The Economics of Software Teams: Why Most Engineering Orgs Are Flying Blind
← Back to Blog The Economics of Software Teams: Why Most Organizations Are Flying Blind This post works through the financial logic of software teams, from what a team of eight engineers actually costs per month to what it needs to generate to be economically viable. It also examines why most teams have no visibility into either number, how that condition was built over two decades, and what the arrival of LLMs now means for organizations that have been treating large engineering headcount as an asset. Software development is one of the most capital-intensive activities a modern company undertakes, and it is also one of the least understood from a financial perspective. The people making daily decisions about what to build, what to delay, and what to abandon are rarely given the…
