Last updated January 1, 2023
Choose a Billing Preference
It has become common in IT for clients to expect contractors like Prospus to prepare legally-binding quotations for complex solutions based on incomplete requirements. The reality of bidding on a software project without full disclosure is that it is impossible to accurately determine the costs, timelines and other variables involved. This presents unacceptable risks for both parties: contractors stand to lose if they under-estimate; clients risk over-paying, or worse, project abandonment by contractors facing unanticipated losses.
Although getting ballpark pricing and timeline estimates is often one of the first steps most clients take, as a rule we do not provide such figures for bespoke projects without comprehensive requirements. To provide meaningful estimates we need to clarify system requirements, a time-consuming and costly process involving business and system analysts. We initially depend on client briefs and documentation, but only through a managed discovery process can we come to fully understand a project in its entirety and be confident enough to offer estimates.
For those requiring budgetary information to take the next step in the development process we offer three options, or billing preferences.
+At Prospus we do not provide accurate, binding quotations without a prepaid Requirements Analysis. Furthermore, we strongly recommend against working with any software company offering free, no-risk development quotations. Would you trust an architect who quoted costs for building a structure he didn’t ask any questions about?+
+We always recommend a full System Requirements Analysis prior to development. Not only does it provide accurate costing, but working with a professional analyst helps stakeholders better understand their own needs.+
Billing Preference Summary
At Prospus we offer three ways to take advantage of our project services: hourly, estimation and quotation. Hourly billing is most suitable for clients who are unsure of what they want and are willing to experiment and explore without a firm budget up-front. Estimates are most suitable for clients who are not sure of what they need but want some pricing guidelines and are willing to accept a degree of uncertainty in the pricing of their project. Quotations work best for clients who require certainty in their project budgets and timelines.
+The only way to get an accurate quotation for construction is to hire a professional architect to prepare blueprints. Software systems are just as complex as buildings and arriving at an accurate quotation requires at least as much time and expertise. Consequently, professional software development firms will always charge for quotations. Free quotations should be eyed suspiciously; at best, they are irresponsible; at worst, they could be a way to secure a job and drive up costs with future change order fees.+
We only offer quotations if a System Requirements Analysis is performed first. This paid service allows our analysts to formally discover and document the system requirements. Though we strive for accuracy in our estimates, both costs and timeline are subject to change if we are working on an estimate basis. Generally-speaking the accuracy of our cost and timeline projections increases with greater analysis. There are four services which together comprise a complete requirements analysis: (1) system discovery; (2) system model; (3) system architecture; (4) project plan. The table below outlines the major differences between projects executed on an Estimate, Hourly and Quotation basis in terms of these services.
+What is the difference between an Estimate and a Quotation? The basic difference between an estimate and a quotation is that an estimate is a rough guess of how much something will cost, but without any legal commitment. We base our pricing on what we anticipate the final costs to be. A quotation is a legally-binding commitment to produce a specific set of requirements for a set price.+
Table 1: Project Billing Preferences
| Hourly | Estimation | Quotation | |||||
| Billing Method | I | II | III | IV | V | VI | VII |
| Requirements Quality | Variable | Low | Moderate | High | Variable | Variable | Variable |
| Prepaid Services | |||||||
| System Discovery | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ | |
| System Model | ✔ | ✔ | ✔ | ||||
| System Architecture | ✔ | ✔ | |||||
| Project Plan | ✔ | ||||||
| Approx. Budget | N/A | ≈35% | ≈25% | ≈15% | ≈40% | ≈50% | ≈60% |
| Cost Projections | +/- ∞ | +/- ∞ | +/- ∞ | +/- ∞ | +/- 30% | +/- 25% | +/- 20% |
| Timeline Projections | +/- ∞ | +/- ∞ | +/- ∞ | +/- ∞ | +/- 35% | +/- 25% | +/- 15% |
| Delay Penalty | N/A | N/A | Negotiable | ||||
- Requirements Quality refers to the quality of the requirements provided by clients in terms of how accurately they describe the intended system.
