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New development role ratios for in-house development
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Indexing the Charge-Out Rate for Inflation and Currency Movements
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Global software development projects, the impact of financial crises on different economies, and development teams spread across continents, all make predicting costs for projects with long durations a more complex task If the project duration is estimated to be more than one year, then it is recommended that you factor the predicted inflation rate for the country where the employees are paid into the charge-out rates Compound for each of the successive project years If the currency that is funding the project is different from the currency being used to pay the project team, then currency projections may also need to be taken into consideration when calculating the charge-out rates
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So far we have concentrated on the costs that are associated directly with the project team that is developing the software There are other costs that lie outside the development team; these are discussed in the following sections
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Costing Activities Outside Project Development Tasks
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When converting functional size to effort using the appropriate ISBSG PDR in hours per function point, it is important to understand exactly which project activities the effort hours correspond to in order to understand what proportion of the total project costs the PDR-based cost estimate is predicting and what has been omitted The hours collected by the ISBSG and used to calculate industry PDR values are specifically for the following activities in the software development life cycle, as shown in Table 15-1 Any effort estimates and their corresponding cost estimates derived from the PDR can cover only the software development activities shown in Table 15-1, and consequently these exclude other fixed price, and time and materials costs, to purchase other projectrelated items that need to be considered in the project budgets, such as: Hardware/networks Software-licensing fees/software product costs Software utilities/development tools Strategic planning Business process reengineering Data migration strategy/data conversion Planning and implementation of change management strategies
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estimating project Cost Using ISBSG Data
Possible Activity Components Preliminary Investigations Overall Project Planning Feasibility Study Cost Benefit Study Project Initiation Report Terms of Reference Systems Analysis Requirements Specification Review & Rework Requirements Spec Architecture Design/Specification Review & Rework Architecture Spec Functional/External Design Create Physical/Internal Design(s) Review and Rework Design(s) Package Selection Construct Code & Program Software Review or Inspect & Rework Code Package Customization/Interfaces Unit Test Integrate Software Plan System or Performance Testing System Testing Performance Testing Create & Run Automated Tests Acceptance Testing Prepare Releases for Delivery Install Software Releases for Users Prepare User Documentation Prepare & Deliver User Training Provide User Support
Specify
Design
Build
Test
Implement
Table 15-1
ISBSG Activities Where Effort Is Recorded for PDR
Training requirements System deployment to multiple sites Internal client effort for example, the execution of UAT (user acceptance testing) Enhancement of external systems to provide interfaces that are not included in this project s functional size scope Decommissioning of existing or interim systems
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If your project will need to fund any of the preceding activities, then these will need to be costed separately and then added to the PDR-based cost estimates
Costing Effort Contributed by Personnel Not Included in the PDR
The PDRs published by the ISBSG typically only include the Level 1 Effort1 of the project development team, that is, the effort hours recorded by those people responsible for the delivery of the application under development The project development team includes those individuals who specify, design, build, test, and implement the software Consequently, the effort established using the PDRs typically does not include the effort hours expended by the: IT administrative and support people who enable the project development team to do their job; that is, it excludes the operations people on hardware support, database administration staff, and so on Business users or software users, that is, those individuals responsible for defining the requirements of the applications and sponsoring/championing the development of the application, acceptance testing the software, and actually using the software If the project budget is required to pay for the effort expended by these non development team members, then this will need to be estimated and costed separately from the effort costs derived from the PDR
Summary
The following steps detail the procedure to calculate project cost using the published PDRs: 1 Determine the functional size relevant to project scope (function points measured for each project component that is implemented using different cost drivers, for example, different platforms, languages, and so on) 2 Determine the most likely software delivered size for each component by predicting the percentage of likely scope creep caused by requirements changing and/or incomplete specifications For early estimates this may be as much as 30 percent growth on measured size (Function Points Measured % growth = Project Predicted Delivered Size)
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