Essential project management software buying information
Project management software helps businesses plan, organize, and manage multiple projects, such as marketing campaigns, events, product and software releases, and construction projects. The software provides features to allocate tasks to individual contributors and teams, create project workflows, collaborate with team members, and reporting to track project and task progress.
Project managers and team members are the main users of project management software. This includes unofficial or informal project managers, such as construction managers or marketing agents who are coordinating project work.
Most project management software solutions on the market are priced on a "per month" basis, and their entry-level pricing plans range from $7 to $1,500 per month. 1
First-time buyers should begin evaluating options with a budget, number of users, specific use cases, and necessary integrations in mind. Partner with stakeholders on a list of important questions for vendors to help you evaluate their systems based on your needs, such as:
Which project management tasks can this system automate?
How can we use this tool’s dashboards to better visualize and track statuses of projects?
How does this tool support our project management methodologies (e.g., agile, waterfall)?
What level of technical support will I need from the project management software provider?
Does this tool use artificial intelligence to generate status reports and/or enhanced resource planning? If so, how?
Hussain Bandukwala 2, a project management office (PMO) consultant and PM instructor who’s trained more than 100,000 professionals, says a question that “really stumps” many companies is how different license types within a product work.
“With the advent of software as a service [models], you have different user-based license types,” he says. “So it’s important to understand what each license type gives you, plus their cost and limitations.”
What are the most reviewed project management systems?
Capterra Shortlist identifies the top project management systems based on a proprietary blend of user ratings and popularity, helping small businesses efficiently find the most effective project management solution for their needs.3 “Here are the five most-reviewed products in our Capterra Shortlist for this category:
These rankings are determined by combining verified user ratings and publicly available web search popularity data:
Ratings score: Relative score of the software based on ratings given by users on Capterra, normalized for number and recency of reviews.
Popularity score: Relative popularity of software based on web search trends and products’ web presence.
What is project management software?
Project management software is a system designed to automate task assignment, resource allocation, and milestone tracking for all phases of a project. It helps create, assign, and track project work with features such as task management, project status report generation, budget tracking, and timeline tracking. Project management tools also help create resource allocation reports identifying resource overloads, imbalances, and availability constraints, allowing project managers to optimize resource allocation.
Project management software is related to the more robust project portfolio management software, as well as the more general-use tools including collaboration software and task management software.
Gartner reports that over 85% of businesses actively use project management software and the market is expected to reach a valuation of $7 million by 2026. 4
On Capterra, you’ll find 1,764 different project management products and 23,021 user reviews for these products have been added since September 2023 alone. 5
Project management software pricing
Project management software typically follows a subscription model, billed monthly. For those starting out, entry-level plans are generally available around $200 per month, offering essential tools such as task management, project planning and scheduling, tracking, and collaboration capabilities.
For more robust needs, advanced plans are available at approximately $1,400 per month. These include the foundational features and offer enhanced functionalities like advanced analytics, custom integration capabilities, and prioritized customer support, designed to cater to more complex project demands.
Over the past two years, our advisors have found that the majority—57%—of project management software buyers are setting their budgets within the range of $20 to $40 per month. 6
First-time buyers must note that initial expenses often include implementation, data migration, and customization costs, while ongoing expenditures typically cover maintenance and support services. These factors are crucial to consider for a comprehensive understanding of the total cost of ownership.
Project management software features rated by users
All project management software tools include task management, project planning/scheduling, and reporting/project tracking features. And most systems share a variety of common features such as prioritization, billing and invoicing, and managing multiple projects.
Core project management software features
Task management: Create tasks, track progress status and completion percentage and view any associated notes or comments. 91% rate this feature as critical or highly important.
Project planning and scheduling: Create project plans, define project objectives, set milestones, and establish project timelines. 91% rate this feature as critical or highly important.
Reporting/project tracking: Generate various reports and performance metrics to track progress, analyze data, and gain insights into project health and team performance. 84% rate this feature as highly important and critical.
Collaboration tools: Provides a channel for team members to share media files, communicate, and work together. 80% rate this feature as highly important and critical.
Highly rated common project management software features
Multiple projects: Ability to track and manage several projects simultaneously. 90% rate this feature as critical or highly important.