- Approximate Budget refers to the approximate costs of the services in the table as a percentage of the total cost of the project. A higher figure exposes the costs associated with clarifying low-level requirements versus high-level requirements.
- Cost Projections refers to the approximate accuracy of the projections provided.
- Ambiguous requirements may extend the timeline for quoted projects.
Billing Scenarios
Choosing a billing preference can be complicated, but it can matter when you want to understand how Prospus handles projects at large. Below we have further explained how a project might be billed in each of the different methods shown in the Project Billing Preferences table above. Note that in most cases, it is not important for clients to understand all the nuances of each billing method. It can be useful when assessing project risk, however. We are careful to recommend the billing preference we think most suitable for a client.
Hourly, Billing Preference I
Scenario
- You don’t request or receive a formal estimate for the development of the system from Prospus, therefore you are automatically enrolled for Hourly Billing Preference I.
Process
- Before we start analyzing your project we request you purchase a prepaid labor voucher. Prospus requires all labor to be pre-paid unless a separate agreement is in place for periodic billing via invoice.
- Once the prepaid labor voucher is purchased we will commence the project. Our system will automatically track our labor activities on your project and send those summaries to your email at the close of every workday. Labor expenditures will be deducted from your prepaid labor voucher. As your prepaid voucher funds run low, our system will automatically send you a request to purchase another prepaid voucher. Work on your project will stop if your prepaid labor fund is depleted.
Billing
- If your project costs $13,500 in hourly labor then you will be responsible for paying the full amount.
Estimation, Billing Preference II
Scenario
- You want a general ballpark estimate of the cost for developing your system. A Prospus analyst examines your requirements and determines that the requirements you have provided are of “low quality” because there is not enough information about the features to accurately estimate development costs. Low quality requirements make our job more challenging so you are enrolled for Estimate Billing Preference II and you will be required to purchase a System Discovery service.
Process
- Before we start analyzing your project we request you purchase a prepaid labor voucher to fund the System Discovery service. Prospus requires all labor to be pre-paid unless a separate agreement is in place for periodic billing via invoice.
- Once the prepaid labor voucher is purchased we will commence the System Discovery to determine requirements and prepare an estimate. Note that the System Discovery must be prepaid and is billed on an hourly basis. As per our experience the cost of this service should run approximately 35% of the total cost of your system with high-quality requirements provided up-front.
- After we have completed our System Discovery service we will provide you a cost and timeline estimate for developing your full system. Because this is only an estimate, we have not performed enough analysis to commit to either, and so cost or timeline overruns will be borne by you.
Billing
- If we estimated your project at $10,000 but it ended up running $13,500 you will be responsible for paying the full amount. Estimates are for general planning purposes only and should not be considered 100% accurate. Estimates are, however, valuable for internal budgeting.
Estimation, Billing Preference III
Scenario
- You want a general ballpark estimate of the cost for developing your system. A Prospus analyst examines your requirements and determines that the requirements you have provided are of “moderate quality”. Moderate quality requirements make our job easier so you are enrolled for Estimate Billing Preference III and you will be required to purchase a System Discovery service.
Process
- Before we start analyzing your project we request you purchase a prepaid labor voucher to fund the System Discovery service. Prospus requires all labor to be pre-paid unless a separate agreement is in place for periodic billing via invoice.
- Once the prepaid labor voucher is purchased we will commence the System Discovery to determine requirements and prepare an estimate. Note that the System Discovery must be prepaid and is billed on an hourly basis. As per our experience the cost of this service should run approximately 25% of the total cost of your system with high-quality requirements provided up-front.
- After we have completed our System Discovery service we will provide you a cost and timeline estimate for developing your full system. Because this is only an estimate we have not performed enough analysis to commit to either and so cost or timeline overruns will be borne by you.
Billing
- If we estimated your project at $10,000 but it ended up running $13,500 you will be responsible for paying the full amount. Estimates are for general planning purposes only and should not be considered 100% accurate. Estimates are, however, valuable for internal budgeting.
Estimation, Billing Preference IV
Scenario
- You want a general ballpark estimate of the cost for developing your system. A Prospus analyst examines your requirements and determines that the requirements you have provided are of “high quality”. High-quality requirements make our job substantially easier so you are enrolled for Estimate Billing Preference IV and you will be required to purchase a System Discovery service.
