Agile Development Methodology: Impact On Project Cost and Time
Agile Development Methodology: Impact On Project Cost and Time
Science (IJAEMS)
Peer-Reviewed Journal
ISSN: 2454-1311 | Vol-10, Issue-7; Nov-Dec, 2024
Journal Home Page: https://ijaems.com/
DOI: https://dx.doi.org/10.22161/ijaems.107.16
Received: 14 Nov 2024; Received in revised form: 12 Dec 2024; Accepted: 19 Dec 2024; Available online: 27 Dec 2024
Abstract— The study investigates the impact of cost and time based on chosen development methodology
specifically agile software development. Agile software development is being used widely in maximum IT
companies. The sole purpose of this research is to study the impact of cost and time on software projects
which were developed using agile frameworks. The concept of the study uses quantitative descriptive
approach in which all respondents were given a survey of closed-ended questions to determine the impact of
cost and time on software projects using agile software development. The gathered information was
statistically analyzed using Statistical Package for the Social Sciences (SPSS) tool. Validity test was verified
by panel of experts, and reliability was checked by Cronbach’s alpha of internal consistency. A number of
analyses were performed on the data including normality testing, correlations and regression analysis.
Keywords— Agile Software Development, Impact of Cost, Time impact, Software development cost and
time impact.
not adapt well to changing customer requirements, putting technically difficult to accomplish in practice. And,
the project at significant risk. My research examines the without a doubt, there will be 'unknowns' with the project
impact of agile approaches on these risks and costs. Agile that will only be discovered when they occur. Furthermore,
uses an iterative development methodology, where whether you're a consumer, a developer, or a user, no two
features are developed in 2–4-week increments. As a people are same. We arrive with our own set of
result, all three major components of software information, experiences, values, expectations, risk
development are repeated during the development cycle. aversion, and adaptability. Senior engineers are
Small features are generated every few weeks and can be accustomed to writing high-quality software; but, building
easily modified, allowing for changing user requirements. amazing software solutions may be a much more
The result is lower risk than the waterfall approach and challenging task for all parties involved.
lower capital costs for software projects in agile This study aims to examine the impact of the cost and time
frameworks. Because this method is highly adaptable and on project delivery using agile process model.
responsive to continuous input, the product almost
PROBLEM STATEMENT
perfectly matches consumer expectations, resulting in
greater satisfaction and demand, as well as higher Agile methodology is being used extensively in various
profitability. However, only good implementation of agile organizations, but most of them face problem that how
approaches, or a good degree of agility, can lead to such long and how much cost it will take to deliver the project,
low software development costs. My research examines this study was aimed to explore the critical factors that
the pros and cons of using agile models to assess cost and impact project time and cost using the agile methodology.
time impacts on software projects. We begin by examining SCOPE OF WORK
the broad expert consensus on the limitations of both
In order to find out the factors that impact project time and
traditional and agile methodologies and the benefits of
cost using agile methodology. The study is limited to
agile process models. Then, we explore the main areas of
software projects and in terms of methodology it is limited
cost, quality and customer satisfaction that are impacted
to agile software development. We picked 30 samples from
when moving from a traditional method to an agile one.
IT industry of Islamabad and hence this study is covering
The term agile methodology refers to processes that are only companies working in Islamabad. Companies
developed and tested throughout the software development selected for research also work for international clients and
lifecycle of a project. In contrast to the waterfall approach, have more than 100 employees.
the agile style of software testing runs both the
SIGNIFICANCE OF THE STUDY
development and testing processes simultaneously. Agile
refers to a software development methodology that The critical factors identified in this research would be
emphasizes customer satisfaction, team productivity, helpful for the other companies working on agile
continuous planning, and incremental deliverables, rather methodology to keep them in mind while checking the
than aiming to deliver everything at once at the end. impact of cost and time using agile methodology for any
project. They will likely face less issues in execution of
Agile focuses on keeping processes lean and delivering a
project if they take care of the identified factors and
minimum viable product (MVP) that goes through multiple
conclusions drawn in this study.
iterations before being finalized. Feedback is continuously
captured and incorporated, resulting in a more dynamic RESEARCH OBJECTIVES
process where everyone is working towards a common Following are the main objectives this research:
goal.
