Gamification is one of the many ways to motivate employees and introduce more fun in daily activities. The aim of the paper is to analyse the impact of gamification method on the software development projects. The paper contains results of a literature review about application areas of gamification, methods, positive and negative effects on projects. The paper also presents an overview of the gamification tools used in software development projects and attempts to answer the question about benefits of gamification usage: whether gamification in the project leads to the desired results and increases the employee productivity and motivation.