Factors Affecting Cost And Time Overrun In It Projects In Ethiopia: The Case Of Cybersoft Software Company, Addis Ababa, Ethiopia
No Thumbnail Available
Date
2018-06-14
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Addis Ababa University
Abstract
The aim of this paper is to analyze the factors that affect cost and time overrun of software projects in Ethiopia, particularly taking the case of Cybersoft Software Company. The methodology that was used here is comparative case study. Two case projects were selected based on their cost and time significance. As a data collection method, questionnaires, interviews and company documents were used. The key informants were software developers who were engaged in the development of those projects and management bodies of the company. A total of 15 questionnaires are collected from the software developers and an interview was held with the CEO of the company. The finding from the research showed that the first project suffered cost overrun of 20% and the time showed an overrun by one year. In the case of the second project the cost showed an overrun by 35% and time overrun by one and half years. According to the respondents, unrealistic schedule, scope change, incomplete and shifting requirements and specifications, newness of technology, project complexity and unfeasible cost estimates are the major factors which highly affected both projects. Moreover, the results showed that software companies faced various challenges to stay in the industry. The company argued that the government doesn’t give enough attention for the IT industry. Since most governmental organizations outsource their projects for foreign companies, it has been very difficult for the local software companies to stay in the market. According to the research, the cost and time overrun of the projects had a significant effect on the supplier, the client and the overall industry. The supplier faced financial loss and delay in returns in investment. From the clients’ side, it creates lack of satisfaction and affects the performance of their business. It has also an adverse impact on the development of the ICT industry as a whole. In order to minimize the cost and time overrun in software projects, some recommendations are given by the researcher. Majorly careful planning is needed for a more accurate and realistic schedule, scope should be designed very carefully, ample time should be given to design requirements and specification and thorough discussion should be made between the supplier and the client and finally government support is very important for the development of the industry.
Description
Keywords
Project time overrun, Project cost overrun, Software, Cause, Effect