Cost Estimation in IT Project Management

Running head: COST ESTIMATION IN IT PROJECT MANAGEMENT
COST ESTIMATION IN IT PROJECT MANAGEMENT
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COST ESTIMATION IN IT PROJECT MANAGEMENT
COST ESTIMATION IN IT PROJECT MANAGEMENT
Irrespective of the industries and size of the project, there are certain constrains that needs to be
consider before the project is undertaken. Cost estimation is definitely one of the prime
constrains that needs to be address efficiently (Pinto , 2015).
Cost estimation involves the process of making an estimation regarding the cost of labor,
material, infrastructure and the tools that should be incorporated to complete the project
undertaken (Mislick & Nussbaum, 2015).
It is definitely one of the major responsibilities that project management must control with
expertise. It can be considered as a driving force or better to say the impending factor that
decides the future performance of the project (Pinto , 2015). Therefore, it is not difficult to
realize the importance of the implementing proper cost estimation technique for managing a
project with success.

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COST ESTIMATION IN IT PROJECT MANAGEMENT
DIFFERENCE BETWEEN ESTIMATION AND TARGET OR GOAL :
The words estimate is rather confusing and it is easily mistaken with target or goal. Estimation
requires realistic assessment which involves facts related to the work previously conducted, as
well as necessary resources , constrains and the environment closely associated with the project
of interest. Whether Target or Goal can be attributed to the desired outcome or something that is
committed or
promised
beforehand (Chih &
Zwikel , 2015 ).
The author
mentions that after
the work is
completed or result
is obtained the estimation can be compared to the set goal or target to find necessary changes
related to the origins of cost like work resources, workforce so that the modification can be done
effectively. It is important to perform the estimation independently without any reference to the
target and goal for better results. Once the outcome is revealed, it can then be altered by making
necessary changes in the resources to meet the expectation of the set target as perfect as possible,
but not before that.