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How structure beats headcount in software delivery – London Business News | London Wallet

Philip Roth by Philip Roth
September 1, 2025
in UK
How structure beats headcount in software delivery – London Business News | London Wallet
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In many enterprise environments, when software delivery slows down, the knee-jerk response is to add people. More developers. More project managers. More oversight. But in most cases, this response leads to the opposite effect: increased misalignment, heavier process layers, and slower time to value.

Progress tends to come from the way teams are structured and supported, rather than from their size.

Bigger teams for slower outcomes

At a certain point, adding more people to a project introduces drag. Communication becomes more complex, dependencies increase, and decisions take longer. These are not minor issues. They are structural blockers that stall progress and innovation.

This is especially true in enterprise environments, where systems are already complex and constrained by compliance and governance. Scale is often interpreted as size, affecting flexibility and clarity.

Software factories without bureaucracy

Some IT leaders are approaching scale from a different angle. They’ve understood that headcount doesn’t matter as much, and they are building delivery systems that favor consistency, modularity, and repeatability.

Some teams are solving this by shifting to what’s often called an application factory model. Small, focused teams work within a shared environment of reusable components and proven practices, which helps them deliver quickly without having to start from scratch every time.

Autonomy drives speed

One proven way to accelerate the way we build enterprise applications is to empower small, cross-functional teams to work autonomously within a shared framework.

Velocity slows when delivery methods vary across teams. If every application requires a different process, toolchain, or approval flow, speed is lost in coordination. Shared APIs, reusable modules, and standardized pipelines help teams stay aligned while working independently.

Bottlenecks that are often overlooked

Delivery slowdowns often stem from the systems and structures in place.

System complexity is a frequent cause. Outdated configurations, fragmented tooling, and undocumented integrations turn small requests into multi-team efforts.

As teams grow, coordination overhead increases sharply. A five-person team manages ten communication paths. A team of ten manages forty-five. These interactions create friction that makes progress harder to sustain.

Processes built for smaller groups tend to break down under scale. When workflows and team design don’t evolve, growing the team introduces confusion, duplicate work, and decision fatigue.

Why too much headcount backfires

Extensive project data backs up what many IT leaders observe on the ground. A global ISBSG study of more than 1,600 software projects found that as teams grow, productivity generally declines. Beyond a certain size, new contributors add more overhead than output.

Fred Brooks famously pointed this out decades ago: adding people to a late software project usually delays it further. Complex development tasks are not easily divided, and onboarding new developers introduces unavoidable ramp-up time.

Larger teams don’t just require more coordination. They also bring more variation in code quality, testing approaches, and architectural decisions. This increases the effort required to integrate changes and ship reliable software.

A smarter model backed by data

Detailed research into 491 software projects found that teams of 3 to 7 people consistently outperformed larger groups in delivery speed, cost control, and software quality. Teams above 9 members showed a sharp increase in cost variance and longer schedules.

Communication load is a key factor. A smaller team can operate with direct, fluid communication. As team size increases, additional layers appear (meetings, reporting cycles, handoffs) which slow decision-making and dilute ownership.

The best-performing teams pair small size with clear processes. Structured collaboration, reusable tools, and clean team boundaries make it easier to maintain momentum and adapt to shifting goals. Metrics like sprint throughput, defect rates, and review cycles all improve when the delivery environment is well-structured.

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