Software Handovers – The Impact On Innovation

by | Apr 30, 2025

B O N C O D E   B L O G

Many companies rely on third-party development teams to build and maintain their custom-coded software systems. External teams might manage, refine, and extend a system for a period of time – from months to years – but at some point responsibility for the software will revert to the owning organization. 

When that happens, some businesses encounter unexpected challenges. Without a clear understanding of the software’s maintainability, they risk operational inefficiencies, unplanned expenses, and disruptions to innovation that could have been avoided – if only they’d had the proper foresight.

Take a proper look under the hood

A software handover can be triggered by various factors including contract expiration, cost-saving measures, strategic realignment, or legal requirements. When this transition occurs, the owning organization assumes full responsibility for maintaining and evolving the software. 

While the system may appear to be functioning well, there may be hidden complexities that impact long-term maintainability and innovation. For example, it could be the case that libraries and/or Open Source components haven’t been properly updated over time, resulting in your system running older versions that contain  vulnerabilities. 

That’s why when taking over custom software, it’s crucial to assess what’s really inside the codebase. Key concerns include:

  • Technical debt: Accumulating shortcuts in code design, outdated libraries, or reliance on deprecated frameworks can lead to costly refactoring down the line. 
  • Unsupported third-party dependencies: Some components may no longer be maintained by their original developers, creating security vulnerabilities or integration challenges.
  • Code complexity and documentation gaps: If code is overly complex or poorly documented, onboarding new developers or making changes becomes difficult and resource-intensive. 
  • Infrastructure and portability concerns: If the software needs to transition from an external vendor’s cloud environment to an in-house infrastructure, understanding portability requirements is essential.

The impact on innovation

A lack of visibility over software maintainability has a direct impact on innovation. That’s because without a detailed technical assessment, there’s a risk that issues will only be discovered when problems arise – leading to costly, reactive fixes instead of proactive planned improvements.

Organizations taking ownership of custom software need to understand the skills required to maintain it. An unexpectedly complex or outdated codebase may demand specialized expertise that isn’t readily available in-house. This can lead to unforeseen hiring costs or expensive upskilling programs. 

Financially, unplanned maintenance and technical debt remediation can put a strain on IT budgets, diverting funds from strategic initiatives and innovations. If hidden technical constraints surface only after the transition, roadmaps for software enhancements or integrations can get derailed. 

Additionally, security and compliance risks associated with outdated dependencies or undocumented code can further stretch resources, requiring immediate attention to avoid regulatory violations or system vulnerabilities. 

Avoid the ‘if only we’d known’ moment

Without a clear picture of the software’s maintainability, organizations risk making decisions based on assumptions rather than facts, potentially leading to costly missteps down the line.

Too often, companies take over software assuming everything will continue running smoothly – only to face unexpected breakdowns months later. By conducting a thorough review at the handover stage, organizations can avoid reactive firefighting and ensure they have the right people, processes, and budget in place from day one.

Think of it like buying a used car. From the outside, it may look polished and roadworthy, but if you don’t check under the hood, you could end up stranded on the highway due to an unforeseen fault. A pre-handover code assessment, much like a mechanic’s inspection, ensures your software is actually good-to-go, giving you confidence in its maintainability over time.

The solution? Independent software quality assessment

Software maintainability isn’t just a technical concern – it’s a business-critical issue that impacts your resource planning, financial stability, and long-term strategy. When your organization inherits custom-coded software from third-party developers, it must take proactive steps to assess the codebase.

To mitigate the risks, your organization would be wise to invest in an independent software quality assessment before assuming full ownership. Bringing in external experts to analyze the codebase gives you an objective view of:

  •  The overall health and maintainability of the software
  •  Potential risks and technical debt
  •  Necessary skill sets required for ongoing maintenance
  •  A realistic cost estimate for sustaining and evolving the system

This assessment serves as an insurance policy against nasty surprises, enabling your organization to make informed decisions about staffing, budgeting, and long-term planning.

When it comes to software ownership, the best surprise is no surprises at all. Investing in a comprehensive code assessment on day one will pay dividends in terms of stability, predictability, and peace of mind for the future. 

Engaging independent experts to evaluate software quality and maintainability provides the clarity you need to plan effectively, avoid unnecessary costs, and ensure a smooth software handover. Talk to us today

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