How to do an IT project estimation?

Project estimation is the process of predicting the amount of time and money and resources it will take to complete a project. The project estimation should be done before making a decision about cooperation - it takes deadlines, resources, tools, and potential risks into account. After receiving an initial estimation, the Client can make a choice, if he wants to cooperate with this software house.

When estimating a project, it's important to have a solid understanding of the requirements. This includes understanding the scope of the project, as well as what needs to be done and what doesn't, how many people will be needed to succeed (IT specialists, project managers, business analysts, UX/UI Designers) and what kind of skills should they have. You also need to know how much time you have to complete the project because it determines other conditions.

First and foremost, it allows you to accurately assess whether or not the project is feasible. It also helps you set realistic expectations for the client, and makes it easier to manage the project once it gets underway.

In addition, accurate estimation helps ensure that the project is completed on time and within budget and expected quality. This can help avoid costly overruns and help keep the project on track.

Making an accurate estimate for an IT project takes time and effort, but it's well worth the effort in the end. By following the tips outlined in this article, you can improve your chances of making an accurate estimate for your next IT project.

Remember - both, your potential Client and you need the project estimation, to make a decision, so don’t ignore this step! Before investing in any project, each party must consider if the costs are worth it, or not.

There is no one-size-fits-all answer to this question, as the answer will vary depending on the software house and the project. However, usually, project estimation is a paid service. This means that the software house will charge for their time and effort in estimating the time and cost of the project.

Fortunately for you, in Spinbits, IT project pre-estimation is completely free! Why is that? Customers have to compare dozens of offers from different software houses. We’re sure of our abilities and potential, so we don’t make money on offers. The quality of previous projects we made speaks for itself, so we believe that customers trust us and believe in our work. Our experience has shown that 75% of customers whom we make estimations for, decide to start cooperation with us! Join the group of our satisfied Partners, and fill in the form to receive a free project estimation!

There are different elements that decide about the price of an IT project:

• Complexity - the complexity of the software that will be developed
• Technology - the technology that will be used to develop the project
• Market research - if your industry is not that common and popular, analysts and the project team should do market research, to find out the specifications and insights from this sector
• Time - the time that is required to complete all the tasks in the project
• Schedule - time frames that are required by the customer, when to start, when to finish the project, dates of milestones, and deadlines that have to be met
• Human resources - the number of IT specialists that have to work on the project. Their price depends on their qualifications and years of experience.
• Project management - to be sure that the project will be conducted professionally, a project manager should keep an eye on it, to ensure that everything is being delivered.
• Meetings and workshops - regular meetings are the key to successful cooperation with a software house. During meetings, the PM should inform you about each reached milestone,
• External integrations - cost of external tools and the level of complexity of these integrations.

Unfortunately, accurately estimating time and cost for an IT project is often easier said than done. There are many factors that can impact the time, cost and quality of a project, including the size and complexity of the project, the skillset of the team, and the availability of resources.

Below, you’ll find 5 steps of making project estimation:

1. Make sure you have a clear understanding of the project requirements.

The first step in any estimation process is to make sure you have a clear understanding of what the project entails. This means taking the time to sit down with the client and going over the project requirements in detail. What’s more, a business analyst should do market research to better understand the customer's needs.

2. Break the project down into smaller tasks.

Once you have a good understanding of the project requirements, the next step is to break the project down into smaller tasks. This will make it easier to estimate the time and cost for each individual task.

3. Choose the appropriate technology

This step of estimating should be consulted with the CTO of a software house. He’s got all the technology in his little finger, so he’ll know which one to choose. Remember, there are different types of programming languages and frameworks for backend development and frontend development, and programs for UX/UI Designers.

4. Use software estimation tools.

There are a number of software estimation tools available that can help you get a more accurate estimate for your IT project. These tools can help you take into account factors such as the size and complexity of the project, the skillset of the team, and the availability of resources.

5. Get input from the team.

The final step in estimating the time and cost of an IT project is to get input from the team. This includes both the development team and the client. The more information you have, the better able you will be to make an accurate estimate.

Estimating time and cost for an IT project can be a challenge, but it is possible to get a more accurate estimate by following these steps. By taking the time to understand the project requirements, breaking the project down into smaller tasks, and using software estimation tools, you can get a better sense of what the project will entail. In addition, getting input from the team can also help you refine your estimate.