Prioritization: Arrange activities and tasks based on their relative importance or urgency to complete. 85% rate this feature as critical or highly important.
File sharing: Public or private sharing of digital files of various formats such as documents, audio/video, images and more. 80% rate this feature as critical or highly important.
Access controls and permissions: Define levels of authorization for access to specific files or systems. 79% rate this feature as critical or highly important.
Billing and invoicing: Create, manage, and send invoices or bills to customers. 67% rate this feature as critical or highly important.
Buyers should keep in mind that just because one product has more features than another, it doesn’t make it better for your business. Focus on how well a given system performs the key functions your team will use it for rather than putting too much value on bonus features that may not make a big difference for your business.
“If you don’t know what you are looking for in project management software, any software will look appealing to you,” notes Bandukwala. “That’s why understanding your own requirements is key. As the saying goes: if you don’t know where you’re going, any road will take you there.”
Top project management software benefits identified by users
1. Enhanced collaborative workspace: Enhances team interaction and collaboration through a unified platform that supports file sharing, real-time communication, and collective problem-solving, applicable in both remote and in-office settings.
“I love the team and collaborative workspace it allows for so that you can truly work remotely as an operational and efficient team.”
–Amanda H., business strategist, marketing and advertising
2. Precision task management: Provides robust tools to meticulously organize and track tasks against critical project metrics like timelines, budgets, and scope, ensuring each team member has clear directives and responsibilities.
“Without this tool we would not have been able to properly organize all of the steps and milestones, and undoubtedly would not have had such success with each project we completed.”
–Mike H., CIO, education management
3. Consolidated project insights: Consolidates all project-related documentation and communications into a single, continuously updated hub, making it simple to retrieve historical data and stay informed about current project statuses
“I love that you can have task/project-related convos and attachments. This is excellent if you are like me and frequently need to show people where they made decisions in the past in an easy way.”
–Michelle M., manager, non-profit
4. Workflow automation for peak efficiency: Streamlines the flow of project tasks and information, enforcing business process rules automatically to minimize oversights and boost efficiency, thereby solidifying foundational project management practices.
“In order to save time and cut down on mistakes, we have developed our own workflows, implemented reminders, and totally automated repetitive chores. We have achieved greater productivity and a more solid foundation for our performance processes.”
–Christian P., HR manager; health, wellness, and fitness
Amidst these core benefits, the integration of Generative AI has introduced a new layer of sophistication to these systems. This technological advancement has notably amplified the capability for detailed scenario planning, a feature that was already integral but is now becoming a standout aspect due to AI's influence.
Bandukwala explains: "Scenario planning for project portfolio management has already been in play, but the whole advent of Gen AI has really thrust everything into popularity, and made way for many new features to help users manage projects more effectively and efficiently." This evolution marks a significant shift in how project management tools are perceived and utilized, highlighting their increasing importance in strategic business functions.
Common challenges of project management software identified by users
Navigating the landscape of project management software involves overcoming specific hurdles that can make or break the success of its implementation. With project managers citing unrealistic timelines (38%), challenges in managing budgets (36%), and resource shortages (34%) as their top difficulties over the past year [6], it's crucial to understand the user-specific issues that arise when deploying these tools. We've delved into user reviews from the past year to pinpoint common challenges faced by users, outlined below.
1. Cost concerns: Balancing the budget against the need for advanced features can be tricky. High costs can deter initial investment, especially for smaller teams or startups.
Ask your vendor: What is included in the base price, and how do additional features affect the overall cost? Can you provide transparency on pricing tiers?
Overcome the challenge: Investigate options that offer scalable solutions—where you can start with basic features and add more as your budget allows.
2. Complex user experience: An intricate interface can deter users from fully engaging with the software, limiting its effectiveness and reducing overall user satisfaction.
Ask your vendor: Can you describe the design philosophy behind your user interface? What steps have you taken to ensure the interface is intuitive?
Overcome the challenge: Opt for software that prioritizes a clean, intuitive user interface. Evaluate the software through a trial period to ensure it meets the needs of your team’s workflow and enhances usability.
3. Steep learning curve: New software can be daunting to learn, especially for teams accustomed to different processes. A steep learning curve can slow down adoption and reduce overall efficiency.
Ask your vendor: What training and support services do you offer to new users? How do you simplify the learning process for diverse teams?
