Software Rates vs cost per Function Point: a cost analysis of 10.000 software projects from 8 large clients

by D. Castelo, R. De La Fuente

The implementation of productivity models helps in the understanding of Software Development Economics.  Up until now, this has not been easy to understand. Most organizations believe that the only way to achieve improvements is by lowering software rates.

The presentation illustrate how the relationship between software rates and cost per function point differs from what is expected.  This is achieved by using  statistical data, from large multinational clients.  The conclusion is that excessive pressure on software rates destroys its concept in outsourcing processes.

The study results also lead to considerations regarding the management of software development activity.  This is from both the client’s and the software provider’s perspectives.

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