Process
- Before we start analyzing your project we request you purchase a prepaid labor voucher to fund the System Discovery service. Prospus requires all labor to be pre-paid unless a separate agreement is in place for periodic billing via invoice.
- Once the prepaid labor voucher is purchased we will commence the System Discovery to determine requirements and prepare an estimate. Note that the System Discovery must be prepaid and is billed on an hourly basis. As per our experience the cost of this service should run approximately 15% of the total cost of your system with high-quality requirements provided up-front.
- After we have completed our System Discovery service we will provide you a cost and timeline estimate for developing your full system. Because this is only an estimate we have not performed enough analysis to commit to either and so cost or timeline overruns will be borne by you.
Billing
- If we estimated your project at $10,000 but it ended up running $13,500 you will be responsible for paying the full amount. Estimates are for general planning purposes only and should not be considered 100% accurate. Estimates are, however, valuable for internal budgeting.
Quotation, Billing Preference V
Scenario
- You want an accurate quotation of the cost for developing your system. A Prospus analyst determines that you are comfortable with accuracy within +/- 30% and so you are enrolled for Quotation Billing Preference V. Consequently, you will be required to purchase both the System Discovery and System Model services.
b. You understand that we will deliver a binding quotation with a variability of +/- 30% on the costs, and +/- 35% on the timeline.
Process
- Before we start analyzing your project we request you purchase a prepaid labor voucher to fund the System Discovery and System Model services. Prospus requires all labor to be pre-paid unless a separate agreement is in place for periodic billing via invoice.
- Once the prepaid labor voucher is purchased we will commence the prepaid services to determine requirements and prepare a legally-binding quotation. Note that these services must be prepaid and are billed on an hourly basis. As per our experience the cost of these services together should run approximately 35% of the total cost of your system. Higher-quality requirements provided up-front will decrease this number.
- After we have completed the System Discovery and System Model services we will provide you a cost and timeline estimate for developing your full system. Because this is a quotation we are committing to deliver the specified functionality for a set price.
Billing
- If we estimated your project at $10,000 but it ended up running $15,000 you will be responsible for paying only $13,500 because we have committed to delivering the system within a +/- 30% range. Quotations are legally-binding commitments to perform the stated work for a specific amount and within a set timeline.
Quotation, Billing Preference VI
Scenario
- You want an accurate quotation of the cost for developing your system. A Prospus analyst determines that you are comfortable with accuracy within +/- 25% and so you are enrolled for Quotation Billing Preference VI. Consequently, you will be required to purchase the System Discovery, System Model and System Architecture services.
- You understand that we will deliver a binding quotation with a variability of +/- 25% on the costs, and +/- 25% on the timeline.
Process
- Before we start analyzing your project we request you purchase a prepaid labor voucher to fund the System Discovery, System Model and System Architecture services. Prospus requires all labor to be pre-paid unless a separate agreement is in place for periodic billing via invoice.
- Once the prepaid labor voucher is purchased we will commence the prepaid services to determine requirements and prepare a legally-binding quotation. Note that these services must be prepaid and are billed on an hourly basis. As per our experience the cost of these services together should run approximately 45% of the total cost of your system. Higher-quality requirements provided up-front will decrease this number.
- After we have completed the System Discovery, System Model and System Architecture services we will provide you a cost and timeline estimate for developing your full system. Because this is a quotation we are committing to deliver the specified functionality for a set price.
Billing
- If we estimated your project at $10,000 but it ended up running $15,000 you will be responsible for paying only $12,500 because we have committed to delivering the system within a +/- 25% range. Quotations are legally-binding commitments to perform the stated work for a specific amount and within a set timeline.
Quotation, Billing Preference VII
Scenario
- You want the most accurate quotation of the cost for developing your system. A Prospus analyst determines that you are comfortable with accuracy within +/- 20% and so you are enrolled for Quotation Billing Preference VII. Consequently, you will be required to purchase the System Discovery, System Model, System Architecture and Project Plan services.
