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Activity Driven Budgeting of Software Projects

Author

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  • Alexander Baumeister

    (Saarland University, Germany)

  • Markus Ilg

    (Vorarlberg University of Applied Sciences, Austria)

Abstract

There are numerous forecast models of software development costs, however, various problems become apparent in context to practical application. Standardized methods, such as COCOMO II have to be calibrated at an individual operational level on the basis of the underlying database. This paper presents a new activity based approach that is based on business specific cost data that can be easily integrated into existing management accounting systems. This approach can be applied to software development projects based on the unified process in which activity driven budgeting promises several advantages compared to common tools in use. It supports enterprise specific cost forecasting and control and can be easily linked with risk analysis. In addition to the presentation of a conceptual design model, the authors present a framework for activity driven budgeting and cost management of software development projects combined with concrete implementation examples.

Suggested Citation

  • Alexander Baumeister & Markus Ilg, 2010. "Activity Driven Budgeting of Software Projects," International Journal of Human Capital and Information Technology Professionals (IJHCITP), IGI Global, vol. 1(4), pages 14-30, October.
    • Handle: RePEc:igg:jhcitp:v:1:y:2010:i:4:p:14-30
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