Agile Development Methodology: Impact on Project Cost and Time

International Journal of Advanced Engineering, Management and
Science (IJAEMS)
Peer-Reviewed Journal
ISSN: 2454-1311 | Vol-10, Issue-7; Nov-Dec, 2024
Journal Home Page: https://ijaems.com/
DOI: https://dx.doi.org/10.22161/ijaems.107.16
www.ijaems.com Page | 128
Agile Development Methodology: Impact on Project Cost
and Time
Kashif Nawaz
kashif.nawaz@ptclgroup.com
Received: 14 Nov 2024; Received in revised form: 12 Dec 2024; Accepted: 19 Dec 2024; Available online: 27 Dec 2024
Abstract— The study investigates the impact of cost and time based on chosen development methodology
specifically agile software development. Agile software development is being used widely in maximum IT
companies. The sole purpose of this research is to study the impact of cost and time on software projects
which were developed using agile frameworks. The concept of the study uses quantitative descriptive
approach in which all respondents were given a survey of closed-ended questions to determine the impact of
cost and time on software projects using agile software development. The gathered information was
statistically analyzed using Statistical Package for the Social Sciences (SPSS) tool. Validity test was verified
by panel of experts, and reliability was checked by Cronbach’s alpha of internal consistency. A number of
analyses were performed on the data including normality testing, correlations and regression analysis.
Keywords— Agile Software Development, Impact of Cost, Time impact, Software development cost and
time impact.
I. INTRODUCTION
Agile software development has played an important role
in almost every business area since the internet dawn. As
the consumer's desire for immediacy and convenience
grows, companies are increasingly being asked to integrate
and develop their web-based services into their products.
As a result, more resources are devoted to developing
profitable software that meets consumer demands.
Businesses want to maximize profits, so they need efficient
resource allocation to keep costs down. This is achieved by
adopting a process model that maximizes the conversion of
resources into quality goods. Agile software development
is a new paradigm aimed at reducing risk and cost of
production. It is based on iterative development and
constant feedback from all stakeholders throughout the
development cycle. Moving from a typical waterfall
process model to an agile process model reduces lead times
and increases team morale and productivity, reducing the
risks associated with large software programmer
development. My research shows that companies across a
wide range of industries can benefit from incorporating
some degree of agility into their development processes. In
recent years, the size and functionality of software have
increased significantly. Cost and time are the major factors
in software development cycle, cost estimation must be
completed before the development cycle begins and
deadlines or estimated completion time must be defined
before the development starts. Both factors help you
correctly estimate each project and get the right price and
delivery time. The vibrant and dynamic nature of ASD
makes starting product development using agile
methodologies a daunting task. Therefore, such a
development model requires accurate cost estimates to
match deadlines and estimates while maintaining the
highest software quality. This report provides a systematic
impact of ASD's on project cost and time and helps an agile
user to understand the impact of these factors while
choosing ASD for his project.
II. BACKGROUND
A process model is required to set the timeline for software
project deliverables and to ensure that all members of the
development team, from managers to engineers to end
users, understand workflow expectations. Organizations
are beginning to realize the inherent limitations of the long-
used waterfall approach. A linear schedule for developing
requirements, implementing all features, and testing does

Nawaz International Journal of Advanced Engineering, Management and Science, 10(7) -2024
not adapt well to changing customer requirements, putting
the project at significant risk. My research examines the
impact of agile approaches on these risks and costs. Agile
uses an iterative development methodology, where
features are developed in 2–4-week increments. As a
result, all three major components of software
development are repeated during the development cycle.
Small features are generated every few weeks and can be
easily modified, allowing for changing user requirements.
The result is lower risk than the waterfall approach and
lower capital costs for software projects in agile
frameworks. Because this method is highly adaptable and
responsive to continuous input, the product almost
perfectly matches consumer expectations, resulting in
greater satisfaction and demand, as well as higher
profitability. However, only good implementation of agile
approaches, or a good degree of agility, can lead to such
low software development costs. My research examines
the pros and cons of using agile models to assess cost and
time impacts on software projects. We begin by examining
the broad expert consensus on the limitations of both
traditional and agile methodologies and the benefits of
agile process models. Then, we explore the main areas of
cost, quality and customer satisfaction that are impacted
when moving from a traditional method to an agile one.
