Project Estimation

Before starting the software development process, it is very important to figure
out what the final software product will look like from the point of view and
expectations of the business and the development team. To understand how the vision
of the customer and the development company coincides, we should determine the
route from the starting point of the project to the end point, i.e. “a ready solution”.
Therefore, the most important stage in IT project preparation is the precise
organization of the process of calculating labor costs. With an inaccurate estimate,
effective project management is not just problematic; it’s not possible at all.
The project estimate shows how much time the project team will spend to
complete each task to create modules and components of the future product. In fact,
the estimate of IT projects allows us to build a map of the route by which we will
come to the desired result. Each segment of our route on the map is the
implementation of defined tasks for the project.
“How much will it cost?” is the most frequently asked question from the
customer. The client often wants to know the cost and timing of his project
immediately. But in the case of IT projects, it can take days or even weeks to form an
adequate detailed estimate. IT products are not like goods on store shelves with
precise price tags, and without understanding the specific features of a project, it is
impossible to define the budget required to create it. This is why we start with a
thorough project estimate, in order to give an accurate understanding of how long it
will take the development team to implement all the tasks included in the project
The reliability of the project estimate is a very important factor. Calculating the
total cost and labor without fully understanding the project scope can create
significant problems for both the client and development team. Overestimation and
underestimation are not desirable, as they can lead to a number of negative
consequences. In case of underestimation of the project, the software team will have
to sacrifice the quality of work by compressing the development time and reducing
the number of developers. And if the contractor neglects the deadlines, the client will
become unsatisfied and lose confidence in the professionalism of the development
team. Excessive overestimation of the project is also fraught with uncertainties and
risks. Obviously, such projects will be much more expensive, and consequently, they
are unlikely to be taken into development. Another company could evaluate it better
and provide the customer with a more suitable and cost effective solution. Moreover,
extremely extended deadlines and lack of team control results in poor performance on
other projects and losses for the company.
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Taking the time to establish an accurate project estimate is the foundation for
effective software development. In order to achieve the desired goals, it is important
to align the day-to-day work of the team with the strategic goals of the organization,
which will only maximize the agility of the entire organization, its successes, and its