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:
- What are the main causes of delays in software projects?
- What are the effects of project delay and cost overrun on software
projects?
- What is the role of cost estimation models in overcoming project
delays and cost overruns?
- OBJECTIVES OF THE STUDY
The objectives of the study can be reviewed as follows:
- 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.
- Define the role of cost estimation models in overcoming project delays
and cost overruns in software projects.
- 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