Function Points as a tool for the appraisal of software

Software valuation can be a complex process and there are several reasons for this. The problem arises when there is this need and the organization does not have the means to determine the value objectively and considering the uncertainty inherent to this activity. A solution based on the Analysis of Function Points associated with the "Cone of Uncertainty" of COCOMOII is the theme of this article.

Publication

IFPUG Metric Views | Vol. 09th | Issue 1

Date

January / 2015

author

Curtis Graham; William Simões; Carlos Vazquez

Why it's important

Get an estimate of the value of the software in monetary terms for applications such as the contribution of the software as an asset of the organization; its sale; the analysis of the value of third-party development; decision support in IT management as in make-or-buy analysis; cost and term assessment and risk management.

When it applies

The inclusion of the software as a equity asset; the sale of the software to another organization, confirm the evaluation of a contracted third party organization; make-or-buy analyses; management, among other applications related to cost and duration.