Information System Cost Estimating: A Management Perspective

Information systems cost estimating is an important management concern. An estimate helps to cost justify individual proposals, to schedule their development, to staff them, to control and monitor their progress, and to evaluate estimators and implementers. Through a case study of a chemical manufacturer, the investigation reported in this article facilitates a better understanding of the management of the cost estimating process. Interviews with 17 information systems managers and staff members, and four user mangers confirm that the practice of cost estimating can be viewed in terms of both a Rational Model and a Political Model, can identify impediments to accurate estimating, and can provide suggestions and warnings for managers and future researchers.