Computer software has emerged as a major worldwide industry, estimated at $450B for 1995 of which $225B is attributable to US firms [Boehm, 1987]. Yet, in many organizations, costs and schedules for software projects are largely unpredictable, and product quality is often poor [DeMarco and Lister, 1993]. This underscores the need to study both the quality of the software product and the life-cycle cost incurred in the development and maintenance of the products. Increasing expenditure in software has caught the attention of researchers. Identifying software productivity factors and estimating software costs continue to be important research topics [Mukhopadhyay and Kekre, 1992; Banker et al., 1993]. Researchers have adopted both empirical and theoretical approaches to better understand the process of software development and maintenance. Though software cost continues to be an important research question, competition in the software industry and the increased role of software in everyday life have also made development cycle time and quality important research issues. The quality of software has been studied mainly from defect analysis and software maintenance perspectives. Empirical research has analyzed tradeoffs between software quality and maintenance, and examined drivers of software maintenance costs [Banker, et al., 1993]. Practitioners in the software industry are still faced with the challenge of understanding the key tradeoffs in a software project in order to deliver quality products to customers on time and without cost overruns. This underscores the need to study the various factors that influence the life-cycle cost and quality in software products. Moreover, the effect of the process used in a software project on the outcome of the project in terms of cost to the software developer and quality of the product has not been examined rigorously. Thus in this research, we propose to model the life-cycle cost and quality of software products based on the factorsrelated to product, people, process and technology deployed in the software projects