18/11/2004 1Indian IT- Quality Journey
Software Factories In India -
Why & How they adopt CMM/CMMI models
i-flex consulting www.iflexconsulting.com18/11 2004
18/11/2004 3Indian IT- Quality Journey
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..
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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
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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-
Others0.5%
USA63%
Japan3.5%
Europe22%
Asia Pac11%
Source:www.nasscomm.org & Dataquest
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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
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PEOPLE
PROCESS TECHNOLOGY
Major determinants of software cost, schedule, and quality performance
Source:: SEI
The Recipe for success..
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Procedures and methodsdefining the relationship
of tasks
Tools andequipment
Peoplewith skills,
training, andmotivation
PROCESS
AB
CD
Source:: SEI
Definition of Process..
The means by which people, procedures, methods, equipment, and tools are integrated to produce a desired end result.
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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
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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
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Adaptation History by India IT Companies
In 1970’s - Quality ControlIn 1970’s - Quality Control
In 1980s – Quality Assurance In 1980s – Quality Assurance
In 1985’s – IEEEIn 1985’s – IEEE
In 1994 – QMS & ISO 1994In 1994 – QMS & ISO 1994
In 1995 – Sw-CMM In 1995 – Sw-CMM
In 2000 – Six Sigma, ISO 2000In 2000 – Six Sigma, ISO 2000
In 2002 – CMMIIn 2002 – CMMISMSM
Over 200+ Over 200+ Indian IT Indian IT
Organizations Organizations have CMM / have CMM /
CMMI Quality CMMI Quality CertificationsCertifications
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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
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Process maturity profile of Indian Companies..
Quality Accreditations Quality Accreditations No. of .Organizations No. of .Organizations
SEI CMMISEI CMMISMSM Level 5 Level 5 1515
SEI CMM Level 5SEI CMM Level 5 7070
SEI CMM Level 4SEI CMM Level 4 2424
SEI CMM Level 3SEI CMM Level 3 2222
SEI CMM Level 2SEI CMM Level 2 33
PCMM Level 5 PCMM Level 5 77
ISO 9001: 2000 ISO 9001: 2000 7575
ISO 9000ISO 9000 170170
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India 333
China 152
UK 133
France 124
Japan 113
60% of the CMM/CMMI certified companies are from India!
Number of Appraisals Reported to the SEI by Country (top 5)
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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
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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
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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 pre-
test• Up to 25 % reduction (yearly) in time to market• Up to 94 % reduction per year in field error reports
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Operating at Highest Process Maturity
Operating at Highest Process Maturity
Ability to integrate large teamsAbility to integrate large teams
The mean annual growth in productivity over the last five years has been 5 percent
The mean annual growth in productivity over the last five years has been 5 percentThe mean annual
reduction in defect density in the same period has been 15 percent
The mean annual reduction in defect density in the same period has been 15 percentThe price of non-
conformance has almost halved in the last four years
The price of non-conformance has almost halved in the last four years85 percent of our investments
in process improvement are recovered through productivity and defect density improvements alone
85 percent of our investments in process improvement are recovered through productivity and defect density improvements alone
Some Sample Results & Achievements by Indian Companies
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Before Before AfterAfter
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
Advantages of CMM/CMMI..
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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)
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(STANDARDS & PROCEDURES)(STANDARDS & PROCEDURES)PROCESS & QUALITY IMPROVEMENT PLANNING
PROCESS & QUALITY IMPROVEMENT PLANNING
USE OF MODELSUSE OF MODELS
CMMI
ISO
CMM
ASSESSMENTS/APPRAISALS)
ASSESSMENTS/APPRAISALS)
PROCESS ROLL-OUT
The Process Model
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Develop Transition
Plan
Training
Class C Appraisal
Develop PQIP
Class B Appraisal
Process Deploymen
t
Process Developme
nt
Class A Appraisal
Revise Plan
Revise PQIP
CMM to CMMI-Transition Methodology
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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
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Reusable Components- Processes- Templates, Guides
Metrics Database
Project Closure
Baseline Report
QuBase
An Automated Process Enactment Environment
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Requirements Management (Work flow)
Analyze and identify Requirements Document
Requirements Establish bidirectional traceability and identify
inconsistencies
Verification by SQA and Peer
Sign-off and Baseline
Manage Changes – Requirements Status and control baseline
Verification by Sr.Management
Obtain commitments from relevant project participants
Monitor and control with appropriate measures
ProjectPlanning
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Project Planning (Work flow)
Develop Project Plan Verification by SQA and Peer
Sign-off and Baseline
Verification by Sr.Management
Obtain commitments from relevant Stakeholders
Establish WBSEstimate
•Attributes of Work Products •Effort, Cost and Resources •Establish Budget and Schedule
Identify and Analyze Risks Identify and plan Stakeholder involvementIdentify External commitments Deliverables
Project Manager
Verification by other groups
Feed back
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Project Monitoring and Control (Work flow)
Monitor Project Plan
Identify issues, Take Corrective actions and
track to closure
Verification by Sr.Management
Obtain commitments from relevant Stakeholders and other groups
Monitor….
•Actual values of planning parameters •Cost, Effort and Schedule•Attributes of Work products•Resources •Commitments and milestones•Risks •Project data •Stakeholder involvement
Project Manager
Verification by SQA
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Supplier Agreement Management (Work flow)
Select Product and Vendors
Evaluate products and Vendors
Verification by Sr.Management
Obtain commitments from relevant Stakeholders and other groups
Select …Products and VendorsAcquisition methods Critical requirements
Project
Verification by SQA Develop acquisition
and Transition plan
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Measurement and Analysis(Work flow)
Measurement plan Measure, Analyze and Report for decision
making
Verification by Sr.Management
Obtain commitments from relevant Stakeholders and other groups by informing measurement status
Establish ..
Measures Objectives Data collection, analysis, storage and reporting
Project
Verification by SQA
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Process and Product Quality Assurance (Work flow)
Identify non-compliances and Report
Verification by Sr.Management
Objective evaluation of quality assurance activities
Quality Assurance
Objectively evaluate
Ensure resolution of non-compliance issues
Maintain records of quality assurance
activities
• Processes • Procedures • Standards• Work products
• Services
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Configuration Management (Work flow)
Identify Configuration Items
Establish Configuration Management System
Verification by Sr.Management
Inform to relevant Stakeholders and other groups about the status of Configuration items
Maintain integrity of baselines
Project Manager
Establish Baselines and
Track Changes Conduct Baseline audits
and Report Status
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Decision Analysis and Resolution (Work flow)
Guidelines for Decision
Analysis and Resolution
QuBaseQuBaseEvaluation Criteria
Identify Alternative Solutions
Identify DAR Team
Select Appropriate
Solutions
Select Evaluation Methods
Evaluate Alternatives
Document Solutions and
Rationale
PMOCustomer
CRMProduct Engineering
PQMGSQA
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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
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Benefits to Customer
• Faster delivery• Higher reliability• Reduced defect density• Better stability of products• Easy maintainability• More predictable performance• Better support
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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
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Thank youThank you
Contact: Contact:
G. R. Sivaramakrishnan G. R. Sivaramakrishnan
SCAMPI Lead Appraiser SCAMPI Lead Appraiser
E-mail : [email protected] : [email protected]
i-flex solutions Ltd.i-flex solutions Ltd.
SEI-Transition Partner
Bangalore, India
Telephone:+91-80-5759-6515