The Community for Technology Leaders
RSS Icon
Subscribe
Issue No.03 - May/June (2009 vol.26)
pp: 79-84
Magne Jørgensen , Simula Research Laboratory
ABSTRACT
Software development companies often produce overoptimistic cost estimates, which could lead to delivery problems for the clients and the providers. Clients can avoid selecting overoptimistic providers via their control of the bidding process and by following the strategies in this article. Conversely, the author's suggestions also help software providers identify bidding rounds in which it's likely that they'll win only if they're strongly overoptimistic.
INDEX TERMS
cost estimation, bidding processes, provider selection, software acquisition
CITATION
Magne Jørgensen, "How to Avoid Selecting Bids Based on Overoptimistic Cost Estimates", IEEE Software, vol.26, no. 3, pp. 79-84, May/June 2009, doi:10.1109/MS.2009.71
REFERENCES
1. M. J⊘rgensen and K. Mol⊘kken-Østvold, "Reasons for Software Effort Estimation Error: Impact of Respondent Role, Information Collection Approach, and Data Analysis Method," IEEE Trans. Software Eng., vol. 30, no. 12, 2004, pp. 993–1007.
2. M. J⊘rgensen and S. Grimstad, "Overoptimism in Software Development Projects: The Winner's Curse," Proc. 15th Int'l Conf. Electronics, Communications, and Computers (CONIELECOMP 05), IEEE CS Press, 2005, pp. 280–285.
3. M.H. Bazerman and M.A. Neale, Negotiating Rationally, Free Press, 1992.
4. A.L. Lederer and J. Prasad, "Information Systems Software Cost Estimating: A Current Assessment," J. Information Technology, vol. 8, no. 1, 1993, pp. 22–33.
5. M. J⊘rgensen and G. Carelius, "An Empirical Study of Software Project Bidding," IEEE Trans. Software Eng., vol. 30, no. 12, 2004, pp. 953–969.
6. J. McDonald, "The Impact of Project Planning Team Experience on Software Project Cost Estimates," Empirical Software Eng., vol. 10, no. 2, 2005, pp. 219–234.
7. J. Kruger and D. Dunning, "Unskilled and Unaware of It: How Difficulties in Recognizing One's Own Incompetence Lead to Inflated Self-Assessments," J. Personality and Social Psychology, vol. 77, no. 6, 1999, pp. 1121–1134.
8. G.E. Bryan, "Not All Programmers Are Created Equal," Proc. 1994 IEEE Aerospace Applications Conf., IEEE Press, 1994, pp. 55–62.
9. M. J⊘rgensen and S. Grimstad, "Avoiding Irrelevant and Misleading Information When Estimating Development Effort," IEEE Software, vol. 25, no. 3, 2008, pp. 78–83.
10. B. Poerter-Roth, Request for Proposal: A Guide to Effective RFP Development, Pearson Education, 2002.
11. J.R. Corrigan and M.C. Rousu, "The Effect of Initial Endowments in Experimental Auctions," Am. J. Agricultural Economics, vol. 88, no. 2, 2006, pp. 448–457.
12. M. J⊘rgensen, "The Effects of the Format of Software Project Bidding Processes," Int'l J. Project Management, vol. 6, no. 24, 2006, pp. 522–528.
13. M. J⊘rgensen, "Individual Differences in How Much People Are Affected by Irrelevant and Misleading Information," Proc. 2nd European Conf. Cognitive Science, Hellenic Cognitive Science Soc., 2007, pp. 347–352.
14. M. J⊘rgensen and D.I.K. Sj⊘berg, "Impact of Effort Estimates on Software Project Work," Information and Software Technology, vol. 43, no. 15, 2001, pp. 939–948.
15. T. Kern, L.P. Willcocks, and E. van Heck, "The Winner's Curse in IT Outsourcing: Strategies for Avoiding Relational Trauma," California Management Rev., vol. 44, no. 2, 2002, pp. 47–69.
6 ms
(Ver 2.0)

Marketing Automation Platform Marketing Automation Tool