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Allocation Factor

The allocation factor is our method in estimations to account for the fact that our employees cannot spend 100% of their time on development.

It is a fact of any workplace that employees are not able to dedicate 100% of their time to their primary role at work. Activities such as meetings, assisting colleagues and alternate side projects take up their time and should be recognised when estimations are being considered. In our process, this is done by applying what we call an allocation factor, which assumes that our development team is able to work on active development for 80% of their time.

Once we have an estimation including risk, we then multiply it by 1.25 to calculate an estimation which also includes allocation factor.
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