Agile Vs Waterfall: Which is Best for You?

The two main approaches for managing a custom software development project are Agile and Waterfall. Both these software development methodologies are sophisticated and easy to use. They help software developers better organize the agile project with a well-structured flow. However, the selection of the project management approach depends on the project’s type and its team. 

In this article, we have tried to cover every aspect of Waterfall and Agile methodologies along with a detailed comparison to help you make an informed decision.

1. What is Agile Methodology?

Agile is one of the most commonly used software development methodologies that help developers manage software projects by dividing them into multiple stages. It involves continuous improvement and iteration at every stage of the software development lifecycle constantly collaborating with the stakeholders.

Agile methodology promotes a disciplined process of project management that encourages frequent adaptation and inspection, self-organization and accountability. It also fosters a leadership philosophy that strengthens teamwork, incorporates best engineering practices, and a business approach that coordinates with the customer’s requirements. 

Agile is a development methodology referring to the development process that regulates the Agile Manifesto concept. The Manifesto reflects the approach of fourteen leading software development professionals who created it, specifying what practices will work for software development and what will not.

Agile methodology begins with customers explaining how they want the end product, how it will be used, and what problems the software product solves. Once the software development teams start the work, they proceed with project planning, executing, and evaluating the software.

1.1 Advantages of Agile

Agile is one of the most popular methodologies for project management because of its revolutionary nature and flexibility. Agile development benefits project managers by making their tasks easier and allowing them to take control over the agile projects. In addition, some key benefits of the Agile approach include: 

1. Customer Satisfaction

In the Agile method, there is constant customer involvement to make decisions regarding the project and its modules which eventually leads to better customer retention. The traditional waterfall model only involved the client in the planning phase which usually affected the adaptability of the complete project. Therefore, keeping the client in the loop and making changes as per their feedback can ensure valuable output. Besides, it also helps in reducing the go-to-market timeline. 

2. Increased Flexibility

If the Agile methodology is truly implemented in the entire development team, then it empowers them and provides unparalleled flexibility. In Agile, the programming team works on smaller modules and gets constant feedback about them from the product owner. As Agile divides the project into sprints, the changes from the owner are manageable and quick to deliver. Because of this unparalleled flexibility, the majority of organizations prefer to use the Agile approach in their project.

3. Improved Project Predictability

With increased visibility, Agile offers features that help software developers to identify and predict risks more effectively. It aims to ensure smooth project operation without any errors. Programmers combine the Scrum method with Agile, utilizing burndown charts & sprint backlogs to increase project visibility, predict performance, and plan accordingly.

4. Constant Improvement

By following the core principle of the Agile Manifesto, this methodology operates in iterations. Each sprint created in the Agile method is aimed to be an improvement over the previous one and to resolve the errors from the previous sprint. Besides, the open culture of Agile methodology encourages team members to collaborate with the client, exchanging ideas to improve the project at every stage of its development.

5. More Relevant Metrics

The metrics that the Agile development experts use to estimate the cost and time of the project or its performance are more accurate than the traditional waterfall method. Agile is a method that emphasizes creating results and optimizing software performance. It even produces metrics like cycle time and lead time, that help the project manager evaluate team performance.

1.2 Disadvantages of Agile

Despite its benefits, Agile is not for everyone. Therefore, it is necessary to know its limitations, which are as follows –

1. Greater Demands on Clients and Developers

Agile teams follow a principle that requires close collaboration between the clients & developers with extensive involvement from the customer’s side. Besides this being a rewarding approach, it requires a huge commitment from both sides till the end of the project. Any lack of participation from either the client or developer can impact the project’s outcomes and quality, eventually affecting its success rate.

2. Software Project Easily Gets Off-track

The project that follows the Agile method starts with minimal planning and assumes that the client’s requirements will keep on changing. This limits the Agile model and then if the customer’s feedback is not clear, it makes the developer focus on the wrong module. Eventually, it can off-track the project development process.

3. Lack of Comprehensive Documentation 

The documentation in the Agile method is limited as the requirements of the custom software project are clarified during the time of its development. This becomes a disadvantage for new team members who join after the start of the development process. They miss out on details about a few features or how the software functionalities should perform. This creates difficulties and misunderstandings for the programmers.

