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Software is often priced to gain a contract and the functionality of the system is then...

Software is often priced to gain a contract and the functionality of the system is then adjusted to meet the estimated price. Why? Explain.

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In any organization ,it is always difficult for an IT Manager to convince the top level management to purchase a new software to perform some specific task, because the first question  raised by top level management(TLM) is "why we should spend some money to purchase a new software?"

So, it is the responsibility of IT Manager to convince the top level management because in most of the cases TLM evaluates each demand of IT manager in term of financial profit.

It means IT manager is required to prove that the price of the new software is less than the profit which will be earned by the new software.(For example:- new software can complete more tasks in a short period to earn more profits.)

So the software development company always quotes the price of software to convince the Top Level Management(TLM).

That's why Software is often priced to gain a contract and the functionality of the system is then adjusted to meet the estimated price

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