• Evaluate if team capability has impact on cost
PURPOSE and time of project.
Determining how long and how much it will take to deliver • To evaluate customer feedback and requirements
a new software product is one of the most difficult tasks in gathering as a major impact on project cost and
software development. Should it be that challenging? The time.
answer is a little more complex and difficult. • To measure the impact of agile methodology on
Estimating software expenses is tough by nature, and cost.
humans are notoriously terrible at forecasting absolute • To measure the impact of agile methodology on
outcomes. There are no two projects alike; each has its own time.
set of goals and a unique set of parameters that define its RESEARCH QUESTIONS
existence. What appears to be a simple problem on the RQ1 Does team capability impact on cost and time of
surface is sometimes considerably more difficult or project?
DATA ANALYSIS
DATA COLLECTION
Most data were received back from the respondents via
A few of the effective methods to gather data from a large online questionnaires as most IT staff prefer to use their
number of population and then apply different random screens and keep in the comfort of their work environment
sampling techniques upon it to extract out the desired so researcher also preferred this way to get the actual and
results. To test the research hypothesis and the research real results. Analytical study on collected data were
model, data is gathered through 3 IT companies of performed using the Statistical Package for the Social
Islamabad and 30 individuals participated in data Scientists (SPSS). A quantitative approach enables an
collection. Product owners, project managers, scrum investigator to investigate the relationship between
master, team leads and mangers with project costing variables. As there were a number of variables, both
knowledge and those who are responsible for project dependent and independent, in this study.
timelines have been consulted and their views has been
gathered through the questionnaires. This survey was
conducted on a voluntary basis with no undue pressure. All STEPS IN QUESTIONNAIRE DESIGN
the target respondents were given a standardized According to Dr. R. Venkitachalam’s “” and Linda Del
questionnaire as shown below: Greco, Walop W.Richard H McCarthy.
The steps in questionnaire design are as below:
Step 1: Background;
(a) Purpose and goal/objectives in Research
questions, hypothesis;
(b)Target audience / population sample.
Step 2: Conceptualization;
(a) Generate statements/ questions items i.e.
variables; Independent Variables (IV),
Dependent Variables (DV);
Here illustration of the Agile Process Model: this method there are three categories, with their
responsibilities as follows:
environment. This means that they are able to respond study the impact of agile software development on project
more effectively to unforeseen challenges and problems. cost and time. This research carryout detailed analysis of
Overall, agile methods provide a number of advantages factors impacting cost and time using agile software
that can help organizations achieve their goals faster and development approach.
with fewer risks.
INCREASED FLEXIBILITY
Agile methodology has been shown to lead to increased
flexibility. This is because agile encourages the use of
short, iterative cycles that allow for changes to be made
quickly and easily. As a result, projects are able to move
faster and achieve their objectives more quickly.
Furthermore, because agile is incremental, it is less risky
and allows for corrections along the way. This
methodology also leads to a better understanding of the
problem and results in better solutions.
CONTINUOUS IMPROVEMENT
Agile methodologies are designed to help organizations
achieve continuous improvement. According to the
National Institute of Standards and Technology, "Each Figure 3.1: Work flow diagram of how the research work
iteration of the agile methodology focuses on delivering was proceeded.
working software frequently, with a focus on customer
satisfaction." This approach encourages teams to
continuously assess their work and make necessary PHASE 2: ANALYZE THE ORGANIZATION AND
changes in order to improve the quality and efficiency of COLLECT DATA
their work.
Depending on the research that has been made during the
initial phase, to investigate the impact of software cost and
IV. RESEARCH METHODOLOGY time using agile software development, a research topic
- INTRODUCTION was devised in consultation with supervisor and teachers.
