In general, the software development business works in the following manner:
There are several steps that needs to be completed,
1. Identifying prospects needs.
2. Analyzing their business process and management (i.e., Business Analysis).
3. Identifying their requirements (i.e., Requirement Analysis).
4. Cost Analysis.
5. Creating and presenting a proposal.
6. Sign of Agreement.
7. Developing Process.
8. System Analysis and Designing.
9. Coding by Software Engineers.
10. System Integration.
11. Testing Phase.
12. Training and Documentation, and hand over of project to the sponsor.
Usually, after handing over a software project, a time for training and technical support is offered, which can be renewed.
The over all project is divided into several phases. An initial deposit by a sponsor is required to initiate the project. And the payments would have to be made on installments as we would move from a phase to another. All payments must be complete before handing over the software.
Developing a software is a team work. Number of team members will be determined on the basis of,
1. Complicacy of a project.
2. Skill sets required for the job.
3. Time frame given to complete it.
In cost analysis, we must take unforeseen circumstances under consideration. They could be, illness of a team member, political strikes, frequent change requests from sponsor, unexpected technical difficulties, etc.