Need for Process Management in IT and ITES

Chandra Kumar Raman Lead – Quality / Master Black Belt – HP President – SPIN Chennai [email_address]

Chandra Kumar Raman
Engineering graduate with P.G Diploma in Management
Certified
Master Black belt from ISI
ISO 9000 Lead Auditor
Scrum Master
Lean Leader
ITIL V3.0 professional
21 years of experience in Quality Process/ Delivery excellence . Adept in the application of ISO, CMM, CMMi, PCMM and Six Sigma
Currently associated with HP in their Quality operations as a Programme Manager and driving the initiatives
President of SPIN Chennai
Program Chair ASQ chennai
Member of the board of studies of ICTAT
Syllabus revision committee member : Reviewed the PG syllabus of ME (Quality) of Anna University and designed syllabus for Lean Sigma and Quality Assurance and Business Excellence models
Advisory board member and jury for various conferences /conventions
Brief on me…

SPIN Chennai
SPIN, Chennai ( Software Process Improvement Network ) is a forum of Software Professionals for the free and open exchange of software process improvement experiences and ideas. The organization serves as a source of educational, scientific and practical information for its members, other SPIN organizations, and the general software community. The SPIN Group aims to be a leadership forum for free and open exchange of SPI experiences and ideas, covering all aspects of how an organization improves the way it develops and maintains software and delivers software intensive services. SPIN organizes a variety of meetings, all aimed at mutual self-help for practitioners.
SPIN Chennai was formed as early as 1994 and was one of the earliest SPIN chapters in India. It has been functioning as a voluntary body of Software professionals since then. Since its inception it has held numerous talks featuring many interesting topics on Software Process improvement featuring some outstanding personalities viz.. Dr. Watts Humphrey (SEI), Mr. Steve Masters (SEI), Mr. David Reo (European Software Institute), , Mr. Terry Rout , International Office - Griffith University, Mr. Lakshmi Narayanan - CTO, Cognizant Technology Solutions, Mr. Steve Shook , AIS Inc.
FAQ – SPIN : Refer  http://www.sei.cmu.edu/collaborating/spins/faq.html
Visit www.spinchennai.org for more details

Est ablish a leadership forum for open exchange of software process improvement experiences and ideas
Promote achieving higher levels of process maturity and software quality .
Mission & Vision

Monthly Knowledge sharing sessions
Annual conference
Best Practices sharing
Academia collaboration
Collaboration with other professional forums
Activities

IT-BPO Sector revenue USD 88.1 Billion(FY2011)
Direct Employment- 2.5 million
Indirect Employment- 8.3 million
6.4% of India’s GDP
14% of total exports
10 % of India’s service sector revenues

Indian IT Industry CAGR: 21% IT-BPO Industry size $28.1 Bn $37.4 Bn $47.9 Bn $62.9 Bn $69.4 Bn $73.1 Bn The industry continues to be an export led sector with foreign providers accounting for over 30% of the total market

IT Industry Impact on Indian Economy Source: Nasscom Areas Impact Employment Creation
45% of new urban jobs created (1995-2005)
Contribution to Education
6-7x fold increase in tertiary education in exporting states
Diversity and Global Exposure
Women in the workforce estimated to be 30%; new entrants-45%
30% of delivery outside India
Contribution to Exports
Exports offset close to 65% of India’s cumulative net oil imports over past decade

Global IT spending
Worldwide IT spending is forecast to total $3.67 trillion in 2011, a 7.1 percent increase from $3.43 trillion in 2010, according to the latest outlook – Gartner

Gaining laurels : Indian IT services
India’s IT spending is likely to double between 2007 and 2012 , touching $110bn – Gartner

Gartner @ Economic times Nov 28, 2008 How about the competitors India’s Outsourcing Rating Criterion Rating Language Very good Government support Excellent Labor pool Excellent Infrastructure Fair Education system Very good Cost Very good Political and Economic Environment Very good Cultural compatibility Good Global and Legal Maturity Very good Data and Intellectual property, Security and privacy Good

