Project Management & Task Management Software Buying Guide

Project management software is a major help in facilitating the workflow of any team, whether it's a tight-knit startup crew or a sprawling, disparate corporate project with many teams working in concert with one another. Tasks can be assigned or reassigned as needed, and deadlines can be meted out and monitored easily from one central location. 

The best project management software automates workflows so when one component of a project is complete, other relevant parties are notified and new tasks are assigned. Here is a look at this software and some of the best project management software applications. 

Project management software comes in three tiers, according to Workzone. The first tier deals with simple task management for a small team, usually around 15 or fewer users. This type of software is easier to use but lacks complex features. The second tier is better for larger teams and allows the project manager to keep track of how the tasks are getting done and how they are impacting the overall goals of the team. This tool allows you to track all of your concurrent projects. 

The third is suited for large-scale companies that comprise multiple large teams. The software designed for this tier not only tracks projects and tasks, but it can be expanded with additional features to suit the organization's workflows. This tier takes more time to learn, and the costs of implementation are higher as well.

In 2015, the size of the project management software industry was estimated at $2.54 billion, and the industry is projected to grow at a fast pace. Factors driving the industry's growth are the expanding adoption of cloud-based services, plus the continued automation and digitization of businesses across all industries. Small and medium-sized companies contribute the major source of revenue for these companies. 

The most prominent project management companies include HP, Microsoft, Oracle and Workfront Inc. The market is dominated by a small number of big businesses focused on acquiring or forming new companies, making the field highly competitive.

The first step in choosing project management software is to determine whether cloud-based software or installed software is best for your organization. From there, listing your specific needs and determining which vendor aligns best with those priorities allows you to discern which software has the structure and features that will best suit your business. Don't overpay for project management features you might not need. 

Once you've established your needs, create a list of companies that are in your price range and offer the features you most need. Investigate each one so you can compare services, prices and the level of support you can expect. 

Make sure each provider shows you in writing what you can expect from them so you understand exactly what you will be paying for. As always, never sign anything unless you're truly prepared to move forward and you fully understand the terms, subscription period, costs and services provided.

So how much can you expect to pay for a project management solution, and how are you billed for this software? 

Essentially, costs will vary from company to company, depending on the depth and breadth of each solution. The good news is that many vendors have a trial period so you (and your team) can test the software for a limited time to evaluate whether the solution is a good fit for your organization. Project management software is paid for in one of the following ways: a monthly or annual subscription, or a one-time cost for locally hosted solutions. 

Monthly and Annual Subscriptions

Monthly subscriptions for cloud-based software vary greatly both in price and features. Depending on your company's size, you can expect to pay different amounts. Many solutions charge a per-month, per-user cost, while others are simply a flat monthly fee. Often, you can get a discount by signing up for an annual subscription.

According to Capterra, small business project management software averages $45 per month, midsize companies can expect to pay around $130 per month, and enterprises can expect an average cost of roughly $200 per month. These figures are averages; your costs, depending on your company size, employees and features, may be lower or higher than these averages.

Annual subscription costs vary depending on how many users you have and gross revenue managed. For some software applications, you can expect to pay $65 per user, per year, while for other software solutions, you can pay upward of $700 per million of gross avenue managed.

One-Time Costs

There are some software solutions where you pay a one-time fee and then own the software permanently. While the pricing for these types of applications is straightforward, sometimes there are additional service or maintenance fees you pay annually.

Check with the provider prior to buying the software to identify any additional costs. (Do they charge for priority support? Is there an annual maintenance fee?) Installation costs range from $600 to $10,000, according to Capterra, with the average price being $4,600.