Cost estimation is a critical aspect of the planning process when embarking on a custom software development venture. However, due to the dynamic nature of custom software development, accurate estimation of the development efforts and costs can be a difficult process that can even compromise the project success.
If done accurately, proper estimates of the development cost can allow your organization to gain control over the progress of development while reducing your risks and ensuring higher software quality. Careful cost estimation also can help ensure the overall success in terms of budget and timeline adherence when it comes to your project.
With only 32% of software projects completed within budget and on time, a further 24% failing outright (incomplete or cancelled), and 44% of questionable status (meaning incurring cost overruns), robust cost estimation is a necessity .