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Can you suggest how to change the Type of project other than "Software, Service Desk, Business"? I need to fix more relevant terminology for type. other wise need to delete that particular 'Type of Project".
Jira project types are based on Atlassian applications:
This corresponds to Software, Service Desk and Business respectively.
Hence with the above known there is no way to have a new project type without building your own add-on that has a custom project type.
Now about deleting project types, this is not possible. The best you get is switching a project type.