1.3 Agile Development Cycle

The Agile development method follows a specific set of distinct phases for custom software development. These project phases are flexible and always keep on evolving. They are –

1. Plan

Planning is the initial stage of the Agile software development life cycle that is carried out by the development professionals after ensuring that the client’s project idea is feasible and viable. The software developers then identify the required features of the project and break down the project creation idea into smaller phases.

2. Gather Requirements

After understanding the requirements of the client’s project, the project manager, programmers, and stakeholders go through various aspects to understand the project’s target audience. They identify the user requirements and gather information on how the product will be used.

3. Design

The Software designers analyze the client’s requirements and design suitable software that fulfills their needs. They consider various design ideas to craft the system UI in a way that captures users’ attention. Designers also seek input from the testing team which helps strategize the process. 

4. Development

The development phase is where the real work begins. Adopting an extreme programming approach, the development phase is all about creating the system architecture and its features as per the customers’ expectations. Then in the Agile development process, the testing of developed features is conducted and iterations are scheduled for deployment. When the development process starts, the iteration is 0 as there are no features developed at the initial stage. Basically, the iterations in Agile development lay a foundation for various tasks like preparing the environment for creating the software system, finalizing the project contract, and funding.

5. Testing

After the development process, the code is tested to check if the entire product is as per the requirements of the customers and if it can solve the customer’s needs. The testing phase consists of different types of processes that span the project, such as system testing, user acceptance testing, unit testing, and integration testing. Agile performs testing concurrently with development whereas in waterfall, testing occurs after the development phase.

6. Deployment

The deployment process is carried out after successful product testing results. The product is delivered to the customers for use. Once customers start using the product, they might face some problems that need to be resolved by the custom software development team.

1.4 Principles of Agile Development

The Agile manifesto principles are the guidelines for the programmers on how they can execute the development process with agility. There are 12 such core principles and they are – 

1. Software developers should prioritize customer satisfaction and provide continuous delivery of the software.
2. Changing requirements at the later stage of project development must be welcomed since the Agile approach can effectively handle these changes, providing a competitive advantage to the customer.
3. The programmers must coordinate work with the client daily for the success of the development project.
4. Rapid delivery of working software is a must, whether on a weekly or monthly basis.
5. Project creation around motivated individuals by giving them the required environment and support to develop the software.
6. Employ effective methodologies to communicate project-related information and engage in face-to-face conversations with team members.
7. The working software ensures the progress of the project.
8. The programmers, users, and sponsors involved in the Agile project should strive to maintain a consistent pace.
9. Maintain continuous technical quality to enhance agility and overall performance.
10. The best requirements, architecture, and design come from the self-organizing development team.
11. Simplicity can maximize the work.
12. The development teams reflect on the ways to become more effective and then adjust accordingly at regular intervals.

1.5 When to Use Agile Methodology

When it comes to using Agile methodology in projects, many factors go into consideration. Here are some of the major aspects that help the developer decide when to use the Agile method – 

1. Lenient Processes

If the client’s organization doesn’t follow a strict process and gives programmers work flexibility, then Agile is the best methodology to use for their projects.

2. Few Initial Requirements

For a project with fewer initial requirements and doesn’t require strict regulations, Agile can be beneficial.

3. Flexible Timeline

For the short-time delivery of different-size projects, Agile is the most appropriate choice.

4. Greenfield Product

When the client wants to have something innovative that currently doesn’t exist, then Agile software development methodology can serve the project very well with unique features.

5. Budget Flexibility

Agile methodology can be used when the product team is unsure about what needs to be built or they still need to find it out throughout the project development process. This approach enables software professionals to develop more features in less time, providing flexibility in the custom software development process. This makes the software engineers take advantage of the opportunities that the project has to offer. Besides, Agile enables the programmers to consider the client process and satisfy their needs by introducing a product mindset.

1.6 Project Management Tools of Agile

Some of the top Agile project management tools for both small and large size businesses are – 

1. Wrike

Wrike is an effective project management tool that enables the Agile development team to make instant changes to reduce costs and boost revenue. The project management institute uses Wrike as it is an ideal framework for connecting and centralizing multiple projects and boosting the team’s efficiency. It offers full visibility and control of various development projects and tasks to all the team members.