The term agile methodology refers to processes that are
developed and tested throughout the software development
lifecycle of a project. In contrast to the waterfall approach,
the agile style of software testing runs both the
development and testing processes simultaneously. Agile
refers to a software development methodology that
emphasizes customer satisfaction, team productivity,
continuous planning, and incremental deliverables, rather
than aiming to deliver everything at once at the end.
Agile focuses on keeping processes lean and delivering a
minimum viable product (MVP) that goes through multiple
iterations before being finalized. Feedback is continuously
captured and incorporated, resulting in a more dynamic
process where everyone is working towards a common
goal.
PURPOSE
Determining how long and how much it will take to deliver
a new software product is one of the most difficult tasks in
software development. Should it be that challenging? The
answer is a little more complex and difficult.
Estimating software expenses is tough by nature, and
humans are notoriously terrible at forecasting absolute
outcomes. There are no two projects alike; each has its own
set of goals and a unique set of parameters that define its
existence. What appears to be a simple problem on the
surface is sometimes considerably more difficult or
technically difficult to accomplish in practice. And,
without a doubt, there will be 'unknowns' with the project
that will only be discovered when they occur. Furthermore,
whether you're a consumer, a developer, or a user, no two
people are same. We arrive with our own set of
information, experiences, values, expectations, risk
aversion, and adaptability. Senior engineers are
accustomed to writing high-quality software; but, building
amazing software solutions may be a much more
challenging task for all parties involved.
This study aims to examine the impact of the cost and time
on project delivery using agile process model.
PROBLEM STATEMENT
Agile methodology is being used extensively in various
organizations, but most of them face problem that how
long and how much cost it will take to deliver the project,
this study was aimed to explore the critical factors that
impact project time and cost using the agile methodology.
SCOPE OF WORK
In order to find out the factors that impact project time and
cost using agile methodology. The study is limited to
software projects and in terms of methodology it is limited
to agile software development. We picked 30 samples from
IT industry of Islamabad and hence this study is covering
only companies working in Islamabad. Companies
selected for research also work for international clients and
have more than 100 employees.
SIGNIFICANCE OF THE STUDY
The critical factors identified in this research would be
helpful for the other companies working on agile
methodology to keep them in mind while checking the
impact of cost and time using agile methodology for any
project. They will likely face less issues in execution of
project if they take care of the identified factors and
conclusions drawn in this study.
RESEARCH OBJECTIVES
Following are the main objectives this research:
• Evaluate if team capability has impact on cost
and time of project.
• To evaluate customer feedback and requirements
gathering as a major impact on project cost and
time.
• To measure the impact of agile methodology on
cost.
• To measure the impact of agile methodology on
time.
RESEARCH QUESTIONS
RQ1 Does team capability impact on cost and time of
project?

RQ2 Are the customer feedback and requirements
gathering as a major impact on project cost and
time?
RQ3 Project deliverables with equal and defined
deadlines is more valuable to accomplish the
project on time and at defined cost?
RQ4 Execution of agile methodology has a direct
impact on project cost and time?
CLASSIFICATION
Table 1.1: Classification of Research
DATA COLLECTION
A few of the effective methods to gather data from a large
number of population and then apply different random
sampling techniques upon it to extract out the desired
results. To test the research hypothesis and the research
model, data is gathered through 3 IT companies of
Islamabad and 30 individuals participated in data
collection. Product owners, project managers, scrum
master, team leads and mangers with project costing
knowledge and those who are responsible for project
timelines have been consulted and their views has been
gathered through the questionnaires. This survey was
conducted on a voluntary basis with no undue pressure. All
the target respondents were given a standardized
questionnaire as shown below:
DATA ANALYSIS
Most data were received back from the respondents via
online questionnaires as most IT staff prefer to use their
screens and keep in the comfort of their work environment
so researcher also preferred this way to get the actual and
real results. Analytical study on collected data were
performed using the Statistical Package for the Social
Scientists (SPSS). A quantitative approach enables an
investigator to investigate the relationship between
variables. As there were a number of variables, both
dependent and independent, in this study.
STEPS IN QUESTIONNAIRE DESIGN
According to Dr. R. Venkitachalam’s “” and Linda Del
Greco, Walop W.Richard H McCarthy.
The steps in questionnaire design are as below:
Step 1: Background;
(a) Purpose and goal/objectives in Research
questions, hypothesis;
(b)Target audience / population sample.
