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