2. ProofHub

ProofHub is one of the most used Agile project management tools with a smart interface and rich features. It enables custom software development experts to share ideas, start discussions, and compile documents, ensuring rapid application development. It is project management software that comes with integrated tools and features that can help create successful projects. Additionally, it allows the use of techniques like  CPM (Critical Path Method) and GTD ( Getting Things Done ) to manage development projects.

3. Asana

Asana is a cloud-based project management system and a task management tool that allows the project manager to plan, organize, and track the progress of the projects. From boards to timelines, Asana offers all the features necessary for a team. Asana enables tracking launches, iterations, sprint plans, and communication with team members.

4. Smartsheet

Smartsheet is a tool that facilitates project collaboration and different tasks like tracking marketing campaigns, managing operations, and planning events. It comes with various solutions for different industries and roles. Besides, it has open and free collaboration and unlimited team creation features.

5. Active Collab

Active Collab is another project management tool that was devised as the perfect solution to provide business value. It allows the software team to determine what users can see and access. This ensures that users are well-informed and involved in the development process. It enables the programmers to do the planning, share files, track expenses, track time, discuss important topics, and brainstorm for multiple projects.

2. What is Waterfall Methodology?

The Waterfall is a software development methodology that follows a stepped development approach with a prescribed set of dependencies and activities. The main feature of this method is that at each step of the development process, approval from the stakeholders is essential before the custom software development team moves to the next phase. This is why it is known as a Waterfall Methodology.

The Waterfall method is incremental and highly sequential, divided into seven phases: conception, initiation & analysis, designing, coding, testing, and implementation. Waterfall is a traditional methodology that follows a linear approach to developing valuable software. It goes through strict planning and then the plan is performed step by step in the process. Software development companies that strictly follow the hierarchical structure, use the Waterfall methodology.

The process begins with experts gathering data from the client and ends when the product is delivered. Each event in the process is represented at a distinct stage. And the developer can start working on the next stage only after finishing the previous one.

2.1 Advantages of Waterfall

The Waterfall method is beneficial when the requirements are clear, well-documented, and static. It is more useful when the technology is mature and easily understandable. Besides this, some of the major advantages of the Waterfall method are – 

1. Transfers Information Well

The Waterfall is a highly methodical approach that prioritizes a clear transfer of information at every step of the development process. When a custom software development company applies the Waterfall method to its process, at every new step, either a new group of people will be involved or the new changes will be documented for the team to quickly catch up.

2. Determines End-goal at Initial Stage

One of the main characteristics of the Waterfall approach is committing to the end of the goal or the delivery of the project at the beginning. This means that the software development company commits to the client that they will provide a desired product at the very beginning. It makes the team aware of the goal at the initial stage, which makes them work with a clear understanding of the end date.

3. Follows Clear Structure

Unlike other methods, Waterfall focuses on defined and clear steps of the development process, which makes its structure very simple. The steps Waterfall follows are requirement gathering, design, implementation, testing, deployment, and maintenance. Completing each of these steps is essential before moving to the next one. Besides this, Waterfall doesn’t require project managers and software developers with specific certifications.

4. Easy to Control and Manage

As Waterfall divides the section, it becomes easier for the programmers to handle the entire software development process.. Each step in the Waterfall software development process has its own procedure which is completed and processed without overlapping each other. This makes it easy to manage and control each step by simply following the hierarchy.

5. High Visibility

The Waterfall model provides an output at each phase, which creates high visibility for the software experts. Later on in the development process, the project manager and client analyze it to check the project’s progress. 

2.2 Disadvantages of Waterfall

The Waterfall model is a traditional software development approach, which has received criticism due to its outdated development style. Because of this, the developers must have a thorough knowledge of the method before using it. To make it more clear, here are some of its disadvantages. 

1. Making Changes is Difficult

The waterfall approach is based on a set of standards that keep teams continually moving ahead. In its usual form, the approach never allows for unplanned or unexpected modifications or adjustments. For example, if a team follows the Waterfall method with its strict standards and suddenly faces an unexpected challenge that requires a modification in scope or objective, they will be unable to modify anything given its limitations.

2. Testing Gets Delayed Until Completion

The Waterfall methodology’s testing phase comes in the latter part of the software development process, as it insists that testing must be conducted after each stage is completed. This leads to substantial delays as the project testing takes a lot of time to complete the tests for large versions. Therefore, if the client is expected to provide frequent suggestions that can require constant changes, then Agile would be more appropriate than Waterfall.

