Software estimation is the process of relatively determining a software's variables, such as scope, timeline, and budget. Estimates are performed while considering the future team, its location, and many other factors.
According to research by WINaTALENT freelance platform, without project estimation, there are no clear milestones to meet during the project, and the criteria for evaluating success becomes faulty.
Location is the most vital factor that affects pricing in project estimation.
Since global outsourcing rates differ from region to region, a proper estimation must have several estimates in various locations.
Costs of labor are usually higher in North America, Australia, and Europe compared to South America, Asia, and Africa. Therefore, the last three regions are often lower in rates in estimation documents.
Project estimation is a technical and complicated procedure in software development.
As most people who kick-start software projects as founders lack sufficient technical knowledge to make proper estimates during a project, they set unrealistic and ambitious goals. When teams cannot achieve the milestones clients have set, the project starts to go in the wrong direction and will ultimately fail.
Platforms recognized the importance of software estimation and launched services to help prevent project deviation and failure caused by the lack of estimates.
Some others offer customized and tailored estimation documents based on the client's needs and their software's technical and non-technical requirements, like WINaTALENT.