The finalized research topic is "Agile software
In this section, we will be discussing the methodology that development: impact on project cost and time".
we will be using to conduct our research. The variables and
their operational description/definitions, research tool PHASE 3: DOCUMENT FINDING
applied to examine those variables, hypothetical On the basis of finalized research topic " Agile software
relationship and its graphical portrayal are also briefly development: impact on project cost and time ", Firstly the
illustrated in the section. Moreover, the method for data main hub of the knowledge, similar research papers
collection and the software utilized for the analysis of the selected for literature review, Secondly, internet resources
collected data are also briefly explained. were searched which came up with relevant articles and
- RESEARCH METHODOLOGY PROCESS the key words of "Agile software development cost and
FLOW time", "Agile software development", "research
methodology", "data analysis" etc. were retrieved and read
The research work has been carried out in different phases thoroughly. Section number 2 includes review of almost
to make it systematic and in a sequence such that desired all relevant literature.
results could be achieved.
PHASE 4: PURPOSE AND DOCUMENT CHANGE
PHASE 1: DEFINE GOAL AND CONDUCT
LITERATURE REVIEW Problem statement that is highlighted in the Introduction
section at section 1.3 was planned, reviewed and finalized
Section one i.e. Introduction amplifies upon defining goal with the help of supervisor and IT sector Executives.
for the research conducted in this research. Section two i.e.
Literature Review explains in detail the main theme of the - PHASE 5: ANALYZE IMPACT AND
research and research idea giving detail background DOCUMENT RESULTS
information. The cardinal purpose of the research is to On the basis of the project’s research area, targeted entities
and the problem statement a questionnaire is developed in
context of impact of cost and time using agile methodology H1: Feedback and requirements are the critical factor that
in development of software. impact on agile software development in terms of project
- PHASE 6: SURVEY CONDUCTANCE AND time
DATA COLLECTION. Hypothesis 3
Source of Primary Data H1: Equal frequency of sprint/iterations deliveries impact
The population of this study includes employees of agile software development in terms of project completion
Information Sector employees specially mangers, team on time.
leads, product owners, technical executives and Hypothesis 4
supervisors and those mangers from whom tome H1: Execution of agile development methodology by
management shares and give opinion of project cost and management has major impact on project cost and time.
time. The sample size was found out to be 30 numbers from
the Information Technology sector of Islamabad. The
respondents were selected through simple random V. RESEARCH APPROACH
sampling method in which every element has the same Basic classification of Research approach has been
probability for being selected for the sample (Kothari, categorized into two groups: Quantitative and Qualitative.
1990). Thirty questionnaires were distributed in above The research approach used in this study is quantitative.
mentioned respondents. This method is used to establish and employ statistical
models, hypotheses and theory relating to phenomena.
This method basically analyzes cause and effect, test
In total 35 plus survey forms were sent by using sample
hypotheses and make inference. The data comprises of
size techniques and 30 forms were received considered for
numerals and statistics which is collected using validated
study. The Survey forms received were recorded and data
and structured data-collection tool/instruments. These
retrieved was analyzed and discussed according to
results of quantitative research can be generalized in a way
standard procedures.
that they are made, applicable to other scenarios and
- PHASE 7: DATA ANALYSIS AND context through statistical and mathematical modeling.
DISCUSSION Data was collected from respondents through a structured
This phase incorporates the data collected through survey questionnaire.
questionnaire and the results which are the outcome of this - RESEARCH TYPE
survey to yield the inference from test and further
Research type depends upon the goals of the study. The
hypothesis validation. Different types of analysis such as
study of grace used for this study is Descriptive research as
descriptive analysis, data normality testing, correlations
describe the significance of a situation, state, or existence
analysis and regression analyses is used to produce the
of a specific phenomenon. Relational Research Problem --
findings. The entire analysis was done using the software
suggests a relationship of some sort between two or more
SPSS.
variables to be investigated. Moreover, this is also co-
- PHASE 8: FINDINGS, CONCLUSIONS relational type of research as the researcher only measures
AND RECOMMENDATIONS the variables and their relationship.