3. Not Perfect for Complex Projects

For complex projects, developers need to do frequent testing. But with Waterfall, the testing phase is the only level that detects the bugs in the project. Therefore, before the testing phase, developers are unable to find any mistakes or errors in the code. This drawback of the Waterfall model makes companies choose agile over waterfall development methodology.

2.3 Waterfall Development Cycle

Waterfall development follows a specific set of stages that are in a sequential order to create software. These stages are – 

1. Requirement Gathering

In the requirement-gathering stage of the Waterfall approach, all the necessary information is collected. The information gathering can be conducted in many different ways such as interviews, interactive brainstorming, and questionnaires. At the end of this first stage, the custom software development team gathers all the required information about the project and the client’s requirements. A requirement document contains all the necessary customer information for the team’s future reference.

2. System Designing

With the use of a requirement specification document, the design team starts working on the look and feel of the software. This stage is dedicated to purely designing the product with no coding involved. The development professionals establish specifications like hardware and programming language requirements for the project.

3. Development

After the design comes development. In this stage, software engineers take the information from the previous stage and start creating the functionalities of the product. In the Waterfall methodology, the programmers implement the code in small pieces. These small parts of the code are integrated either at the end of the development phase or the beginning of the testing process.

4. Testing

Testing of the project begins after the coding is done. The test team methodically identifies the issues in the system and reports them. If there is any serious problem in the project, the development team may need to revisit the phase where the issue can be solved.

5. Deployment

Deployment is the stage where the product is delivered to the customer, but only after the testers approve it. Here the development team submits the deliverables for release.

6. Maintenance

The product delivery/deployment is not the last stage. Once the client starts using the system and any issues arise, the team of development experts will have to create updates and patches to address those issues. If the problem or bug is significant, it may return to stage one of development.

2.4 Principles of Waterfall Development

The three major principles of Waterfall development are:

• In the Waterfall model, the involvement of the customer is very low because the team prefers to use the requirement specification document for reference rather than discussing the issues with the clients.
• All the activities of the Waterfall development team are based on the project documentation created before software development.
• The main principle of the Waterfall approach is its sequential structure. All the software development stages in this model are performed one by one in a proper sequence.

2.5 When to use Waterfall Methodology?

Before adopting the Waterfall methodology for developing software, there are many factors a software development team should consider such as: 

1. Strict Processes

When the organization follows strict processes that the programmers have to adhere to, then the use of the Waterfall model is the best choice.

2. Fixed Project Timeline

When the customer fixes the timeline of the project, and there are no chances to change it, Waterfall is the only method that can provide the predicted outcomes.

3. Enhancement of Current Product

When the project requirement is for the enhancement of the legacy system, where the client has clearly defined the features and the interface is similar to that of any other product, using the Waterfall method is a great option.

4. Fixed Budget

If the project owner defines a budget that is not flexible, the best choice for the developers will be the Waterfall method to create the software.

When the software development project has a fixed amount of budget and time or the requirements are well-defined, the developer chooses the Waterfall method. The reason is that the waterfall methodology works well with fixed timelines and budgets. 

Besides, Waterfall is a software development methodology that provides a set of processes based on the principle of approval. Here, after the approval of the previous phase, the developer starts working on the next one. Therefore, no time is wasted after the completion of the project. This allows the developer to complete the project within a set timeframe without requiring customer presence.

2.6 Project Management Tools of Waterfall

Some of the most popular Waterfall project management methodology tools are as below.

1. Project Manager

Project Manager is a tool that offers Gantt charts and lists of tasks that can help manage multiple projects easily. It offers many modern solutions including Kanban boards and multiple views. Moreover, the interactive Gantt charts enable the programmers to collect all the project requirements and documents by using features like unlimited file storage and real-time tracking.  

2. Trello

Trello is a tool that enables the Waterfall development team to maximize project scope and efficiently manage it by involving a small team of engineers. It comes with various features like cards, boards, and lists. It offers various functionalities through third-party integrations. 

3. Jira

Like Trello, Jira also offers Gantt chart functionalities through third-party integrations. It helps developers prevent problems, track the most critical ones, and solve them. Jira offers features like navigation and project templates. It enables the programmers to customize processes for every team member.

