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Software Factories In India - Why & How they adopt CMM/CMMI models

Software Factories In India - Why & How they adopt CMM/CMMI models. i-flex consulting. 18/11 2004. www.iflexconsulting.com. Indian IT Industry – Back ground The Recipe for Success The Value Proposition Why Process? Need for a Model Based Process Improvement.. Why CMM & CMMI?

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Software Factories In India - Why & How they adopt CMM/CMMI models

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

  2. 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.. Agenda 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 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 18/11/2004

  5. 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 Ingredients of Indian IT success 18/11/2004

  6. The Recipe for success.. PEOPLE PROCESS TECHNOLOGY Major determinants of software cost, schedule, and quality performance Source:: SEI 18/11/2004

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

  8. 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 Common Points In Process & Quality Management 18/11/2004

  9. 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 Why use a Process Improvement Paradigm? 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 1980s – Quality Assurance In 1970’s - Quality Control 18/11/2004

  11. 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 CMM/CMMI - Simple Concepts 18/11/2004

  12. Process maturity profile of Indian Companies.. 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! 18/11/2004

  14. 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 should not be Why people are using CMMI... 3 18/11/2004

  15. 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 Why CMM / CMMI? - The real drivers.. 18/11/2004

  16. 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 CMM/CMMI Implementation Metrics 18/11/2004

  17. Ability to integrate large teams 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 Operating at Highest Process Maturity 18/11/2004

  18. Advantages of CMM/CMMI.. 18/11/2004

  19. 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) How Indian IT Companies have adopted CMM/CMMI.. 18/11/2004

  20. USE OF MODELS ISO CMM CMMI The Process Model PROCESS & QUALITY IMPROVEMENT PLANNING (STANDARDS & PROCEDURES) ASSESSMENTS/APPRAISALS) PROCESS ROLL-OUT 18/11/2004

  21. Path to Maturity.. 18/11/2004

  22. Develop Transition Plan Training Class C Appraisal Revise Plan Develop PQIP Process Development Process Deployment Revise PQIP Class B Appraisal Class A Appraisal CMM to CMMI-Transition Methodology 18/11/2004

  23. 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 Some good Adoption Techniques.. 18/11/2004

  24. Promotr Management Portal 18/11/2004

  25. An Automated Process Enactment Environment Metrics Database Baseline Report Project Closure QuBase - Processes- Templates, Guides 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 18/11/2004

  27. 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 Planning (Work flow) Project Manager Develop Project Plan Verification by SQA and Peer Feed back Sign-off and Baseline Verification by other groups 18/11/2004

  28. Monitor…. • Actual values of planning parameters • Cost, Effort and Schedule • Attributes of Work products • Resources • Commitments and milestones • Risks • Project data • Stakeholder involvement Project Monitoring and Control (Work flow) Project Manager Identify issues, Take Corrective actions and track to closure Monitor Project Plan Verification by SQA 18/11/2004

  29. Select … Products and Vendors Acquisition methods Critical requirements Supplier Agreement Management (Work flow) Project Select Product and Vendors Evaluate products and Vendors Verification by SQA Develop acquisition and Transition plan 18/11/2004

  30. Establish .. Measures Objectives Data collection, analysis, storage and reporting Measurement and Analysis(Work flow) Project Measure, Analyze and Report for decision making Measurement plan Verification by SQA 18/11/2004

  31. Processes • Procedures • Standards • Work products • Services Process and Product Quality Assurance (Work flow) Quality Assurance Identify non-compliances and Report Objectively evaluate Maintain records of quality assurance activities Ensure resolution of non-compliance issues 18/11/2004

  32. Configuration Management (Work flow) Project Manager Identify Configuration Items Establish Configuration Management System Establish Baselines and Track Changes Conduct Baseline audits and Report Status 18/11/2004

  33. QuBase Decision Analysis and Resolution (Work flow) Guidelines for Decision Analysis and Resolution Evaluation Criteria Identify DAR Team PMO Customer CRM Product Engineering PQMG SQA Identify Alternative Solutions Document Solutions and Rationale Select Appropriate Solutions Evaluate Alternatives Select Evaluation Methods 18/11/2004

  34. 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 Benefits… 18/11/2004

  35. Faster delivery Higher reliability Reduced defect density Better stability of products Easy maintainability More predictable performance Better support Benefits to Customer 18/11/2004

  36. "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 What global business leaders say.. 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 18/11/2004

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