Every now and again I get involved in discussions about what is the best way to estimate the cost of IT services. Should you have a dedicated calculation team that makes all the cost estimates, or should you train the whole project management community and all senior delivery staff to make good cost estimates. It is a question I have been struggling with for the past decade.
The best answer is: It depends. But there are some universal truths on this subject:
- One estimate is no estimate
- An estimate always contains uncertainty
- Don't mix a cost estimate with a price offering