Step 2: Conceptualization;
(a) Generate statements/ questions items i.e.
variables; Independent Variables (IV),
Dependent Variables (DV);

(b) Knowledge, attitude, perception, opinion,
facts, behavior
Step 3: Format & Data Analysis;
(a) Appropriate scales of measurement.
(b) Data Analysis
(c) Questionnaire format.
Step 4: Validity;
(a) Panel of experts
(b) Readability tests
(c) IRB (Institutional Review Board)
(d) Field Test
(e) Revisions Readability Test.
Step 5: Reliability;
(a) Pilot Test reliability.
(b) Run Alpha, revisions, Re-Run Alpha.
(c) Instrument ready for mailing.
LIMITATIONS OF THE STUDY
The study has also some limitations which are important to
mention at this stage. First, the study focuses only on IT
market of Islamabad. Second, the study only emphasizes
on industry of Pakistan. Therefore, the dynamics of Agile
impact in global organizations are not the part of this study.
THEORETICAL FRAMEWORK
Figure 1.1: Diagrammatic Depiction of Independent and
dependent Variables
III. LITERATURE REVIEW
The purpose of this section is to examine the potential
impacts that Agile software development can have on time
and cost, with a specific focus on major contributions that
are discussed in the available literature.
1.1. LITERATURE REVIEW
- AGILE SOFTWARE DEVELOPMENT
Agile refers to software development methodologies that
emphasis incremental delivery, team communication,
continuous planning, and continuous learning rather than
attempting to provide everything at once towards the end.
Agile promotes keeping processes lean and developing
minimal viable products (MVPs) that go through several
iterations before being complete. Feedback is continuously
collected and incorporated, resulting in a much more
dynamic process in which everyone is working towards a
common objective.
- SHORT HISTORY OF AGILE
Agile software development is a methodology that was
first proposed in the early 1990s. It was created as an
alternative to the traditional waterfall model of software
development. In agile, software is developed in short
cycles, or sprints, and each sprint focuses on a specific set
of features. This allows for more flexibility and iteration
than the waterfall model. Agile has become increasingly
popular in recent years, and many organizations have
adopted it as their primary method of software
development.
- AGILE IS MINDSET
Therefore, Agile is a mentality based on the ideals and
principles of the Agile Manifesto. These beliefs and
principles show how to produce and adapt to change, as
well as how to deal with uncertainty. The Agile Manifesto's
opening phrase encompasses the whole concept: "By doing
it and helping others do it, we are finding new ways of
building software." When faced with ambiguity, try
something you believe could work, obtain feedback, and
make adjustments as needed. When you're doing this, keep
the values and principles in mind. Allow your context to
inform the frameworks, methods, and approaches you
apply to engage with your team and provide value to your
customers.
MODEL
Every project should be handled differently, according to
the Agile model, and current techniques should be
adapted to best meet the project objectives. To provide
particular features for a release, tasks are split into time
boxes (short time spans) in Agile.
The process is iterative, with each iteration delivering a
functional software build. In terms of features, each build
is incremental; the final version contains all of the
features required by the customer.

Here illustration of the Agile Process Model:
Figure 2.1: Agile Software Development Model
Because of its flexibility and adaptability, the Agile
thinking process began early in software development and
grew in popularity over time. Rational Unified Process
(1994), Scrum (1995), Crystal Clear, Extreme
Programming (1996), Adaptive Software Development,
Feature Driven Development, and Dynamic Systems
Development Method (DSDM) are some of the most
prominent agile techniques (1995). Following the
publication of the Agile Manifesto in 2001, these are now
referred to as Agile Methodologies.
PROCESS USE
There are several common software development
methodologies, such as Scrum, Extreme Programming,
and Feature-Driven Development (FDD). The processes
involved in these methodologies are planning meetings,
test-driven development, pair programming, stand up
meetings and sprints.
With Agile, people and the tasks their team does are the
focus of software development. An important aspect of the
Agile software development is the teams (self-organizing
cross-functional) collaborating to finish a project. For
example, those development teams would create their own
plans to complete a task based on using best practices for
their context while they keep in mind their potential failure
and crisis management should they encounter an issue or
problem. Those self-organizing teams should also work
with other members who have different expertise as needs
arise. Managers will still play a role in an agile
environment; however, managers aid in implementing
change within an agile project by creating a group that
possesses or acquires skill sets to tackle projects
successfully.