4. GanttPRO

GanttPRO is a popular online project management tool that the Waterfall development team can use to keep the planning simple. The programming team and customers can easily engage using this framework. It enables splitting the projects into different tasks, subtasks, and groups of milestones. Besides, one can also organize and schedule tasks. Creating a Gantt chart timeline becomes easy with this tool.

3. What are the Differences Between Agile vs Waterfall?

Parameters	Agile Methodology	Waterfall Methodology
Project Scope	When the scope of the project is unknown and the changes can come at any time during the development process, software engineers prefer to use the Agile model.	When the project comes with a well-defined scope with no room for any type of changes during software development, you have to opt for the Waterfall model.
Team Collaboration	The Agile method encourages the synchronization of the team members at every stage of the development process and it also includes clients in the decision-making.	The Waterfall method doesn’t require the team members to continuously coordinate with each other and neither does it involve the clients while making development decisions.
Flexibility	The Agile methodology follows quite a flexible approach that allows changes in the project requirements even after the initial stage.	The Waterfall methodology works on the principles that do not allow any type of changes after the development of the project starts.
Project manager	In Agile, the team members are interchangeable, which can lead to a faster work process. As the entire team handles the project in Agile, the project manager is not required.	In Waterfall, the software development process is straightforward which makes the role of project manager very important.
Mindset	Agile follows a mindset where the product satisfies the requirements of the customers and changes itself accordingly.	Waterfall follows a project mindset and forces the programmers to focus on the completion of the project with a pre-defined goal.
Requirement Analysis	In Agile methodology, the product owner prepares the requirements by collaborating with the team daily.	In Waterfall methodology, the project requirements are created at the very beginning with the help of business analysis.
Approach	Agile follows an iterative approach which creates repetitive use of the phases like planning, developing, prototyping, and more.	Waterfall follows a sequential approach which makes it use all the project development phases only once.

4. Hybrid Approach: How Both Agile and Waterfall Can Work Together?

Agile and Waterfall techniques can be combined, depending on the demands and nature of the project, to create a hybrid approach. For instance, for the first stages of planning and design, you may employ the Waterfall technique; for the second stages of development and testing, you might employ the Agile methodology. 

Alternatively, you might focus on the project’s essential features and functionality with the Agile technique and the secondary or regulatory parts with the Waterfall approach. By combining the best features of both methodologies, you can make your project fit your unique needs.

The Agile-Waterfall methodology might be useful in situations where:

• You have teams that frequently work together.
• If you are unable to make a direct switch to Agile due to its complex nature, it would be beneficial to start with the tried-and-true Waterfall approach. You can gradually include Agile practices until the whole team is on board with the new way of doing things.
• Despite the project’s predetermined timeline and budget, Agile’s streamlined approach to planning, analysis, and design yields better results.

5. How to Choose the Right Framework For Your Business?

To choose the right framework for your business, here are some of the steps a business organization must follow:

• First of all, evaluate the project requirements and the team dynamics.
• Then consider factors like the scope of the project, the time required to develop it, and the budget.
• Then align the customer needs and business requirements.

Once all these things are done, you will be able to figure out which framework suits the project as per the requirement choices.

6. Conclusion

Agile and Waterfall methodologies have different approaches and are best in their own respective ways. Both of these software development methodologies allow developers to focus on the project and its goal. But which one to prefer is completely dependent on the scope of the project and the development team as these are aspects that decide the timeline and budget.

Frequently Asked Question

What is the main difference between waterfall and Agile?

One of the major differences between the Agile and Waterfall methods is that the Agile approach encourages team members to work simultaneously on various phases of the project while the Waterfall approach requires the team members to complete one phase before moving to the next. 

Is Jira for Agile or waterfall?

Jira is basically an agile project management system but it can also be used while working with the Waterfall approach for project management to an extent.

Is Agile more successful than waterfall?

Yes, projects developed using Agile methodology have a significantly higher success rate than Waterfall. 

Is Agile more expensive than Waterfall?

According to Standish’s The Money Pit study, Agile projects were discovered to be four times more cost-effective than Waterfall projects, while also delivering greater levels of customer satisfaction.

What is the difference between Agile and waterfall auditing?

In terms of how they handle projects, Agile and Waterfall cannot be more different. In contrast to Waterfall’s sequential, step-by-step methodology, Agile emphasizes flexibility and iterative development. Agile permits modifications while work progresses contrary to the Waterfall’s essentially fixed nature once work has begun.