3 aalmalaise@kau.edu.sa
Abstract Background: Given the enormous impact that the software industry has on so many facets of our lives today, software projects are extremely important. Digital transformation is driven across industries by software developments. They facilitate the utilisation of technology by organisations to optimise operations, augment productivity, and provide inventive products and services. To be competitive and adjust to the quickly changing market dynamics of today’s world, companies must undergo digital transformation by making full use of software projects.Objectives: The main aim of the current study is to determine the main causes of project delay and cost overrun in software projects, identify the effects of project delay and cost overrun on software projects, and define the role of cost estimation models in overcoming project delays and cost overruns in these projects.Results and conclusions:The researcher reviews the literature on causes behind delay and cost overrun and describes the role that can be played by cost estimation models in that process. In light of the reviewed literature, the researcher reaches certain recommendations for the software industry.KEYWORDS Project Delay - Cost Overrun - Software Industry - Cost Estimation Models
INTRODUCTION
Software is generated using programming languages, which can take several forms. To be successful, a software project must be finished on schedule and under budget, with all features and functionalities as originally stated. However, some software projects fail for a variety of reasons, and some are even terminated before they are done (Kamuni, 2015). The delay in software projects is considered one of the most important causes of companies incurring high costs and losses that may cause the failure of many systems. Timely project delivery is crucial to avoid negative circumstances associated with delay (Lopes & Mañas, 2013). Project delays have negative impacts on cost overruns, project quality, and stakeholders’ satisfaction (Khalid et al., 2022). Accurate time, effort, and cost estimation are crucial issues for a software project’s success (Chirra & Reza, 2019). Prediction of a software project’s development effort, timeline, and cost is the goal of estimation to avoid any delay (Laqrichi et al., 2015; Leung & Fan, 2005; Mahboob et al., 2017). That is to say, Cost overruns and timing delays in software development are regularly occurred. Software cost estimation models and software complexity metrics measures are two prevalent methodologies used by the industry to decrease the recurrence of these difficulties.
STATEMENT OF THE PROBLEM
To determine how much time and effort software projects will take, cost estimation of software projects is a crucial activity in the software process development cycle. However, there are very few relevant studies evaluating software cost estimation in developing nations, especially in the Kingdom of Saudi Arabia. On one hand, Saudi Arabia is one of the nations that has used cost estimation techniques (Gumaei et al., 2015), which means that the current investigation into the causes of inaccurate cost estimations of projects in this country’s software development companies is spurred by this issue. On the other hand, information and communication technology (ICT) projects, especially software projects still have high failure rates in the Kingdom of Saudi Arabia (Ebad, 2018).
Some researchers confirm that 44% of software projects cost more and take longer than anticipated (Laqrichi et al., 2015). The problem lies in the fact that little focus has been placed on how project management techniques and instruments have affected the frequency of project delays in the Kingdom (Alotaibi et al., 2015). In addition, there is a paucity of studies that have dealt with the use of software project management tools in Saudi Arabia (AlMobarak et al., 2013). Despite the use of the most up-to-date tools and techniques, numerous studies show that software projects still fail (Mohabuth, 2017). Software project cost estimation is a crucial management task. Despite research endeavours, the precision of estimation tools does not appear to be improved (Magazinius & Feldt, 2011). Given the prevalence of software in today’s products, the large proportion of software projects that fail to meet their deadlines, and the importance of product launches for the financial viability of the product, further research into the problem is needed (Rahikkala et al., 2016).
QUESTIONS OF THE STUDY
The questions of the study can be reviewed as follows:
  1. What are the main causes of delays in software projects?
  2. What are the effects of project delay and cost overrun on software projects?
  3. What is the role of cost estimation models in overcoming project delays and cost overruns?
  4. OBJECTIVES OF THE STUDY
The objectives of the study can be reviewed as follows:
  1. Determine the main causes of project delay and cost overrun in software projects.
  2. Identify the effects of project delay and cost overrun on software projects.
  3. Define the role of cost estimation models in overcoming project delays and cost overruns in software projects.
  4. SIGNIFICANCE OF THE STUDY
Cost estimation is still a difficult problem that motivates scholars to look into and try out different strategies and approaches. To efficiently manage project budgets, foresee risks, make educated decisions, and control costs, companies can benefit greatly from the insights and guidance offered by cost estimation models. They provide the cornerstone for proactive cost management, which helps businesses better handle project delays and overruns. In the current study, the researcher will try to shed light on the causes of project delay and cost overrun and how to overcome these challenges using cost estimation models.
DEFINITIONS OF THE STUDY