Factors Affecting Software Cost Estimation in Developing Countries

Cost is the main driving factor for all projects. When it is done correctly, it helps in the successful completion of the project. In this research we have discussed various factors that affect the estimation procedure. These include team structure, team culture, managerial style, project type (Core application or integrated application), client’s working environment. Accurate estimation is far difficult in developing countries where most of the organizations follow local standards. These inaccurate estimations lead to late delivery, less profit or in worst case complete failure. Software requirement gathering, development, maintenance, quality assurance and cost of poor quality are major groups responsible for overall cost in software production process. The exact proportion among them varies significantly in consecutive software releases, which is caused by many factors. The ever increasing need for the reliability of the software systems, especially mission critical applications in the public safety domain, raises the bar for the accuracy of prediction and estimation techniques. The accuracy of estimations in many areas brings about more concerns regarding techniques already used in the software industry. Widely deployed techniques, such as Wideband Delphi method, stress the engineering and technical aspects of the process of how estimates are prepared.