- You understand that we will deliver a binding quotation with a variability of +/- 20% on the costs, and +/- 15% on the timeline.
Process
- Before we start analyzing your project we request you purchase a prepaid labor voucher to fund the System Discovery, System Model, System Architecture and Project Plan services. Prospus requires all labor to be pre-paid unless a separate agreement is in place for periodic billing via invoice.
- Once the prepaid labor voucher is purchased we will commence the prepaid services to determine requirements and prepare a legally-binding quotation. Note that these services must be prepaid and are billed on an hourly basis. As per our experience the cost of these services together should run approximately 50% of the total cost of your system. Higher-quality requirements provided up-front will decrease this number.
- After we have completed the System Discovery, System Model, System Architecture and Project Plan services we will provide you a cost and timeline estimate for developing your full system. Because this is a quotation we are committing to deliver the specified functionality for a set price.
Billing
- If we estimated your project at $10,000 but it ended up running $15,000 you will be responsible for paying only $12,000 because we have committed to delivering the system within a +/- 20% range. Quotations are legally-binding commitments to perform the stated work for a specific amount and within a set timeline.
Notes
- These are guidelines only, and are subject to interpretation and revision prior to the start of a project.
- Any changes to the scope of the project received after analysis may affect both cost and timeline projections, regardless of billing preference.
- In the case of estimates, our project management team will always communicate anticipated delays, unexpected expenses and change orders as soon as they become known to us. We will always aim to minimize changes for clients.
- For both Hourly and Estimation-based projects, our system will automatically track our labor activities on the System Discovery and send those summaries to your email at the close of every workday. Labor expenditures will be deducted from your prepaid labor voucher. As your prepaid voucher funds run low our system will automatically send you a request to purchase another prepaid voucher. Work on your project will stop if your prepaid labor fund is depleted.
- In the case of quotations, daily labor hours will not be sent out to clients.
What to Know Before You Select a Billing Preference
The unfortunate truth of software development is that it is impossible to get 100% accuracy in cost and timeline forecasting. Despite this few clients are willing or able to make any decisions without at least some estimate, however vague or uncertain. To that end, most clients who come to us fall into one of several categories. If you fall into one of these categories you might find the guidelines below helpful in getting your project started.
I need a ballpark figure to get started.
We cannot provide “ballpark” figures without first having a set of system requirements in the same way a general contractor cannot tell you how much your house will cost to build without blueprints, labor and supplies breakdown, and an environmental analysis. When an estimate is required on a system with unclear requirements we always suggest an hourly prepaid discovery during which our analysts would work with you to define the scope of your project. Once the scope is clear we can provide an estimate or the option of a more accurate quotation.
I have a firm budget.
If you have a firm budget then you should share that with our analysts so they can help direct you toward the billing preference you need. We will use your budget as a starting point for our requirements analysis and recommend a suitable solution and service level. Withholding your budget, while effective in certain negotiations, is not a very productive tactic in software development because it will impair our ability to identify the best options
I plan to pursue funding from a third-party and need an estimate for my project.
When third-party investors are involved we always suggest a paid System Discovery to produce a professional set of engineering documents which can then be used as the basis for an estimation or quotation. Additionally, with our experience working with venture-funded startup companies, and as investors ourselves, our fact and research-based estimation process can improve your chances of securing loans or funding.
Another company has given me a quotation. Can Prospus meet or beat their figure?
Every software company differs in the way they build software, the quality of their inputs, tools and languages they use, procedures they follow and countless other ways. Therefore, we will need to conduct our own requirements analysis to arrive at pricing for our services. A competitor analysis can be useful in that process. If we feel that a competitor quotation is comparable in quality and vision we can always prepare a competitive proposal.
Billing Preferences
Hourly Billing Method
When system requirements, quantity of work, or timelines are unknown then hourly project billing is the most suitable billing method due to its direct and flexible terms; clients simply pay for what they consume. We offer two ways to pay for hourly-based IT services: prepaid and postpaid. Prospus prepaid services offer the most value and are available in multiple denominations to suit client budgets. Prospus postpaid services offer a more traditional arrangement with regular invoicing for trusted clients . All services, whether prepaid or postpaid, come with the same perks and high-quality customer service.
