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  5. EVIDENCE ON ECONOMIES OF SCALE IN SOFTWARE DEVELOPMENT

EVIDENCE ON ECONOMIES OF SCALE IN SOFTWARE DEVELOPMENT

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MIT_CISR_WP_260_Evidence_on_Economics_of_Scale_in_Software_Development_Banker_Chang_Kemerer.pdf

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Author(s)
Banker, Rajiv
•
Chang. Hsihui
•
Kemerer, Chris
Date Issued
July 1, 1993
Publisher
Cambridge, Mass.: Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology
Citation
Banker, Rajiv, Chang. Hsihui, and Chris Kemerer. “Evidence on Economies of Scale in Software Development.” Working paper 260, Center for Information Systems Research, Sloan School of Management, Massachusetts Institute of Technology, 1993. https://dspace.mit.edu/handle/1721.1/175344.
Series/Report no.
MIT Sloan School of Management Working Paper 3620-93
CISR Working Paper 260
Abstract
Researchers and practitioners have found it useful for cost estimation and productivity evaluation purposes to think of software development as an economic production process, whereby inputs, most notably the effort of systems development professionals are converted into outputs (systems deliverables), often measured as the size of the delivered system. One centeral issue in developing such models is how to describe the production relationship between the inputs and outputs. In particular, there has been much discussion about the existence of either increasing or decreasing returns to scale. The presence or absence of scale economies at a given size are important to commercial practice in that they influence productivity. A project manager can use this knowledge to scale future projects so as to maximize the productivity of software development effort.
Subjects
Scale economies
Returns to scale
Productivity measurement
Software development
Software management
Data envelopment analysis
Software metrics
Source lines of code
Function points
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