Software Factories In India Why How they

Software Factories In India Why & How they adopt CMM/CMMI models i-flex consulting 18/11 2004 Indian IT- Quality Journey 18/11/2004 www. iflexconsulting. com 1

Agenda • • • Indian IT Industry – Back ground The Recipe for Success The Value Proposition Why Process? Need for a Model Based Process Improvement. . Why CMM & CMMI? Some Unique Implementation Methods Benefits. . Q&A. . Indian IT- Quality Journey 18/11/2004 3

Indian IT Industry – The Background • • Software Industry Turnover of Rs. 337 billion (US$ 7. 42 billion) in 2003 -04 Growth of 11 % over previous year • • Domestic Market revenue Rs. 154 million (US$ 3. 37 billion) Domestic Market Growth rate is 14. 8% Several Indian IT companies listed on the NYSE and NASDAQ Export market expected to grow by 30% by Mar 2005 Indian IT- Quality Journey 18/11/2004 4

Market Composition • • Over 3500 IT Services Organizations Successful Product Companies (eg, . i-flex) Leading companies have setup development centers – SAP , Adobe, Microsoft, Baan, Quark, Intel, HP, Lucent…. Software Exports to- Source: www. nasscomm. org & Dataquest Indian IT- Quality Journey 18/11/2004 5

Ingredients of Indian IT success • • • Very Strong Process Focus Aligning Business goals with Process Improvement goals Continuous Improvement is a way of life Controlled adaptation of new technologies Ability to Train & integrate Human Resources (500, 000 skilled workers) through planned training programs • Ability to scale-up against ever-growing Business requirements (250 of Fortune 500 Outsource to India!) with a well established Process framework • Large presence of leading “quality conscious” multi-national companies (e. g. i-flex, Citigroup, Hewlett Packard, Motorola, Lucent, Samsung, British Telecom) • Presence of more than 10 SPINs (Software Process Improvement Networks) to share Industry Best Practices Indian IT- Quality Journey 18/11/2004 6

The Recipe for success. . PEOPLE PROCESS TECHNOLOGY Major determinants of software cost, schedule, and quality performance Source: : SEI Indian IT- Quality Journey 18/11/2004 7

Definition of Process. . The means by which people, procedures, methods, equipment, and tools are integrated to produce a desired end result. B A D C Procedures and methods defining the relationship of tasks PROCESS People with skills, training, and motivation Indian IT- Quality Journey Tools and equipment Source: : SEI 18/11/2004 8

Common Points In Process & Quality Management • Enabling improvement is a management responsibility • Improvement focuses on fixing the process, not on blaming the people • Improvement must be measured and periodically reinforced • Improvement requires constancy of investments, rewards, and incentives • Improvement is a continuous process Indian IT- Quality Journey 18/11/2004 9

Why use a Process Improvement Paradigm? • Characterize the current state of software practice • Set objectives and priorities for process improvement • Establish a plan for process improvement and technology insertion • Assign dedicated resources • Assess progress against improvement goals • Guidance on Process Improvement • Reference to proven Best Practices across the industry • Provides support for Benchmarking • Provides support for external rating • Supports inter/intra organization maturity comparison Indian IT- Quality Journey 18/11/2004 10

Adaptation History by India IT Companies Over 200+ Indian IT Organizations have CMM / CMMI Quality Certifications In 2002 – CMMISM In 2000 – Six Sigma, ISO 2000 In 1995 – Sw-CMM In 1994 – QMS & ISO 1994 In 1985’s – IEEE In 1980 s – Quality Assurance In 1970’s - Quality Control Indian IT- Quality Journey 18/11/2004 11

CMM/CMMI - Simple Concepts • • • Evolution is possible and takes time There are distinguishable stages of evolution Evolution implies that some things must be done before others Maturity will erode unless sustained A step-by-step approach to process maturity Starts at initial Level 1 Goes all the way to Level 5 - the highest maturity Higher levels can be attained only by attaining all the lower levels Indian IT- Quality Journey 18/11/2004 12

Process maturity profile of Indian Companies. . Quality Accreditations No. of. Organizations SEI CMMISM Level 5 15 SEI CMM Level 5 70 SEI CMM Level 4 24 SEI CMM Level 3 22 SEI CMM Level 2 3 PCMM Level 5 7 ISO 9001: 2000 75 ISO 9000 170 Indian IT- Quality Journey 18/11/2004 13

