A mobile application for booking gym sessions where user feedback is essential. As the product rolls out, developers make adjustments based on user reviews. Agile allows this ongoing flexibility.

Factors to Consider Before Choosing

Before deciding on Agile or Waterfall, consider the following:

1. Project Clarity
   Do you have a clear idea of what you need? If yes, Waterfall might be more suitable. If your needs are likely to evolve, go with Agile.
2. Client Availability
   Agile requires constant feedback. If your team or client can't commit time regularly, Waterfall may be better.
3. Budget and Timeline
   Waterfall projects are easier to price. Agile projects may change in scope, affecting cost and delivery date.
4. Team Skills
   Agile requires close communication and fast decisions. The team must be experienced in handling changing requirements.
5. Risk Tolerance
   Agile handles uncertainty better. Waterfall works well when every detail is known in advance.

Final Words

The question "Which software development method is best?" doesn’t have one single answer. Both Agile and Waterfall have their place in the world of software development.

Agile is flexible and better for situations where quick changes are needed. Waterfall is structured and works well for fixed requirements. Businesses looking for custom software development should first analyze their needs and then discuss them with the development team.

In the end, choosing the right method depends on what you want to build, how much time and money you can invest, and how involved you want to be during the development process.

Whichever path you choose, having a good understanding of Agile and Waterfall will help you work more confidently with your custom software development company and get the most out of your software development services.

Choosing Between Agile and Waterfall with Digittrix

When it comes to building custom software, selecting the right development method can make a big difference. At Digittrix, we help businesses choose between Agile and Waterfall models based on their specific project needs and goals. Each method offers unique advantages, and understanding which one suits your software project best is key to successful development.

Whether your project needs the flexibility of Agile or the structured planning of Waterfall, our team provides the right software development services to match. From custom software development to long-term software development solutions, we guide you through the entire process.

With 14 years of experience, Digittrix has supported various industries with both Agile and Waterfall practices. If you're not sure which model fits your needs, our experts will help you decide by analyzing your timeline, budget, project type, and more.

Need help with a custom software project? Talk to our technical managers for guidance on choosing the best approach. Call us at +91 8727000867 or email digittrix@gmail.com to schedule your consultation today.