Project Cost Estimation (I)

Dear Readers,

I have been sharing my many things related to Cloud, Big Data and other technical stuffs via my blog. In this post, I would like share my view on Project cost estimation. 

Almost all the Computer Science and IT students might have read about Project cost estimation in Software Engineer. And almost many might have read Software Engineering by Roger Pressman. When I did my Under graduation, I considered that book as bible for Software Engineering. 

Yes, still I accept that book as bible for Software Engineering. 

But, I feel there is something more in project cost estimation. Some practical things too involve in project cost estimation. Let me share how actually project cost has been estimated in an organization on various factors.

Human Resource 

Cost spent on Human Resources is one of the major factor in estimating the project cost.  I have listed few things, which no author has narrated in their book.Below are the things which is being spent for the human resources.

1. Wage(s)

2. Travel Cost

3. Personal Insurance

4. Allowances

5. Entertainment ( Team Outing, Lunch, Dinner, Cultural, Sports, Clubs etc.,)

6. Corporate Gifts ( Bag, T-Shirt, Mug etc.,)

7. Seat Cost( Cost Spent on Allocating seat to the employee)

8. Food and Other Amenities cost ( Coffee, Tea, Xerox, Stationery, etc,)

9. Infrastructure( Air conditioner, Electricity, maintenance)

10. Leave cost( Especially, Maternity Leave cost)

11. Training Cost( Academy related cost)

12. Internal Operation Cost( HR Department, Finance department, Academy etc.,)

13. Social Networking Cost

Software and Hardware

Software and Hardware are the major cost consuming one for a project. Amount spent on Hardware resources and other infrastructure requirements are plenty. Below are the major infrastructure cost.

1. Computer Cost

2. Internet Usage cost

3. Telephone usage cost

4. Other Hardware cost(Printer, Scanner, Network Devices)

5. Wi-fi Cost

6. Server Cost.

7. Cloud cost(Everyone now spend on cloud)

are the major cost spent on Hardware(Infrastructure)

When it comes to Software below are the major cost spent on Software

1. Operating System cost

2. Basic Software cost( Office, Browser, Skype, etc.,)

3. Working Tool License cost ( MySQL, Microsoft Visual Studio, etc.,)

4. Working Tool maintenance cost ( Cost spent on supporting the tool)

5. Other learning tools

6. Internal Application Cost

These are some of the major hardware and software cost involved in estimating the project cost. There are other few metrics that has been measured in project. 

Let me share other costs involved in project cost estimation in my next post.

Thank you

Keep reading my other blog too

rajendranpraveenkumar.blogspot.in

Regards

Praveen

Software Updates October 14, 2016