Software cost estimation: Process, Methods and Tools

Software Cost Estimation is widely considered to be a weak link in software project management. It requires a significant amount of effort to perform it correctly. Errors in Software Cost Estimation can be attributed to a variety of factors. Various studies in the last decade indicated that 3 out of 4 Software projects are not finished on time or within budget or both. The problem lies in the estimation of the amount of effort required for the development of a project. Several different techniques for performing software cost estimation, including expert judgment and algorithmic models are available. Expert judgment is a common way of estimating the effort required for a project. Unfortunately, this method of estimation does not emphasize re-estimation during the project life cycle, which is an important part of project tracking, because it allows the estimates to be improved during the project life cycle. COCOMO is a popular algorithmic model for cost estimation whose cost factors can be tailored to the individual development environment, which is important for the accuracy of the cost estimates.