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In software development phase, projects are often delayed and cross the budget. This problem occurs due to the inaccurate estimation of the project cost and effort for the project development. These estimations are dependent on the project size that may use metrics, LOC and function point analysis. Variety of techniques exist for project cost estimation, which includes algorithm-based models and expert opinion. Expert opinion is one of the ways to estimate project effort. But it doesn’t support project re-estimation during its lifecycle, which helps in tracking project. Cost estimation using algorithmic model plays important role in delivering quality product. COCOMO is being used for cost estimation; but it needs to be updated based on new process models therefore another version of COCOMO should be developed. This paper draws attention towards what should be in proposed COCOMO III, to avoid project uncertainties, risks and deliver a quality product within budget and timeliness.
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