Software Cost Estimation
The group of people responsible for creating a software cost estimate can vary with each organization. However the following is possible in most scenarios:
· People who are directly involved with the implementation are involved in the estimate.
· Project Manager is responsible for producing realistic cost estimates.
· Project Managers may perform this task on their own or consult with programmers responsible.
· Various studies indicate that if the programmers responsible for development are involved in the estimation it was more accurate. The programmers have more motivation to meet the targets if they were involved in the estimation process.
Following scenarios are also possible
· An independent cost estimation team creates an Estimate
· Independent Experts are given the Software specification and they create a Software Cost estimate. The Estimation team reviews this and group consensus arrives at a final figure.
Factors contributing to inaccurate estimation
· Scope Creeps, imprecise and drifting requirements
· New software projects pose new challenges, which may be very different from the past projects.
· Many teams fail to document metrics and lessons learned from past projects
· Many a times the estimates are forced to match the available time and resources by aggressive leaders
· Unrealistic estimates may be created by various ‘political under currents’
Impact of Under-estimating
Under-Estimating a project can be vary damaging.
· It leads to improper Project Planning.
· It can also result in under-staffing and may result in an over worked and burnt out team.
· Above all the quality of deliverables may be directly affected due insufficient testing and QA.
· Missed Dead lines cause loss of Credibility and goodwill.


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