Overcome the challenge: Choose software that not only provides comprehensive training materials like tutorials and webinars but also offers ongoing support.
While these challenges are significant, it's also important to recognize the potential benefits that come with successful implementation.
For example, Bandukwala describes the potential risks and rewards of adopting AI and AI-related features in project management tools:
"There's excitement because there are so many possibilities—acceleration of pace, automation, suggestions, predictions,” he says. “But there are also natural apprehensions around potential roadblocks, such as integration issues, data quality, and ethical concerns."
What is project management software used for?
Analysis of our extensive project management software reviews highlight the most common use cases:
Coordinating tasks across project teams: Businesses use project management tools to assign and track tasks at the individual and project level.
Managing multiple projects: Project management software users can create and manage multiple projects within one tool, allowing individuals to see their tasks as assigned by due date or project.
Optimizing resource management: Project managers are able to assign team members to projects and tasks based on their availability, skillset, and business need.
Analyzing and tracking project status: Project management software users can view dashboards and generate reports at the individual, project, and, with some tools, program/portfolio level.
Improving communication and collaboration: Teams and clients can communicate using built-in messaging and file sharing. The tool can send notifications to individuals, reducing reliance on email and enabling efficient collaboration, even for geographically dispersed teams.
Many project management software systems are designed to support specific methodologies and/or industries:
Who uses project management software?
Project management software is widely adopted by a variety of professionals who rely on its robust capabilities to manage and streamline work tasks efficiently. Key users include marketing and sales teams, IT departments, construction managers, and personnel within non-profit organizations, each leveraging the software to suit their specific needs.
How different professions use project management software:
Marketing and sales teams: They harness project management tools to organize campaigns, monitor progress towards sales targets, and manage interactions with prospects and customers.
Information technology departments: These professionals use the software to manage software development projects, track updates, and maintain compliance with technical standards.
Construction managers: They utilize project management tools to schedule work, control budgets, and coordinate communication between site managers and subcontractors.
Non-profit organizations: Staff in these organizations apply the tools to manage fundraising events, coordinate volunteer schedules, and track grant application processes.
Analysis of more than 2,084 advisory calls conducted by Capterra’s advisors with project management software buyers since September 2023 reveals that with 62% of users coming from small businesses with fewer than 100 employees and about 65% of these businesses generating less than $25 million in annual revenues, the role of project management software in supporting business operations across various sectors and company sizes is unequivocally affirmed. 7
Common project management software integrations
We analyzed our extensive reviews database and determined that the three categories most often integrated with project management systems are time clock, CRM (Customer Relationship Management), and task management. These integrations are crucial for enhancing the functionality and efficiency of project management software:
Time clock: Allows for accurate time logging on tasks, which is essential for budget tracking, payroll, and assessing productivity. This integration helps ensure that project timelines are adhered to and labor costs are monitored closely.
CRM: By connecting CRM systems with project management tools, businesses can streamline the flow of information between sales and project teams. This ensures that customer data and interactions are up-to-date and accessible.
Task management: Allows for a more granular level of control over individual tasks and subtasks. This aids in distributing work evenly, setting clear expectations, and tracking progress, which collectively improve project outcomes.
These integrations not only bring data and processes together but also provide a unified view of operations, which can significantly enhance project efficiency and effectiveness.
Recent trends in project management software
Rising effectiveness of flexible PMOs: We’re seeing a rise of an updated, flexible approach to centralized project management via Project Management Offices (PMOs) and the research shows they’re proving very effective. Check out this report to learn more about how to design a PMO that works for your business.
Evolving project management with AI: In this research-informed review of AI in project management, acclaimed author, Peter Taylor, paints a picture of the now and the revolutionary future in the professional project world, along with the benefits and the challenges of overcoming barriers or resistance to this new world.
The increasing importance of emotional intelligence (EQ) in project management: Seventy-seven percent (77%) of the most successful project managers say emotional intelligence (EQ) is very important and are using the skill more often over the past two years. Learn about how to get a competitive edge by increasing your own EQ in this report.
Learn more about project management software
Alongside our project management system category page, check out our 2024 Capterra Shortlist for Project Management, which highlights some of the top products in the market based on popularity and user ratings. Here are more niche-focused resources to help you find the right project management tool for your business:
