Main / Glossary / Purpose of Estimating

Purpose of Estimating

Estimating, in the context of information technology, refers to the process of determining the time, effort, cost, and resources required to complete a particular project or task within the IT sector. It involves analyzing the requirements, breaking down the work into smaller components, and providing an estimation of the effort and resources needed to accomplish each of these components.


Estimating plays a vital role in the successful planning, execution, and management of IT projects. It allows organizations and project teams to effectively allocate resources, set realistic expectations, and make informed decisions regarding project timelines and budgets. Estimating is an essential step in project management, as it provides a foundation for project planning, risk assessment, and stakeholder communication.


There are several advantages to estimating within the IT sector:

  1. Resource Allocation: Estimating helps organizations allocate resources more effectively by providing insights into the availability and capacity of individuals or teams. It allows project managers to ensure that the right resources are in place at the right time, reducing the risk of delays and cost overruns.
  2. Time Management: By estimating the effort required for each task, project managers can create realistic project schedules and determine critical paths. This helps in managing dependencies, reducing bottlenecks, and ensuring that projects are completed within the allocated time frame.
  3. Risk Assessment: Accurate estimation enables organizations to identify potential risks and take proactive measures to mitigate them. By understanding the time and resource constraints, project teams can assess the impact of potential disruptions and implement contingency plans accordingly.
  4. Cost Control: Estimating forms the basis for budgeting and cost control. By defining the effort required for each task and understanding the resource costs, project managers can develop accurate cost estimates. This allows organizations to allocate budgets more effectively, monitor expenses, and avoid unexpected cost overruns.


Estimating is applicable in various domains within the IT sector:

  1. Software Development: Estimating plays a crucial role in software development projects, helping teams determine the time, effort, and resources required for development, testing, and deployment. It enables organizations to plan project milestones, manage dependencies, and allocate teams effectively.
  2. Project Management: Estimating is integral to project management, allowing project teams to create detailed project plans, define work breakdown structures, and allocate resources efficiently. It helps in setting project expectations, tracking progress, and ensuring timely completion of deliverables.
  3. IT Consultancy: Estimating is essential for IT consultancies to provide accurate proposals and quotes to their clients. It helps in forecasting project costs, managing client expectations, and ensuring the profitability of engagements.


Estimating is a critical aspect of project management within the IT sector. It provides the necessary insights to effectively allocate resources, manage project timelines and budgets, and mitigate risks. Accurate estimation enables organizations to plan and execute projects more efficiently, leading to successful outcomes and improved client satisfaction. By embracing the process of estimating, IT professionals can enhance their decision-making capabilities and contribute to the overall success of IT projects.