A Systematic Literature Review on Reasons and Approaches for Accurate Effort Estimations in Agile

Abstract: Background: Accurate effort estimation is crucial for planning in Agile iterative development. Agile estimation generally relies on consensus-based methods like planning poker, which require less time and information than other formal methods (e.g., COSMIC) but are prone to inaccuracies. Understanding the common reasons for inaccurate estimations and how proposed approaches can assist practitioners is essential. However, prior systematic literature reviews (SLR) only focus on the estimation practices (e.g., [26, 127]) and the effort estimation approaches (e.g., [6]). Aim: We aim to identify themes of reasons for inaccurate estimations and classify approaches to improve effort estimation. Method: We conducted an SLR and identified the key themes and a taxonomy. Results: The reasons for inaccurate estimation are related to information quality, team, estimation practice, project management, and business influences. The effort estimation approaches were the most investigated in the literature, while only a few aim to support the effort estimation process. Yet, few automated approaches are at risk of data leakage and indirect validation scenarios. Recommendations: Practitioners should enhance the quality of information for effort estimation, potentially by adopting an automated approach. Future research should aim to improve the information quality, while avoiding data leakage and indirect validation scenarios.