Abstract: Innovation is considered as one of the reinforcing agents in organizations. Software engineering teams are composed of different people with different skills. These teams can make use of innovation. The aims of using innovation in these teams are of three types: competition in market; production of goods and general or other goals. This research attempts to examine different viewpoints and offer innovation as an opportunity in software teams. However, if not controlled, innovation can be a real challenge for these teams. This research try to answer the question that whether innovation is an opportunity or a challenge in software development. As the research indicates, innovation as an opportunity in software development teams was accepted and if controlled and managed correctly, it can bring about many advantages for the team and the organization.