Guide to Estimating Software Development Costs 2020

Every project starts with an estimation. Estimation plays a crucial role in project planning. The main problem is that the customers want as much functionality as possible for the lowest cost. Performers from their side are interested in larger budgets, allowing them to attract more qualified specialists. As a result, sides either agree or not. The future of the entire project depends on estimation. Having an experienced team is also one of the keys to project success. The process of estimation is sometimes subject to biases by the estimator. There are a bunch of examples of inaccurate estimation. If a large project overruns its estimate, it can have disastrous consequences. In Jelvix, we have extensive experience in project estimation. We have developed numerous projects and successfully delivered them in time. Our team has its own approach proven over the years.

Key steps in our approach to estimating a software project:

  • Define a Project’s Complexity
  • Add a Risk Buffer
  • Consider “Time Eaters”
  • Predict the Team Capacity
  • Write User Stories
  • Define Story Points to the Tasks
  • Determine the Team’s Velocity
  • Calculate the Project Duration

Project estimation methodologies:

  • Waterfall Methodologies
  • Agile Methodologies

Useful tools to track estimation:

  • Jira
  • Trello
  • Asana
  • Google Sheets and MS Exel

In the project estimation, it is essential to get as many details as possible from the client. It helps more accurately plan the work without creating serious changes. All projects have risks because, at the preparation stage, not all nuances can be clear. We truly believe that communication with the client through all development stages has a big impact on project success. We always inform the client about the progress of work and ask for feedback. Go to our article for a deeper understanding of the theme.

CEO at Jelvix | Global Technology Partner for Software Innovation and Industry-Leading Solutions