Number of Appraisals Reported to the SEI by Country (top 5) India 333 China 152 UK 133 France 124 Japan 113 60% of the CMM/CMMI certified companies are from India! Indian IT- Quality Journey 18/11/2004 14

Why people are using CMMI. . . should not be • • • We have to be Level 3 Because we are told to So we don’t get burned by Audit Everyone else is doing it If we don’t, we will be outsourced Somebody told me it’s important 3 Indian IT- Quality Journey 18/11/2004 15

Why CMM / CMMI? - The real drivers. . • Cost effective - Export Orientation • Need to meet Global customer demands & growing business needs • Need of Controlled & well established Process to meet the rapid business growth • Need to Manage technology changes • Continuous Improvement • Rigorous assessment methodology by independent Assessors • Structured Approach to Process Maturity • Based on Industry best practices • Widely acclaimed model Indian IT- Quality Journey 18/11/2004 16

CMM/CMMI Implementation Metrics • US $ 500 - 2000 per software engineer spent annually on process improvement • Up to 67 % productivity gain (LOC per unit of time) • Up to 25 % increase in proportion of defects found pretest • Up to 25 % reduction (yearly) in time to market • Up to 94 % reduction per year in field error reports Indian IT- Quality Journey 18/11/2004 17

Some Sample Results & Achievements by Indian Companies The mean annual growth in productivity over the last five years has been 5 percent The mean annual reduction in defect density in the same period has been 15 percent The price of non-conformance has almost halved in the last four years 85 percent of our investments in process improvement are recovered through productivity and defect density improvements alone Ability to integrate large teams Operating at Highest Process Maturity Indian IT- Quality Journey 18/11/2004 18

Advantages of CMM/CMMI. . Before After Unrealistic deadlines were set. Overstay a common feature Realistic scheduling quantitatively based on productivity & size Projects were following own standards & processes they found suitable Standardized processes for each projects with proper tailoring needed Each project measured its required information for its needs Organization wide metrics captured & monitored in line with organization goals Each Project having its own targets based on its experience & customer commitments Project sets achievable targets based on Org-Baseline, its own capability analysis & in agreement with customer commitments Problems were analyzed through discussion Problems are identified & resolved based on quantitative analysis using the control charts & pareto analysis Training was provided as on required basis Organization wide resource skills mapped to required skills. Trainings plan in advance & provided as schedule Indian IT- Quality Journey 18/11/2004 19

How Indian IT Companies have adopted CMM/CMMI. . • • • Compelling reasons to differentiate as a quality vendor Involvement of Special IT Task Force Through SPINs & other Knowledge sharing forums Process maturity as a way of life Increased use of automation Structured & continuous training on Process & Quality framework (CMM, CMMI) Indian IT- Quality Journey 18/11/2004 20

The Process Model PROCESS & QUALITY IMPROVEMENT PLANNING USE OF MODELS (STANDARDS & PROCEDURES) ASSESSMENTS /APPRAISALS) PROCESS ROLL-OUT ISO CMMI Indian IT- Quality Journey 18/11/2004 21

Path to Maturity. . Indian IT- Quality Journey 18/11/2004 22

CMM to CMMI-Transition Methodology Develop Transition Plan Training Revise Plan Class C Appraisal Develop PQIP Process Development Process Deployment Revise PQIP Class B Appraisal Class A Appraisal Indian IT- Quality Journey 18/11/2004 23

Some good Adoption Techniques. . • • Project Kick-off meeting End-to-end Automation of Process workflow Process Change Control Board (PCCB) Technology Change Control Board (TCCB) Software rating Defect Prevention Control Board (DPCB) Use of multiple methodologies (Waterfall, Data Warehousing development, Product Development etc, . ) • Corporate Metrics program Indian IT- Quality Journey 18/11/2004 24

Promotr Management Portal Indian IT- Quality Journey 18/11/2004 25

An Automated Process Enactment Environment Baseline Report Metrics Database Project Closure Qu. Base - Processes - Templates, Guides Indian IT- Quality Journey Reusable Components 18/11/2004 26

Requirements Management (Work flow) Analyze and identify Requirements Document Requirements Establish bidirectional traceability and identify inconsistencies Sign-off and Baseline Verification by SQA and Peer Project Planning Manage Changes – Requirements Status and control baseline Verification by Sr. Management Obtain commitments from relevant project participants Monitor and control with appropriate measures Indian IT- Quality Journey 18/11/2004 27