- SCRUM
It's a technique used in agile software development. Scrum
is named after the rugby strategy and believes it's more
beneficial to work in small teams than large ones. Within
this method there are three categories, with their
responsibilities as follows:
Figure 2.2: Scrum Method
a) Scrum Master: The Scrum Master is in charge of
organizing the team, sprint meetings, and removing
roadblocks to progress.
b) Product Owner: The Product Owner is in charge of
delivering functionality at each iteration and building
the product backlog.
c) Scrum Meeting: A scrum meeting is a short, daily
meeting where team members discuss what they have
accomplished since the last meeting and what they
plan to do before the next one. This type of meeting
helps ensure that everyone is on the same page and that
tasks are being completed in a timely manner.
d) Product Backlog: It is an agile artifact that captures
what needs to be delivered in order to achieve the
desired outcome. The product backlog items are
ordered by priority, with the most important items at
the top. As new items are added, they are placed in
priority order based on their impact on the business.
- PROCESS FLOW OF SCRUM
a) The team works on the set sprint backlog
b) The team checks for daily work
c) At the end of the sprint, the team provides product
functionality
d) The product backlog is a list where all
information are included to achieve the final-
product
BENEFITS OF USING THE AGILE
METHODOLOGY
Agile methodology is a set of practices and methods that
encourage collaboration and flexibility in the development
process. It has become popular in recent years because it
helps to improve communication, speed up project
completion, and reduce risks. Following are some of the
benefits of using agile methodology in your project.

ON TIME DELIVERY
Organizations that adopt agile methodology achieve a
number of benefits, including on-time delivery. The
traditional waterfall development process often results in
projects taking longer than necessary to complete. This is
because the traditional process involves a long and detailed
planning phase followed by a long and detailed
development phase. During the planning phase, developers
are required to compile a detailed list of features and specs,
which can be difficult to change once the project has
begun. This can also lead to delays in the development
phase, as developers need time to incorporate all the
proposed changes into the project.
Agile methodology, on the other hand, focuses on
completing projects quickly and efficiently. This is done
by breaking projects down into small, manageable pieces
and building them until they are completed. This approach
allows for more flexibility in project planning and
development, which leads to quicker completion times. In
addition, agile methods often result in improved quality
because they allow for more rapid feedback and iteration
between stakeholders.
SUPERIOR QUALITY PRODUCT
Agile methodology is more than just a software
development methodology. It's a way of life, one that
stresses collaboration and communication, focus on
customer needs and constant learning. The benefits of
embracing agile are clear: superior quality products that are
delivered on time and on budget. With an agile process in
place, communication between team members is key. This
allows for seamless integration of new features and updates
into the product, resulting in a better user experience and
less rework. An agile process allows for quicker
development times, leading to a faster time to market. This
can be essential in the ever-competitive world of
technology.
By implementing an agile process, you can reduce costs
associated with developing software. The streamlined
workflow will help keep your team organized and
coordinated, allowing for more accurate estimates and
fewer missteps. An agile process leads to higher quality
products by encouraging teams to work quickly and
efficiently without compromising on quality. By
minimizing errors from the start, you can ensure that your
final product is of the highest caliber.
CUSTOMER SATISFACTION
The agile methodology is a process that helps
organizations to be more responsive to customers and
improve their overall customer satisfaction. By using the
agile methodology, organizations can increase their ability
to respond quickly to changes in the marketplace and
provide better service to their customers.
Organizations that use the agile methodology often find
that they are able to improve their customer satisfaction
ratings. This is because agile methods help organizations
to become more responsive to customer needs, and this
responsiveness can lead to improved satisfaction levels. In
addition, agile methods help Organizations reduce the
amount of time needed to deliver products or services,
which can also lead to increased customer satisfaction.
Overall, the agile methodology is a useful way for
organizations to improve their customer satisfaction
ratings.
BETTER CONTROL
Agile methods allow for better control over project
deadlines and product quality. By working incrementally
and continuously testing, agile techniques help developers
to find and fix errors early, saving time and money.
Furthermore, agile methods promote collaboration among
team members, which leads to a better understanding of the
project and an increased ability to meet deadlines. With
everyone working together in an open environment, the
project can move more quickly and efficiently. Overall,
agile techniques offer many advantages for both the
developers and the organization as a whole - making it a
popular choice for projects of all types.
