| Most software projects fail completely or partial | | | | should require less training and well defined input. The |
| failures because a small number of projects meet all | | | | estimation should be accurate i.e., it should be capable |
| their requirements. These requirements consist of | | | | of analyzing the various parameters and come up |
| cost, schedule, quality, or objectives. The failure rate | | | | with accurate cost estimates. |
| of software projects are between 40% - 70%. | | | | Talking about the other factors risk management is |
| There are several areas or causes because of which | | | | also an important factor for software project failure |
| software project failure occurs: | | | | if it is not managed effectively and timely. The |
| The first and foremost serious cause for software | | | | necessary steps should be taken in the present itself |
| failure is the inability to estimate with accuracy the | | | | to deal with any uncertain situation in the future. Risk |
| cost, resources and schedule which are necessary for | | | | management means dealing with a concern before it |
| software projects. | | | | becomes a crisis. |
| For previous years cost and schedule estimation | | | | The first one is risk identification; in this the project |
| techniques are been used with mixed feeling because | | | | manager has to identify the areas of risk and how it |
| of restrictions of the assessment models. This failure | | | | can effect the development of the project. Risk can |
| on estimations can be due to lack of software | | | | be of technical nature or non technical. Project |
| development process understanding and the effect | | | | managers needs to be aware of both the risks. |
| of that particular method used in the concern project | | | | The next is the risk analysis which is the process of |
| plan, schedule and cost estimates. | | | | examining the project results and applying the |
| There are several reasons because of which N | | | | techniques to lower the risk. After the completion of |
| number of tools can return to wrong estimate. The | | | | the risk analysis the first identified risks are |
| first reason can be: | | | | categorized. At this point the risks are classified as |
| The choice of the right tool of estimation. If the tool | | | | the positive and negative risk. |
| is incapable of handling the input then this can come | | | | Then after comes the risk prioritization, this step is |
| up with the wrong estimate and hence software | | | | to first focus on the most severe risk. These risk |
| project failure. | | | | factors can worked from time to time so that the |
| The cost estimation tool should be customizable | | | | final project out come is free of risk. Most of the |
| according to the need of the organization so that it | | | | project management team lacks in risk prioritization |
| can be customized according to the need of the | | | | which often results in the form of crisis. And lastly |
| organization and the past project data. | | | | comes the risk control which is a pure intuitive |
| The cost estimation tool which is been selected | | | | process and depends on the experience of project |
| should be easy to use and learn which means it | | | | management team. |
| should include help and user interface facilities. It | | | | |