In more and more parts of a company, software is indispensable for offering products and services. Being able to use applications with the desired quality and functionality on time and within budget is therefore an important success factor. This is not a simple task, because many organizations in the Netherlands find it difficult to estimate large software projects in a professional and accurate way, often resulting in software horror stories.

Software development projects often show budget and schedule overruns. This also harms the quality of the software and developers are feeling demotivated by the unattainable objectives. The lack of a realistic planning is one of the main failure factors in these horror stories that regularly make the news.

Even the estimate of large, complex IT systems is in many cases based on the experience of people and not on data. “We no longer need estimates or planning because we are agile,” is often heard. Nothing is less true. For projects of any significance, a realistic estimate at the macro level that has been translated into individual sprints is an absolute requirement.

7%

of the projects above €10 million is successful.

90%

of IT suppliers act at maturity level 1 or 2 (out of 5) when it comes to their Estimation & Performance Measurement processes.

4 BLN

euro is wasted by the Dutch government on failing software projects every year.

95%

of the customers chooses the cheapest tenderer without checking how realistic the provider’s estimate is.

200%

costs and schedule over-run in a project are very easily possible if the estimate is too optimistic.

Software Cost Estimation approach

To be able to estimate professionally, it is necessary to properly measure the size of the software requirements to be realized. This step is often skipped. Software Cost Estimation is an expertise. Measuring the size and use of data, statistical calculation with computing software and tooling are important ingredients for a professional and substantiated budget.

The Metri Software Cost Estimation service provides an accurate picture of the scope of the software to be realized in one of the international ISO standards for functional size measurements. Clients also receive a minimum, likely and a maximum scenario regarding the effort hours, costs and the duration of a project. In addition to calculating various scenarios, Metri also advises organizations on recording the correct project data to improve future estimates.

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