IMPROVED PROJECT PREDICTABILITY
The agile methodology has been shown to be an effective
tool for improving project predictability. This allows for
better planning and communication, which in turn leads to
a more efficient and successful project. One of the key
benefits of using the agile methodology is that it helps to
overcome the "waterfall model" mentality. The waterfall
model is a process where a project is planned and executed
in a sequential manner, with each step requiring prior
completion of the previous step. However, this model can
be inefficient because it can lead to delays in project
milestones.
By using the agile methodology, projects are able to move
faster and more efficiently through the stages of
development. This allows for a more accurate prediction of
when certain tasks will be completed and ultimately leads
to a more accurate end product.
REDUCED RISKS
Agile methodologies help to reduce the risks associated
with project delivery. This is because they emphasize
communication and collaboration between team members,
which helps to eliminate misunderstandings and potential
conflict. Another benefit of agile methodology is that it
allows teams to adapt quickly to changes in the

environment. This means that they are able to respond
more effectively to unforeseen challenges and problems.
Overall, agile methods provide a number of advantages
that can help organizations achieve their goals faster and
with fewer risks.
INCREASED FLEXIBILITY
Agile methodology has been shown to lead to increased
flexibility. This is because agile encourages the use of
short, iterative cycles that allow for changes to be made
quickly and easily. As a result, projects are able to move
faster and achieve their objectives more quickly.
Furthermore, because agile is incremental, it is less risky
and allows for corrections along the way. This
methodology also leads to a better understanding of the
problem and results in better solutions.
CONTINUOUS IMPROVEMENT
Agile methodologies are designed to help organizations
achieve continuous improvement. According to the
National Institute of Standards and Technology, "Each
iteration of the agile methodology focuses on delivering
working software frequently, with a focus on customer
satisfaction." This approach encourages teams to
continuously assess their work and make necessary
changes in order to improve the quality and efficiency of
their work.
IV. RESEARCH METHODOLOGY
- INTRODUCTION
In this section, we will be discussing the methodology that
we will be using to conduct our research. The variables and
their operational description/definitions, research tool
applied to examine those variables, hypothetical
relationship and its graphical portrayal are also briefly
illustrated in the section. Moreover, the method for data
collection and the software utilized for the analysis of the
collected data are also briefly explained.
- RESEARCH METHODOLOGY PROCESS
FLOW
The research work has been carried out in different phases
to make it systematic and in a sequence such that desired
results could be achieved.
PHASE 1: DEFINE GOAL AND CONDUCT
LITERATURE REVIEW
Section one i.e. Introduction amplifies upon defining goal
for the research conducted in this research. Section two i.e.
Literature Review explains in detail the main theme of the
research and research idea giving detail background
information. The cardinal purpose of the research is to
study the impact of agile software development on project
cost and time. This research carryout detailed analysis of
factors impacting cost and time using agile software
development approach.
Figure 3.1: Work flow diagram of how the research work
was proceeded.
PHASE 2: ANALYZE THE ORGANIZATION AND
COLLECT DATA
Depending on the research that has been made during the
initial phase, to investigate the impact of software cost and
time using agile software development, a research topic
was devised in consultation with supervisor and teachers.
The finalized research topic is "Agile software
development: impact on project cost and time".
PHASE 3: DOCUMENT FINDING
On the basis of finalized research topic " Agile software
development: impact on project cost and time ", Firstly the
main hub of the knowledge, similar research papers
selected for literature review, Secondly, internet resources
were searched which came up with relevant articles and
the key words of "Agile software development cost and
time", "Agile software development", "research
methodology", "data analysis" etc. were retrieved and read
thoroughly. Section number 2 includes review of almost
all relevant literature.
PHASE 4: PURPOSE AND DOCUMENT CHANGE
Problem statement that is highlighted in the Introduction
section at section 1.3 was planned, reviewed and finalized
with the help of supervisor and IT sector Executives.
- PHASE 5: ANALYZE IMPACT AND
DOCUMENT RESULTS
On the basis of the project’s research area, targeted entities
and the problem statement a questionnaire is developed in

context of impact of cost and time using agile methodology
in development of software.
- PHASE 6: SURVEY CONDUCTANCE AND
DATA COLLECTION.
Source of Primary Data
The population of this study includes employees of
Information Sector employees specially mangers, team
leads, product owners, technical executives and
supervisors and those mangers from whom tome
management shares and give opinion of project cost and
time. The sample size was found out to be 30 numbers from
the Information Technology sector of Islamabad. The
respondents were selected through simple random
sampling method in which every element has the same
probability for being selected for the sample (Kothari,
1990). Thirty questionnaires were distributed in above
mentioned respondents.
