Abstract The current research aims to investigate the preparedness among organizations in managing requirement volatility, and how it is influenced by process factors characterizing a software project. A combination of interviews and survey organized in two phases has been used to assess the level of awareness related to requirement volatility, and the current level of organizational competencies in dealing with the problem. Frameworks regarded suitable for handling volatility has been presented. Factors governing process model selection and usage and their applicability under requirement volatility have also been explored. Concerns were raised over the high percentage of projects found affected because of requirement volatility. Two widely used approaches for managing projects under volatility were found to be involving the business side and resorting to iterative project development. Difference in usage of the approaches based on process models could be observed. Influence of business/customers, project complexity and managerial preferences emerged as the top three factors guiding process model selection. The variation of these factors under requirement volatility has been pointed out. The results also highlight incongruence between perception and practice related to process model usage in projects endangered because of requirement volatility.