Agile Practices and Their Impact on Agile Maturity Level of Software Companies in Nepal
Authors: Biswakarma Gangaram , Bhandari Poojan 
Published: March 2023

Aim/Purpose: Using the Agile Adoption Framework (AAF), this study aims to examine the agile potential of software development companies in Nepal based on their agile maturity level. In addition, this study also examines the impact of various basic agile practices in determining the maturity level of the agile processes being implemented in the software industry of Nepal.

Background: Even if most organizations in the software sector utilize agile development strategies, it is essential to evaluate their performance. Nepal’s software industry did not adopt agile techniques till 2014. The Nepalese industry must always adapt to new developments and discover ways to make software development more efficient and beneficial. The population of the study consists of 1,500 and 2,000 employees of software companies in Nepal implementing agile techniques.

Methodology: The sample size considered was 150 employees working in software companies in Nepal. However, only 106 respondents responded after three follow-ups. The sample was collected with purposive sampling. A questionnaire was developed to gain information on Customer Adaptive, Customer Collaboration, Continuous Delivery, Human Centric, and Technical Excellence related to agile practices along with the Agile Maturity Level.

Contribution: This research contributes to the understanding of agile practices adopted in software companies in developing countries like Nepal. It also reveals the determinants of the agility of software companies in developing countries.

Findings: The results suggest that some of the basic principles of agile have a very significant role in Agile Maturity Level in the Nepali context. In the context of Nepal, human-centered practices have a very high level of correlation, which plays a vital role as a major predictor of the agile maturity level. In addition, Technical Excellence is the variable that has the highest level of association with the Agile Maturity Level, making it the most significant predictor of this quality.

Recommendations for Practitioners: As Nepali software companies are mostly offshore or serve outsourcing companies, there is a very thin probability of Nepali developers being able to interact with actual clients and this might be one of the reasons for the Nepali industry not relying on Customer Adaptation and Collaboration as major factors of the Agile methodologies. Continuous Delivery, on the other hand, has a significant degree of correlation with Agile Maturity Level. Human-centric practices have a very high level of correlation as well as being a major predictor in determining the Agile Maturity Level in the context of Nepal.

Technical Excellence is the most significant predictor and the variable which has the highest level of correlation with Agile Maturity Level. Practitioners should mainly focus on technical excellence as well as human-centric practices to achieve a higher level of Agile Maturity.

Recommendation for Researchers: There has not been any such research in the Nepali context that anyone could rely on, to deep dive into their organizational concerns regarding agile strategies and plans. Researchers will need to focus on a more statistical approach with data-driven solutions to the issues related to people and processes. Researchers will need to cover freelancers as well as academics to get a different perspective on what can be the better practices to achieve a higher level of agile maturity.

Impact on Society: This study on Agile work is accessible not only to the software industry but also to the general public. The Agile technique has had a huge impact on society’s project management. It has revolutionized how teams approach project planning, development, and execution. The paper’s findings will further information regarding the Agile methodology, which emphasizes collaboration and communication, fosters teamwork and higher quality work, and promotes the exchange of knowledge, ideas, and the pursuit of common goals.

Future Research: Owing to the limitations of this study, it is necessary to analyze agile practices in the Nepalese software sector using additional factors that influence agile maturity. The conclusion that years of agile experience do not serve as a balancing factor for both agile practices and the Agile Maturity Level requires additional research. Whether a software outsourcing firm or not, the organization type had no bearing on the degree of maturity of agile methods; this leaves space for further research.