Software Development

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Software Cost Estimation

Most of us put a lot of effort into cost estimation in our personal lives. When considering a new job offer, most of us look closely at the cost of living in a different area; likewise, when shopping for a new car, most people check with several dealerships to find the best deal. The business world is constrained by the same budget factors. These components drive up the cost of software:

. The chosen source code language—Using an obscure or unpopular language will most likely drive up costs.
. The size of the application—The size or complexity of the application has a bearing on cost. As an example, the level of security needed is something that will affect the complexity of a given application. This also has a direct correlation to the scope of the project.


Systems development methodology

The SDLC is designed to produce high-quality software in a structured way that minimizes risk. The traditional approach to SDLC is the waterfall model, which contain 6 step of implementation. ISACA uses a modified model that has five primary phases and the post implementation phase.

Phase 1: Feasibility
In this step, the feasibility of the project is considered. The cost of the project must be discussed, as well as the potential benefits that it will bring to the system’s users. A payback analysis must be performed to determine how long the project will take to pay for itself. In other words, the payback analysis determines how much time will lapse before accrued benefits will overtake accrued and continuing costs. If it is determined that the project will move forward, the team will want to develop a preliminary timeline. During the feasibility phase, everyone gets a chance to meet and understand the goals of the project.


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