In total 35 plus survey forms were sent by using sample
size techniques and 30 forms were received considered for
study. The Survey forms received were recorded and data
retrieved was analyzed and discussed according to
standard procedures.
- PHASE 7: DATA ANALYSIS AND
DISCUSSION
This phase incorporates the data collected through survey
questionnaire and the results which are the outcome of this
survey to yield the inference from test and further
hypothesis validation. Different types of analysis such as
descriptive analysis, data normality testing, correlations
analysis and regression analyses is used to produce the
findings. The entire analysis was done using the software
SPSS.
- PHASE 8: FINDINGS, CONCLUSIONS
AND RECOMMENDATIONS
After data analysis and discussions, findings, conclusions
of the research and recommendations regarding future
research work were drawn and incorporated in section five
of this research.
Following hypotheses were formulated for this research
study:
Hypothesis 1
H1: Team capability is an important factor for a successful
agile software development project. It can have a positive
or negative effect on time and cost.
Hypothesis 2
H1: Feedback and requirements are the critical factor that
impact on agile software development in terms of project
time
Hypothesis 3
H1: Equal frequency of sprint/iterations deliveries impact
agile software development in terms of project completion
on time.
Hypothesis 4
H1: Execution of agile development methodology by
management has major impact on project cost and time.
V. RESEARCH APPROACH
Basic classification of Research approach has been
categorized into two groups: Quantitative and Qualitative.
The research approach used in this study is quantitative.
This method is used to establish and employ statistical
models, hypotheses and theory relating to phenomena.
This method basically analyzes cause and effect, test
hypotheses and make inference. The data comprises of
numerals and statistics which is collected using validated
and structured data-collection tool/instruments. These
results of quantitative research can be generalized in a way
that they are made, applicable to other scenarios and
context through statistical and mathematical modeling.
Data was collected from respondents through a structured
questionnaire.
- RESEARCH TYPE
Research type depends upon the goals of the study. The
study of grace used for this study is Descriptive research as
describe the significance of a situation, state, or existence
of a specific phenomenon. Relational Research Problem --
suggests a relationship of some sort between two or more
variables to be investigated. Moreover, this is also co-
relational type of research as the researcher only measures
the variables and their relationship.
- RESEARCH TOOL
Questionnaire has been used as a research tool/instrument
to conduct this research. The questionnaire has been
developed after extensive literature review of research
work related to impact of time and cost for software
development using agile techniques and informal
interviews / interactions with relevant personnel. The
researcher has developed the questionnaire himself and the
questionnaire has been tested for validity and reliability
tests.
- STEPS IN QUESTIONNAIRE DESIGN:
The Questionnaire has been developed following the steps
described in Section number 2 and finally passed through

stages of validity and reliability by pilot project study
based on 25 Nos. of sample questionnaires.
- VALIDITY OF QUESTIONNAIRE
DEVELOPED
The validity and relevance of questionnaire developed has
been verified by experts with vast experience from IT
sector including regulatory bodies.
- RELIABILITY
The reliability of the research questionnaire has been
verified through pilot study based on the sample size of 25
Nos. respondents from sample population. The Cronbach’s
alpha test has been performed on each variable.
VI. ANALYSIS AND DISCUSSION
- INTRODUCTION
To achieve the research aims data is gathered directly from
primary source so it does not contain much missing values
or outliers as data is gathered from respondents directly and
all information regarding to questionnaire are given to
them. The analysis has been performed using statistical
package of social sciences (SPSS). The data is measured
on five point Likert scale while relationship among them is
studied using correlation and linearity is discussed by
regression analysis.
- DESIGN SELECTED
In this study, design selected is questionnaire-based survey
research. The data set is gathered on five point Likert scale
from strongly disagree to strongly agree. Data reliability
and validity is checked using Cronbach alpha.
- POPULATION
To examine the results, the population of Islamabad and
Rawalpindi is considered as target population so sample is
fetched from that particular regions of Pakistan. The
population of this study includes team leads, project
managers, technical officers and scrum masters of
Information Technology organization.
- SAMPLING DESIGN AND SIZE
It is difficult to analyze complete population and fetch
information from each and every unit of population so a
representative sample would be required. Thus, a
representative sample of 81 respondents is obtained using
simple random sampling technique.
