  Software Cost Estimation with resounding reliability,productivity and
development effort is a challenging and onerous task. This has incited the
software community to give much needed thrust and delve into extensive research
in software effort estimation for evolving sophisticated methods. Estimation by
analogy is one of the expedient techniques in software effort estimation field.
However, the methodology utilized for the estimation of software effort by
analogy is not able to handle the categorical data in an explicit and precise
manner. A new approach has been developed in this paper to estimate software
effort for projects represented by categorical or numerical data using
reasoning by analogy and fuzzy approach. The existing historical data sets,
analyzed with fuzzy logic, produce accurate results in comparison to the data
set analyzed with the earlier methodologies.
