SYSTEMS DEVELOPMENT AND COST ESTIMATING

Abstract

Systems development cost estimating is a critical challenge for most IS managers. Inaccurate low estimates result in overruns and can reduce senior management's confidence in IS. Inaccurate high estimates can dissuade corporate management from funding worthwhile IS projects. If cost estimates are entered into a corporate budget, management may be even more concerned about them. The cost-estimating practices in effect at 115 organizations were studied to determine why cost estimating remains such a challenge for IS managers and to devise some guidelines to help IS management arrive at more accurate estimates.

Additional information

Notes on contributors

Albert L. Lederer

ALBERT L. LEDERER is professor of MIS and chair of the decision and information science department at Oakland University, Rochester MI.

Jayesh Prasad

JAYESH PRASAD is an assistant professor in the department of MIS and decision sciences at the University of Daytan in Ohio.