Prepaid Labor Voucher Terms
We gladly offer those who purchase our prepaid labor vouchers our best rates for several reasons. When clients pre-pay we save on administrative overhead and project management costs. Pre-payment also provides Prospus with a high degree of certainty when allocating labor, lowering our overall operational costs and risks, translating into savings that we can pass on to our clients. Below are some terms to be aware of before clients make the decision to purchase a Prospus prepaid labor voucher.
- Prepaid labor vouchers must be used within one year from the date of purchase. As our labor and overhead costs fluctuate, so do our hourly rates.
- Prepaid labor vouchers cannot be combined with any other offer, discount, or coupon.
- Prepaid labor vouchers are transferable. Our vouchers make great gifts to friends, family, and co-workers. Small business owners especially like them.
- Upon expiration, the value remaining on your prepaid voucher will only be redeemable for services at our standard hourly rates at the time of redemption.
- While transferable, Prepaid Labor Vouchers are non-refundable.
Customers who do not have an active ongoing project or support plan with Prospus will be required to purchase a prepaid labor voucher prior at a set minimum level prior to the commencement of any work.
Labor Rates Chart
Our labor rates are competitive with established international standards in IT. For a complete listing of all conditional fees, billing policies and labor rates, please refer to the most recent version of the publication Prospus Labor Rates.
Estimate Billing Method
Work estimates are the best billing option when a project has general timeline and budget from the outset, but full requirements are unknown or are expected to evolve. Estimates provide a general idea of the cost of a system, but do not provide any assurances of the final costs or timeline. For smaller projects, estimates can be provided freely; however, a paid discovery will generate more accurate projections. Clients who require absolute certainty in both the costs and timeline of a project are recommended to seek a quotation.
Quotation Billing Method
A detailed assessment of software requirements is essential to provide an accurate appraisal of project costs and schedules. Arriving at precise cost projections is a formidable task, requiring extensive analysis. But when precision is required, a quotation is the only option. Given that the process of discovering, documenting and formally estimating development costs is substantial, a full System Requirements Analysis is a paid service comprising up to 50% of the total budget of a project.
All Prospus quotations are legally-binding commitments to produce a specific set of functionalities at a set rate. Quotations are based on requirements provided by the client and discovered during the System Discovery phase. Modifications to the initial requirements will affect corresponding modifications to our quotations.
Labor Cost Proportions
Software companies will often estimate the number of hours required to complete a project. It’s important to know that trying to arrive at a straight calculation of productions costs based on an hourly estimate can be tricky because each labor hour is weighted differently. In any given project there could be 10 or more professionals working together, from programmers and graphics designers to business analysts and software architects. And each of these experts have a different hourly labor rate, making straight calculation impossible.
All projects are unique so we cannot definitively determine the costs of every project, we can however show the average over the hundreds of projects that we have completed, and thousands we have studied. Below is a chart showing the breakdown of a typical 1000-hour project. We’ve included the standard production phases and identified the typical employees involved at that stage and their respective labor rates.
