Modern ways of living have made the people to depend on internet services for everything. The mounting information from various sources like social media, implicit and explicit information, user's geographical location, and the internet of things had increased the need of a recommender system. From e-governance to e-shopping, a recommender system helps people in finding the needed item or information and also boosts sales in the market of those items. Though many studies elaborate about recommendation systems, challenges in developing the recommendation systems, prevailing issues of recommendation systems and discussions on prediction accuracy are not detailed in any of the earlier works. Therefore, in this article, in order to increase the accuracy of the recommender system, the developmental challenges and issues in constructing recommender systems and for evaluation metrics in prediction accuracy are identified and detailed.