DATA COLLECTION METHOD
The list of respondents compiled from professional circles
and LinkedIn members with relevant roles. The
questionnaire was circulated through web links by
researcher.
- NORMALITY TESTING
Usually Normality tests are carried out in order to analyze
whether the data is normally distributed or otherwise.
There are two normality tests which have been used for this
research. These are skewness and kurtosis.
a. Skewness
Skewness defines whether the data is skewed towards right
or left. Skewness range is usually considered between -1
and +1. It can be seen from table 4-2 that all the variables
used in the research have value of skewness falling within
the range which shows that the distribution of our data is
approximately symmetric.
b. Kurtosis
Kurtosis explains the relative sharpness and the height of
the distribution as compared to a normal distribution curve.
It is usually considered that the range of kurtosis should
remain between -3 and +3. It is quite clear from table 4-2
that the value of kurtosis for all the variables used in this
research falls within the range which shows that the data is
normally distributed.
c. Histograms
The Histograms of these variables are attached as shown
below.

CRONBACH’S ALPHA VALUE
Table 4.1: Cronbach’s Alpha Value
The data is examined for reliability using Cronbach alpha
for all the variables separately and for all of them combined
as well. Thus, data appeared reliable.
SCATTER PLOTS
Now, we would apply exploratory data analysis techniques
and examine the relationship among variables. So, the
simplest technique for examining relationship is scatter
plot.
The scatter plot indicates not specifically linear
relationship among TP and CS although we would examine
further linear relationship exists among other variables as
well or not.
The scatter plot among OTD and MS also indicated no
specific linear relationship among them. Although there
appeared only block of four values which presents only that
specific values.
CORRELATION ANALYSIS
The scatter plot indicated not specifically linear
relationship among two pairs of variables now we would
discuss relationship among all four pairs and examine the
relationship is significant or not. The significance of
relationship is discussed using p values for each pair of
pearson relationship.
Table 4.2: Correlations Matrix (Pearson)
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).
The relationship among all variables is almost positive
except Team Productivity and Management style as their
relationship is negative. Although we observe p-values for
all relationships is small so it seems significant relationship

among all pairs of variables that is also observed from
astaric * signs above all values in SPSS output. Further, we
observe the relationships are almost moderate as they are
nearly equal to 0.5 and the value of relationship considered
nearly equal to .5 is moderate relationship. While
relationship among customer satisfaction and on time
delivery is 0.76 which is largest among all relationships
and its strongest. Further, all variables have significant
relationship with dependent variable as well.
REGRESSION ANALYSIS
As, we observe significant relationship among all pairs of
variables using correlation analysis so further linear
relationship is discussed using regression analysis and
explored how much increase in one variable causes
increase or decrease in predictor variable. Here, project
cost and time is considered as dependent variable and
remaining variables act as independent variables.
Table 4.3: Model Summary
a. Predictors: (Constant), TP
b. Predictors: (Constant), TP, CS
c. Predictors: (Constant), TP, CS, OTD
d. Predictors: (Constant), TP, CS, OTD, MS
e. Dependent: PCnT
Among these regression equations the second model has
highest R square. So, we would say that maximum
variation is explained by this model so, team productivity
and customer satisfaction are explaining maximum
variations as compared to all independent variables.
a. Predictors: (Constant), TP
b. Predictors: (Constant), TP, CS
c. Predictors: (Constant), TP, CS, OTD
d. Predictors: (Constant), TP, CS, OTD, MS
e. Dependent: PCnT
The ANOVA table for all models are indicating
significance due to smallest p values which seems
goodness of fit for all models.
Table 4.4: ANOVA
Table 4.5: Model Summary

a. Dependent: PCnT
As shown in Table 4-5 model summary, the highest R
square appeared for second model while ANOVA also
indicated its significance of model so it is considered to be
the best model while detailed analysis indicated customer
satisfaction and team productivity have positive significant
impact on project cost and time variable. Further the model
equation would be written as;
Regression Equation
PCnT = 3.789 + 0.012 TP +0.805 CS
- HYPORESEARCH TESTING
The research requires to analyze which of independent
variable is significantly impacting on project time and cost.
So, t test is examined for all the coefficients and p values
determines their probability of rejection.
Table 4:6: t-values and the equivalent p-values
The table indicated that all variables have significant
impact on project time and cost separately due to largest t
statistics and smallest p-values.