Table : Labor as a Proportion of Project Costs
| Phase | Labor Hours | Project Hours | Labor Cost | Labor Budget | Budget Consumption (Cumulative) | Experts Involved |
| Engagement | 30 | 3% | $1,050 | 3% | 3% | Account Executive, Project Manager |
| Discovery | 150 | 15% | $5,250 | 15% | 18% | Business Analyst, Systems Analyst, Project Manager |
| Planning | 50 | 5% | $1,750 | 5% | 23% | Project Manager |
| UI Modeling | 70 | 7% | $2,450 | 7% | 30% | Design Lead, UI Designer |
| UI Design | 80 | 8% | $2,800 | 8% | 38% | Graphics Designer |
| UI Implementation | 160 | 16% | $5,600 | 16% | 54% | Web Stylist, Front-End Developer |
| Architecture | 40 | 4% | $1,400 | 4% | 58% | Software Architect |
| Implementation | 250 | 25% | $8,750 | 25% | 83% | Development Lead, Front-End Developer, Back-End Developer, Database Developer |
| QA, Testing, UAT | 150 | 15% | $5,250 | 15% | 98% | Software Tester, QA Analyst |
| Training | 10 | 1% | $350 | 1% | 99% | Project Manager |
| Launch | 10 | 1% | $350 | 1% | 100% | Development Lead, Database Developer |
| 1,000 | 100% | $35,000 | 100% | 100% |
System Requirements Analysis
The best way to ensure project success is to know full system requirements ahead of time and to hire a contractor who fully understands them before starting the project. Non-engineers usually capture their needs as lists of items and features, formatted documents, or even user stories. However, these documents are not suitable blueprints for complex technical systems with multiple users and subsystems. It is the job of the professional systems analyst to convert these “informal requirements” into “technical specifications” via an iterative and exploratory process known as the “system requirements analysis”. While you may not understand everything our analyst products during this process, it is imperative you critically review the various artifacts if only to ensure that they convey a plan and a deep understanding of your system. Most importantly, the results of the System Requirements Analysis will serve as the basis of the System Development Estimate.
Why Do I Need a System Requirements Analysis?
There are many reasons to prepare formal requirements documentation. A proper analysis will better ensure that the final system includes all required functionality and features needed by internal and external end users. The analysis will also provide a more accurate understanding of the true costs of building the system. Read what our president and founder Marc Ragsdale has said about requirements analysis:
“In my 15 years of experience consulting with clients on web, desktop and mobile development projects, I have found that an in-depth requirements analyses is critical to project and marketplace success. Understanding the requirements in advance helps to ensure that business goals and user needs are met and that the solution achieves what it was designed for. In a website redesign project, your requirements should map directly to any point of pain or frustration that users experience with the current site. Without a solid understanding of those needs at the beginning of the project you are likely to end up with a site or application that neither achieves your goals nor delights your users.
Requirements analysis is an iterative process that begins with an initial brainstorming session and continues throughout the development cycle. Having something concrete in your hands will make the production experience more fluid and efficient and the final deliverable more likely to hit the intended target. With a Prospus system requirements analysis we will guide you through the entire process and deliver a comprehensive architectural blueprint of your solution so you can rest assured that you are prepared for development.”
Failure to properly analyze a project up-front – especially a complicated system – will almost certainly result in unexpected costs, delayed timelines, and increased chances of project failure. Perhaps the most visible benefit of planning is in the potential cost of fixing errors or oversights. An error discovered in the development phase of a project could cost up to twenty-five times or more to fix than if uncovered during the analysis.
About Our System Development Estimate
Any development estimate is based on both the known requirements and assumptions of a system. At Prospus we have a proven method for deriving requirements and enumerating assumptions that permits us to accurately estimate the costs of building complex systems . Before we can arrive at a realistic project estimate we use our proprietary methodology to determine the number of elements within the system and the approximate complexity. Starting with the client requirements, from those we elicit additional technical requirements by conducting various analyses. Assuming the requirements are fully known to us, we can commit to a narrow budget range and timeline.
How It Works
The process for producing a full set of system requirements will vary with the project; some methods are great for certain types of systems, but poor for others. There are four stages in the life cycle of a requirement. While non-technical clients may not understand everything a skilled Prospus analyst produces during this phase, it is imperative that they critically review our work if only to ensure that it conveys a plan and a deep understanding of the system.
And whether a client ultimately chooses to work with Prospus or not on the actual production of the project, the documents we produce during a system requirements analysis are mandatory for development because they precisely specify what the system is supposed to accomplish. Clients can utilize the documents to make more informed decisions and hold contractors accountable.
Generally-speaking, there are four stages in the requirements life-cycle:
- Needs Analysis – All systems start out as sets of related problems. People identify issues they confront and needs that require servicing until they congeal together to form a firm system requirement. Before we start inquiring about the requirements, our systems analyst will want to know about the people involved and the challenges they are facing.
- Requirements Discovery – Given an understanding of problems, the systems analyst can start to define actual system requirements. At this stage the requirements range from non-technical to technical. We follow a formal fact-finding process which includes research, meetings, interviews, questionnaires, sampling, and other techniques to collect information about system problems, requirements, and preferences.
