Question

Explain two factors that may affect the IT project cost estimation using your own words. Support your answer with examples.

Answer 1

Ans ) There are many factors on which the IT project cost estimation depends. Two of them are: -

1. Time: - One of the most important factor for IT project cost estimation. It can take anywhere from a few hours for a really simple product to something more complex and beneficial for an enterprise, which could take months.A common misconception is that the more people who are working on the project, the faster it will be completed but that is not always the case. Development needs to happen in a certain order. For example, a simple software like a game can take variable working hours depending upon the conditions, the amount of work power involved, how complex the game is. A simple game like First person shooter can take less amount of time if not much complexities are involved but if the same game is requested by some other firm which demands greater details and specifications, then in that case it can take a considerable amount of time for its build.

2. Number of developers: - The price is most often determined by how many staff members are working on the project. A project that has two people on the team will cost less than one that has five or more. However, the more people on the team, the more specialists there will be looking over the product to help make sure it gets done right.   For example, considering the same example that was used for explaining time factor, it would become easy to make a complex game with more number of developers rather than a small team, but considering the fact that the involvement of more and more developers will increase the cost of the project.
3. Some more factors are Location, Extras, Scope, etc.