  Estimation is one of the most critical areas in software project management
life cycle, which is still evolving and less matured as compared to many other
industries like construction, manufacturing etc. Originally the word
estimation, in the context of software projects use to refer to cost and
duration estimates only with software-size almost always assumed to be a fixed
input. Continued legacy of bad estimates has compelled researchers,
practitioners and business organizations to draw their attention towards
another dimension of the problem and seriously validate an additional
component, viz. size estimation. Recent studies have shown that size is the
principal determinant of cost, and therefore an accurate size estimate is
crucial to good cost estimation. Improving the accuracy of size estimates is,
therefore, instrumental in improving the accuracy of cost and schedule
estimates. Moreover, software size and cost estimates have the highest utility
at the time of project inception, when most important decisions (e.g. budget
allocation, personnel allocation, etc). are taken. The dilemma, however, is
that only high-level requirements for a project are available at this stage.
Leveraging this high-level information to produce an accurate estimate of
software size is an extremely challenging and high risk task. This study
acknowledges the presence and effect of risk in any software estimate and
offers pragmatic strategies for risk mitigation.