- Requirements Analysis – Once requirements have been harvested and documented, they need to be thoroughly analyzed with various tools to ensure all missing, conflicted, infeasible, overlapping or ambiguous requirements are resolved. The final document that emerges from this phase will serve as a legally-binding agreement between all parties involved.
- Requirements Management – Over the lifetime of the project it is very common for new requirements to emerge and existing requirements to change. Studies have shown that as much as 50 percent or more of a system’s requirements will change before the system is put into production. Since requirements form the basis of a legally-binding contract between multiple parties it is essential that all changes be properly documented and involved parties consent. Requirements management is the process of managing the changes and execution of requirements.
Understanding Requirements
Requirements specify what a system must do or what property or quality the system must have to meet the needs of the users. They are broadly broken into three categories: business requirements; user requirements, and system requirements. We solicit requirements in all formats and contexts and use them as the basis for our formal technical analysis. The quality and detail of the requirements documents provided by the client will directly impact the timeline and success of both the analysis and the project. Incomplete requirements will lead to longer timelines and misunderstood project goals.
Business Requirements
Business requirements are what must be delivered to provide value to the various stakeholders. To discover business requirements a business analyst must not only understand what a business presently does, but what it should do better to achieve its goals. Our technology-oriented business analysis process ensures that all business objectives are captured.
User Requirements
User requirements are those features and functions the specific system users will require. The analyst will pay special attention to use cases and how they are implemented in terms of usability and workflow. Properly capturing user requirements may require extensive user feedback for users who are presently trained in systems which perform similar functionality.
System Requirements: Functional Requirements
Functional requirements specify the software functionality that the developers must build into the product to enable users to accomplish their tasks, thereby satisfying the business requirements. In simpler words, functional requirements state what the system must do. They include business rules, transaction corrections, adjustments, administrative functions, authentication, audit tracking, external interfaces, certification requirements, reporting requirements, historical data, and legal and regulatory requirements among other things.
Why Choose Prospus for Your System Requirements Analysis
System requirements analysis is the process of systematically identifying what a system should accomplish, and then clearly documenting that understanding as the basis of a contractual agreement between two or more parties. According to the Project Management Institute 70% of IT projects fail due to incomplete or poorly-understood requirements. At Prospus we understand the importance a proper requirements analysis plays in the success, or failure, of your IT project and have designed our discovery process in such a way as to minimize risks and identify opportunities early on. We apply a three-part strategy to achieve stellar results in every single systems analysis we perform:
1. We hire exceptional talent. Project success starts by hiring the right talent for the job. Systems analysts are one of the most highly-paid professionals in the IT industry, and for good reason; they are responsible for researching, planning, coordinating and recommending diverse software and system solutions to meet an organization’s business requirements. The systems analyst role is vital and therefore must meet exceptionally high standards analytically, technically, managerially, and inter-personally. That is why we hire only experienced systems with 10+ years of hands-on experience with software and database projects, extraordinary written and oral communication skills, and a proven ability to identify and extract all requirements before signing off on a project.
2. We follow a proven process. Talent is important, but a talented analyst following a faulty process will deliver incomplete results just the same. Systems analysis is not a perfect science, so the process needs to be sufficiently flexible to account for the kind of variation we find in systems development. Our process has been designed and perfected over years of experience and has proven itself time and time again to account for even the most complicated application scenarios.
3. We collaborate to achieve business objectives. There is a well-known saying in the project management field that development is the process by which a client discovers what they truly want. Although this is unfortunately true in many (if not most) cases, determining what you want during construction should be avoided at all costs. Not only does it lead to costly change orders, but the back-and-forth severely compromises the development of a solid, secure foundation. An effective requirements analysis led by an expert consultant skilled in a variety of techniques for eliciting business needs will greatly reduce the chance of missed requirements.
At Prospus we employ a collaborative approach to the requirements harvesting process, whereby we go beyond passively documenting needs, but actively engage in identifying risks, opportunities, strengths and weaknesses.
