Procedures for determining internal software costs in Vietnam from April 26, 2024

Procedures for determining internal software costs in Vietnam from April 26, 2024 (Image from Internet)

On this issue, LawNet provides the following explanation:

On April 26, 2024, the Minister of Information and Communications issued Decision 671/QD-BTTTT guiding the determination of internal software costs.

Procedures for determining internal software costs in Vietnam from April 26, 2024

Determining internal software costs involves identifying the volume and calculation method based on operational work hours for implementation of use cases.

The procedures for determining internal software costs in Vietnam:

- Study and thoroughly understand the documents for determining internal software costs.

- Compile a list of agents participating in the system (Actors) according to Annex I of this Guidance.

- Compile a List of functional requirements for internal software according to Annex II of this Guidance.

- Compile a Table for converting functional requirements into use cases (Use Case) according to Annex III of this Guidance.

- Compile a Table for calculating the scores of actors (Actors) interacting and exchanging information with the internal software according to Annex IV of this Guidance.

This table is created by categorizing and accurately counting the agents in the Table for converting functional requirements into use cases in the documents for determining internal software costs.

- Compile a Table for calculating the scores of use cases according to Annex V of this Guidance.

This table is created by categorizing and accurately counting the use cases in the Table for converting functional requirements into use cases in the documents for determining internal software costs.

- Compile a Table for calculating technical-complexity coefficients according to Annex VI of this Guidance.

This table must comply with non-functional requirements, technical-complexity requirements of the software in the documents for determining internal software costs.

- Compile a Table for calculating environmental impact coefficients, working group, environmental complexity coefficients according to Annex VII of this Guidance.

This table must comply with the competency requirements of participating staff, environmental requirements for constructing, developing, expanding software in the documents for determining internal software costs.

- Extrapolate experience evaluation, extrapolate labor time based on the Table for calculating environmental impact coefficients, working group, environmental complexity coefficients, determine experience stability and extrapolate labor time at Annex VII of this Guidance.

- Determine the average labor wage rate for constructing, developing, expanding internal software.

- Compile a Table summarizing values calculated in the above steps into the Table of direct costs for constructing, developing, expanding internal software according to Annex VIII of this Guidance.

- Compile a Table summarizing internal software costs according to the guidance on the method for calculating internal software costs at point b section 2.1 Annex 02 Circular 04/2020/TT-BTTTT stipulating the establishment and management of IT project costs.

(Article 6 Guidance issued with Decision 671/QD-BTTTT in 2024)

Requirements and detailed instructions for determining internal software costs in Vietnam

According to Article 4 Guidance issued with Decision 671/QD-BTTTT in 2024 stipulating the requirements and detailed instructions for determining internal software costs in Vietnam:

- Internal software costs must be calculated in accordance with the approved design’s technical, technological solutions; the construction, development, upgrade, expansion sequence of the software.

- Internal software costs must be accurately and fully calculated and must comply with the principle of no duplication.

- Data used in determining internal software costs must align with the documents for determining internal software costs guided in Article 5.

- Explanations, annotations, or instructions related to the process of determining internal software costs must be clear, concise, and easy to understand, fitting with the content of supporting documents for determining internal software costs and adding specific explanations (if any).

- The investor is responsible for the accuracy in determining agents (Actors), use cases (Use Case), transactions (Transaction) according to Annex I, Annex III of this Guidance.

- Based on the nature, scale, and technical requirements necessary for internal software, the investor may consider utilizing or adapting the examples to determine the rating values for technical-complexity coefficients according to Annex VI, environmental impact coefficients, working group according to Annex VII of this Guidance and is responsible for determining these rating values.

The determination of rating values must be based on non-functional requirements, technical-complexity requirements of the software for technical-complexity coefficients; competency requirements of participating staff for environmental impact coefficients, working group.

- For developing, expanding applications on mobile devices; expanding internal software functionality, the construction, development, and expansion costs are calculated as per the guidance in this document.

- For upgrading existing functionality within the internal software, if upgrading costs cannot be calculated according to this document’s guidance, other methods stipulated in Clause 4 Article 19 Decree 73/2019/ND-CP should be used to determine the costs.

- When the referenced documents in this text are amended, supplemented, or replaced by newer documents, the new documents shall apply.

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