After data analysis and discussions, findings, conclusions - RESEARCH TOOL
of the research and recommendations regarding future
Questionnaire has been used as a research tool/instrument
research work were drawn and incorporated in section five
to conduct this research. The questionnaire has been
of this research.
developed after extensive literature review of research
Following hypotheses were formulated for this research work related to impact of time and cost for software
study: development using agile techniques and informal
Hypothesis 1 interviews / interactions with relevant personnel. The
H1: Team capability is an important factor for a successful researcher has developed the questionnaire himself and the
agile software development project. It can have a positive questionnaire has been tested for validity and reliability
or negative effect on time and cost. tests.
VI. ANALYSIS AND DISCUSSION Kurtosis explains the relative sharpness and the height of
the distribution as compared to a normal distribution curve.
- INTRODUCTION
It is usually considered that the range of kurtosis should
To achieve the research aims data is gathered directly from remain between -3 and +3. It is quite clear from table 4-2
primary source so it does not contain much missing values that the value of kurtosis for all the variables used in this
or outliers as data is gathered from respondents directly and research falls within the range which shows that the data is
all information regarding to questionnaire are given to normally distributed.
them. The analysis has been performed using statistical
c. Histograms
package of social sciences (SPSS). The data is measured
on five point Likert scale while relationship among them is The Histograms of these variables are attached as shown
studied using correlation and linearity is discussed by below.
regression analysis.
- DESIGN SELECTED
In this study, design selected is questionnaire-based survey
research. The data set is gathered on five point Likert scale
from strongly disagree to strongly agree. Data reliability
and validity is checked using Cronbach alpha.
- POPULATION
To examine the results, the population of Islamabad and
Rawalpindi is considered as target population so sample is
fetched from that particular regions of Pakistan. The
population of this study includes team leads, project
managers, technical officers and scrum masters of
Information Technology organization.
- SAMPLING DESIGN AND SIZE
It is difficult to analyze complete population and fetch
information from each and every unit of population so a
representative sample would be required. Thus, a
representative sample of 81 respondents is obtained using
simple random sampling technique.
DATA COLLECTION METHOD
The list of respondents compiled from professional circles
and LinkedIn members with relevant roles. The
questionnaire was circulated through web links by
researcher.
among all pairs of variables that is also observed from Table 4.4: ANOVA
astaric * signs above all values in SPSS output. Further, we
observe the relationships are almost moderate as they are
nearly equal to 0.5 and the value of relationship considered
nearly equal to .5 is moderate relationship. While
relationship among customer satisfaction and on time
delivery is 0.76 which is largest among all relationships
and its strongest. Further, all variables have significant
relationship with dependent variable as well.
REGRESSION ANALYSIS
As, we observe significant relationship among all pairs of
variables using correlation analysis so further linear
relationship is discussed using regression analysis and
explored how much increase in one variable causes
increase or decrease in predictor variable. Here, project
cost and time is considered as dependent variable and
remaining variables act as independent variables.
Table 4.3: Model Summary
a. Predictors: (Constant), TP
b. Predictors: (Constant), TP, CS
c. Predictors: (Constant), TP, CS, OTD Table 4.5: Model Summary
d. Predictors: (Constant), TP, CS, OTD, MS
e. Dependent: PCnT
Among these regression equations the second model has
highest R square. So, we would say that maximum
variation is explained by this model so, team productivity
and customer satisfaction are explaining maximum
variations as compared to all independent variables.
a. Predictors: (Constant), TP
b. Predictors: (Constant), TP, CS
c. Predictors: (Constant), TP, CS, OTD
d. Predictors: (Constant), TP, CS, OTD, MS
e. Dependent: PCnT
The ANOVA table for all models are indicating
significance due to smallest p values which seems
goodness of fit for all models.
satisfaction and team productivity have positive significant by adding uncertainty as mediator variable in team
impact on project cost and time variable. productivity can help out to extract more significant
Moreover, the findings of the study can be used to strength results.
and extend the existing models of Agile Software
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