Project Planning (Work flow) Establish WBS Estimate • Attributes of Work Products • Effort, Cost and Resources • Establish Budget and Schedule Identify and Analyze Risks Identify and plan Stakeholder involvement Identify External commitments Deliverables Project Manager Develop Project Plan Verification by SQA and Peer Feed back Sign-off and Baseline Verification by other groups Verification by Sr. Management Obtain commitments from relevant Stakeholders Indian IT- Quality Journey 18/11/2004 28

Project Monitoring and Control (Work flow) Monitor…. Project Manager • Actual values of planning parameters • Cost, Effort and Schedule • Attributes of Work products • Resources • Commitments and milestones • Risks • Project data • Stakeholder involvement Monitor Project Plan Identify issues, Take Corrective actions and track to closure Verification by SQA Verification by Sr. Management Obtain commitments from relevant Stakeholders and other groups Indian IT- Quality Journey 18/11/2004 29

Supplier Agreement Management (Work flow) Select … Products and Vendors Acquisition methods Critical requirements Select Product and Vendors Project Evaluate products and Vendors Develop acquisition and Transition plan Verification by SQA Verification by Sr. Management Obtain commitments from relevant Stakeholders and other groups Indian IT- Quality Journey 18/11/2004 30

Measurement and Analysis(Work flow) Establish. . Measures Objectives Data collection, analysis, storage and reporting Project Measurement plan Measure, Analyze and Report for decision making Verification by SQA Verification by Sr. Management Obtain commitments from relevant Stakeholders and other groups by informing measurement status Indian IT- Quality Journey 18/11/2004 31

Process and Product Quality Assurance (Work flow) • • • Quality Assurance Processes Procedures Standards Work products Services Objectively evaluate Maintain records of quality assurance activities Identify noncompliances and Report Ensure resolution of non -compliance issues Verification by Sr. Management Objective evaluation of quality assurance activities Indian IT- Quality Journey 18/11/2004 32

Configuration Management (Work flow) Identify Configuration Items Project Manager Establish Configuration Management System Conduct Baseline audits and Report Status Establish Baselines and Track Changes Verification by Sr. Management Inform to relevant Stakeholders and other groups about the status of Configuration items Maintain integrity of baselines Indian IT- Quality Journey 18/11/2004 33

Decision Analysis and Resolution (Work flow) Guidelines for Decision Analysis and Resolution Evaluation Criteria Identify DAR Team PMO Customer CRM Product Engineering PQMG SQA Document Solutions and Rationale Select Appropriate Solutions Indian IT- Quality Journey Evaluate Alternatives Qu. Base Identify Alternative Solutions Select Evaluation Methods 18/11/2004 34

Benefits… • • • Strong Quality and IT processes Knowledge sharing Establishing learning Organizations Controlled Processes to meet global demands Increased Client satisfaction Increased efficiency Cost effective services and solutions Established effective communication channel Transparent Processes – Vendor Management Enhanced risk management and project management Increased awareness on Process culture Indian IT- Quality Journey 18/11/2004 35

Benefits to Customer • • Faster delivery Higher reliability Reduced defect density Better stability of products Easy maintainability More predictable performance Better support Indian IT- Quality Journey 18/11/2004 36

What global business leaders say. . • "A truly global company will be one that uses the intellect and resources of every corner of the world. India is a developed country as far as intellectual capital is concerned. The opening of (offshore) development centers mark a new level of commitment by GE in india. " - Jack Welch, General Electric • "We are expanding our presence in India to take advantage of the ample research and development talent available. . . our Global Development Centre is a critical component of our future success. " John Chambers, CISCO Systems • "Three years ago, during my visit to India, the country was emerging as an IT superpower. Today, the country is handling the most sophisticated projects in the world. . . I am impressed with the talent we have in our India Development Centre and the quality of software being developed. " - Bill Gates, Microsoft Indian IT- Quality Journey 18/11/2004 37

Thank you Contact: G. R. Sivaramakrishnan SCAMPI Lead Appraiser E-mail : gr. sivaramakrishnan@iflexsolutions. com i-flex solutions Ltd. SEI-Transition Partner Bangalore, India Telephone: +91 -80 -5759 -6515 Indian IT- Quality Journey 18/11/2004 38