Pricing via functional size

A case study of 77 outsourced projects

Report (2014)
Department
Software Technology (EEMCS) (TU Delft)
Copyright: © 2014 The Author(s) . Software Engineering Research Group, Department of Software Technology, Faculty of Electrical Engineering, Mathematics and Computer Science, Delft University of Technology
Software Economics Continuous Improvement FSM-pricing Functional Size Measurement Software Pricing
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Published Date

30-09-2014

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Source:

Technical Report Series TUD-SERG-2014-012

ISSN:

1872-5392

Faculty

Electrical Engineering, Mathematics and Computer Science

Department

Software Technology

Abstract

A medium-sized west-European telecom company experienced a worsening trend in performance, indicating that the organization did not learn from history, in combination with much time and energy spent on preparation and review of project proposals. In order to create more transparency in the supplier proposal process a pilot was started on Functional Size Measurement pricing (FSM-pricing). In this paper we evaluate the implementation of FSM-pricing in the software engineering domain of the company, as an instrument useful in the context of software management and supplier proposal pricing. We found that a statistical, empirical, evidence-based pricing approach for software engineering, as a single instrument (without a connection with expert judgment), can be used in distributed environments to create cost transparency and performance management of software project portfolios