How to Do PESTLE Analysis for Software Projects

Are you about to jump into a new project? If so, your first stop should be PESTLE Analysis. Smart startups know the value of extensive research and how helpful it is for developing a quality software project.

You can never have enough information before you launch a new piece of software or product. A big part of the challenge is securing that information, however. That’s where analysis can help.

But what exactly is PESTLE Analysis?

PESTLE analysis

What is PESTLE Analysis?

Put simply, PESTLE Analysis is a tool for business analysis. Often called, PEST analysis, PESTLE Analysis provides a firm foundation for marketing your business or product. It analyzes the external environmental factors that affect your market research. In this type of analysis, we look directly at external environmental factors that will affect your business now and in the future. By examining these factors, we can better understand the decline and growth of certain businesses and where to go next in our company or with our product.

Essentially this research strategy gives you in-depth information about how the environment could impact your business. However, it certainly should not be the only form of research you use for software engineering a stellar product. It is a complementary strategy you can rely on for quality information. Each letter in PESTLE represents an external factor. These include the following.

PESTLE Analysis


Political factors include how local, national, and global governments can affect the economy within a specific industry. Examples such as trade tariffs, new tax policies, and health care policies can affect the revenue generating possibilities for specific businesses. This factor would examine the economic environment in a given industry or business. Understanding the current climate is crucial to a successful software product launch.


Unlike political economic climate, economic factors that directly affect your specific software project and the long-term affects that can come from that. This could manifest itself in multiple ways. For example, when inflation rises if affects the price of your product. It also relates to how much consumer power your customers have. When this is damaged it could spell disaster for your project. Interest rates, economic growth patterns, and foreign exchange rates all play a pivotal role in economic forces. It should not be overlooked.


Believe it or not, the social environment has an equally important affect on your market. Multiple factors such as demographics, societal trends, and population data all play a critical role in building the social context of your business. With time, social factors ebb and flow. Understanding where you are today, however, can take you to better places in the future.


Perhaps the most important factor for software projects, the technological environment helps you determine where your idea stands amid the climate. Factors included are availability, existence, and development. Technology innovations affect the operations of your industry. This could be to your advantage or disadvantage. Everything from Artificial Intelligence, automation, and technology research can change your business’ potential. Developing awareness around these market trends gives you a leg up on the competition as well.

A good way to think about how technology could affect your software project is to think about how technology is used every day. Everything from the coffee machine the barista uses to make your morning latte to the computer servers used for website development is run by technology. As a software developer, little else is as important as looking at PESTLE analysis technological factors. Understanding what is already available, like 3D technology, Internet connectivity, and automation empowers you to choose better tools to develop your next software project. Analyzing how the market uses technology and what makes the most sense as a software developer, strengthens your products right out the gate. Tech factors are an integral part of PESTLE analysis. Don’t skip this step in your analysis!


Next up are legal factors. Government regulations will directly affect your business, both on an internal and external level. This is especially important if you plan on bringing your software to a global audience, which most developers do. Each country has their own laws and regulations regarding business, so you do well to study those through PESTLE analysis.

Legal analysis allows you to examine and outline which laws and legal policies apply to your business. Safety standards, labor laws, and consumer laws are important to understand and then correctly implement in your business.


Depending on the business industry you are in, environmental factors are more or less important. If your software will exist within the agriculture or farming industry, then environmental factors may play a role. Some impacts you will want to explore include global climate, location, and weather.

PESTLE Analysis

How to implement PESTLE

Now that you understand what PESTLE analysis is and stands for, the next step is to think about how to implement it into your day-to-day software development. As a technology partner in software management, we appreciate how these many factors can play a role in the success or failure of your business.

To maximize your analysis, you have to go beyond the surface. Learning how to do PESTLE analysis is just a fraction of the job. Not only should you gather the data that PESTLE provides you with, but you should also work tirelessly to implement it into your software project. That can be a challenge, of course. One way to do this is to continually think about your project as you uncover new information. Ask yourself questions like, “How can political situations affect my industry?” “Is the environment ripe for technology innovations beyond my own?” and “What legislation will affect the way we do business?” Questions like these help relate the information you’re gathering to your software project.

In Conclusion:

Information truly is currency. Don’t miss out on the opportunity to do PESTLE Analysis for your business. And if you find it too difficult, partner with a firm who can help you. Your software development relies on sound data. It is a tool for a stronger, better, software project.

Check out more resources pages here

competitor research
Competitor Research

Explore the importance of competitor research, how to do it, and the benefits startups and entrepreneurs can expect from it. Click here to read more on competitor research.

software pricing
Software Pricing

Correctly pricing your software can determine its success. Consider this information for a better software product pricing model. Click here for more on software pricing.

Funding Your Project

Here are a few professional tips for getting your software idea funded. From VC’s to incubators, there are countless funding options available to you. Click here for more on project funding.

market research
Market Research

Wondering why market research is so important to the health of your product launch? Then consider this information on why it is critical for development. Click here for more on market research.

Incubators & Accelerators

Incubators and accelerators are a great way to get your project support, funding, and mentorship. It is also a lower cost option to get up and running. Click here to find an incubator or accelerator.


Lets talk.

Have you completed your PESTLE analysis and are ready for professional software consulting? Do you need product development support? Or maybe you’re looking for business analysis, whatever you need, we can help.

Complete our form and let's get talking. Send us a message by filling out the form or give us a call directly if forms aren’t your thing. We look forward to speaking with you!