Every software business has to be able to budget and plan its software development projects realistically. Since software projects are usually fraught with uncertainty, they inherently involve planning risks right from the start. Consequently, it is important to manage cost-related risks in order to monitor them and implement adequate contingency plans when a crisis occurs. Since not all projects are equal, it is important to identify the specific factors (cost drivers) that have a positive or negative influence on productivity. Thus, the use of appropriate cost estimation approaches does not only contribute to accurate project planning and successful risk management, but also to improved software processes and overall organization maturity.
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