Function points were defined in 1979 in ''Measuring Application Development Productivity'' by AllanAllen Albrecht at [[IBM]].<ref>A. J. Albrecht, "Measuring Application Development Productivity," Proceedings of the Joint SHARE, GUIDE, and IBM Application Development Symposium, Monterey, California, October 14–17, IBM Corporation (1979), pp. 83–92.</ref> The [[functional requirements|functional user requirements]] of the software are identified and each one is categorized into one of five types: outputs, inquiries, inputs, internal files, and external interfaces. Once the function is identified and categorized into a type, it is then assessed for complexity and assigned a number of function points. Each of these functional user requirements maps to an end-user business function, such as a data entry for an Input or a user query for an Inquiry. This distinction is important because it tends to make the functions measured in function points map easily into user-oriented requirements, but it also tends to hide internal functions (e.g. algorithms), which also require resources to implement.
There is currently no ISO recognized FSM Method that includes algorithmic complexity in the sizing result. Recently there have been different approaches proposed to deal with this perceived weakness, implemented in several commercial software products. The variations of the Albrecht-based IFPUG method designed to make up for this (and other weaknesses) include:
