The Impact of an Agile Methodology on Software Development Costs

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Technical Reports (CIS)
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With the emergence of the Internet, software development has become an integral part of almost every facet of business today. Because consumers have a surmounting demand for immediacy and convenience, companies are pressured to add web-based services to their product offerings. Therefore, an increasing number of resources are being allocated to the development of profitable software to meet customer needs. Because companies desire to maximize their profits, an efficient allocation of these resources is necessary to minimize costs. This can be achieved by implementing a process model that best converts their resources to quality products. Agile software development is a relatively new framework aimed at reducing risk and production costs. It is based on iterative development and continuous feedback from all stakeholders throughout the development cycle. The switch to an agile process model from a traditional waterfall process model can reduce the risk associated with producing a large-scale software application by decreasing lead times and increasing team morale and productivity. My literature review and initial findings suggest that firms across industries can benefit from incorporating some degree of agility in their development process.

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2012-01-01
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University of Pennsylvania Department of Computer and Information Science Technical Report No. MS-CIS-12-09.
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