VII. DISCUSSION OF RESULTS
The analysis indicated that independent variables team
productivity (TP), management style (MS), customer
satisfaction (CS) and on time delivery (OTD) all are
impacting significantly on project cost and time (PCnT).
Further, significant relationship exists among all of them
due to high correlation. Also, regression analysis is
performed to examine the linearity of model and the model
including team productivity (TP) and customer satisfaction
(CS) are expressing more variations as compared to others.
Thus, they have more impact among all independent
variables.
VIII. FINDINGS, CONCLUSIONS,
RECOMMENDATIONS
- Introduction
The preceding section deals with introducing evidence and
interpreting results in order to address the study's research
questions. The emphasis of this section is the review of
research-based results, study-derived recommendations,
and conclusion. The section further presents the study's
weaknesses and strengths. The aim of the analysis was to
examine the impact of cost and time on software
development using agile methods.
- Findings and Conclusion
It is important to mention here that success is measure by
the customer’s satisfaction, on time delivery, team
productivity and management style with the final product
and that is possible only in adopting agile software
development techniques and these techniques can lead to
project cost and time saving, the agile software
development creates agility in our software business
sector. The study provides insight on how to adopt and
retain agile software development in the existing software
industry within Pakistan. It also provides ways in which
the companies can adopt and sustain healthy use of agile
software development.
The main objective of the research was to analyses the
impact of agile methodology on project cost and time. In
addition to it, the results in section 4 of the case study
provide with some useful information. Keeping in view the
selected independent variables positively influence as
found to have major impact of team productivity (TP),
customer satisfaction (CS), on time delivery (OTD) and
Management style (MS) on Project cost and time that are
major findings by using Agile software development
methodologies in software industry. The independent
variables designed by summing the information of sample
questions are team productivity, customer satisfaction, on
time delivery and management style. The average showed
maximum worth for customer satisfaction therefore it
would say that there are largest percentage of contributors
who are satisfied with techniques. The scatter plot indicates
not specifically linear relationship among TP and CS and
also indicated no specific linear relationship among OTD
and MS. The relationship among all variables is almost
positive except Team Productivity and Management style
as their relationship is negative. Significant relationship
among all pairs of variables using correlation analysis.
regression analysis is performed to examine the linearity of
model and the model including team productivity and
customer satisfaction are expressing more variations as
compared to others and analysis indicated customer

satisfaction and team productivity have positive significant
impact on project cost and time variable.
Moreover, the findings of the study can be used to strength
and extend the existing models of Agile Software
development impact of project cost and time putting into
practice in software industry. Academically, the study
provides opportunity and avenue for research students who
want to conduct research in this field. In this way, the study
creates awareness among young researchers about the
Agile Software development impact on project cost and
time. Agile software development is providing more
opportunities for the software industry as it is focusing
more on the customer satisfaction / feedback and on time
delivery.by focusing features on the needs it will save the
project time and cost. Agile software developing is
prevailing techniques for the software development, not
only providing benefits the team productivity, customer
satisfaction/ Feedback, on time delivery and management
style but also maximizes the profit of the company by
providing good quality of work, delivering the projects on
the time and fulfil the customer satisfaction. They can
develop new Agile Software development techniques and
models for all types of projects.
Limitation and Contribution
As there is no agreed-upon way to measure the cost and
time of agile software development. As a result, it is
difficult to compare the cost and time of different agile
software development approaches. The research is limited
by its means of data collection. The data for the study has
been gathered only one time so, it has a limited insight. If
data might be collected more than one time it can yield
much accurate results. Major portion of the data has been
gathered from cities of Rawalpindi and Islamabad. The
study is limited in ways that only covers the two cities of
Pakistan not the overall markets of the country.
In the study, the respondents are all from Pakistan. If a
comparative study were to be done, it should be carried out
in other countries.
- Future Work
The past research statistics and experimental studies are
analyzed to fetch out the most relevant conclusions to this
study. A systematic experimentation and investigation
work was carried out to prove the results of the previous
studies and to form the factual evidence of this research.
Some major past experimentation has been consulted to
define the over-all idea of the underlying study.
In this study we have chosen 4 independent variables team
productivity (TP), customer satisfaction (CS), on time
delivery (OTD) and Management style (MS). This research
work can be extended by adding mediator variables. Like
by adding uncertainty as mediator variable in team
productivity can help out to extract more significant
results.
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