Our Pie in IT Outsourcing
The global outsourcing industry, including offshoring and onshoring, is estimated to reach $464 billion in 2011,
Revenue of the off shoring segment to amount to $144.8 billion.
India will capture 42.5 % of the offshore market to reach $61.5 billion in revenues,
China will continue to lag India with revenues reaching $45.7 billion equivalent to 31.5 % of the market
The Philippines will still hold the third spot with estimated revenue of $10.7 billion capturing 7.4 %.
Source : Canadian-based ICT research and advisory think tank, XMG Global – 27 th July 2011

Competition
China also has a stronger hold in the domestic BPO market. In 2010, more than 75 percent of service outsourcing revenue is from the domestic market. Chinese companies are looking at outsourcing locally as an option to compete globally
Indian outsourcers are also starting to realize the importance of the growing domestic market. Indian service providers, which used to shun the domestic Indian market three to four years ago in favor of higher revenues from the US and UK, are now looking to diversify their client base.
The Philippines is likewise taking steps to gain more of the offshoring market share from non-English speaking countries. The Board of Investments announced in July 2011 that it would be teaming up with IBM Philippines to conduct research and implement programs to build the multi-lingual talent pool of the country for business process outsourcing
Vives concluded, “Given the continued growth of competition and increasing demand from other countries besides the US and Europe, XMG Global expects a sustained displacement and redistribution of market share not only between India and China but in other emerging outsourcing destinations such as Brazil, Mexico and Malaysia .”

Challenges
Be competitive by Sustaining the cost advantage
Moving up in the value chain
Sustaining the present credentials in the Quality of the deliverables
Availability of competent and quality resources
Time to Train the Resources
Training Cost
35 % of the Graduates only can be productively employed – Economics times

Shift in focus
Focus is shifting to attracting to huge investments, and engaging employees to understand customers customer From becoming employable to deployable

The world has changed
X to Y Gen

Theory X
With Theory X assumptions, management's role is to coerce and control employees.
People have an inherent dislike for work and will avoid it whenever possible.
People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives.
People prefer to be directed, do not want responsibility, and have little or no ambition.
People seek security above all else..

Theory Y
With Theory Y assumptions, management's role is to develop the potential in
employees and help them to release that potential towards common goals.
Work is as natural as play and rest.
People will exercise self-direction if they are committed to the objectives (they are
NOT lazy).
Commitment to objectives is a function of the rewards associated with their achievement.
People learn to accept and seek responsibility.
Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem.
People have potential.

Stake holders
Who are the stake holders ?

Customer-Organization- Employee Customer Organization Employee
Product/ Service
Quality
Cost
Cost of Delivery
Productivity
Top line
Earnings and Learnings
Work Life Balance
Brand

Mfg vs IT cost frame work
Mfg Industry
RM
Plant Machinery
Salaries
Over heads
Profit
IT Industry
Salaries
Building and other Overheads
Profit

Salaries vs Profit Salaries Other OH Profit 55-60 X 18-22 Above numbers are in % Salaries Other OH Profit Say 55 25 20 Y1 55+6=61 25 14 Y2 67 25 8 Y3 73 25 2 Y4 80 25 -5

Cost of Error /Defect

Human Errors
Lack of process knowledge
Lack of tools knowledge
Lack of system knowledge
Lack of domain knowledge
Introduced with other repair
Change coordination
Individual mistake
Communication problem
Is it possible to prevent ?

Why we need a process ?
To be cost competitive
Quality
To do the Right things first ( To minimize the rework/ COPQ)
Consistency
Measure the process and product Quality
To prevent the defect
Optimize COQ
To provide consistent deliverables ( Language/ Culture / Country )
To meet Stake holder needs
To meet Statutory / Regulatory Requirements
Process : The means by which people, procedures, methods, equipment and tools are integrated to produce a desired end result
Industry is growing – X% - YOY
Churn in the human resources

Process flow Software Engineering Process Project Management Process Software Development

Can good technical knowledge on basics alone fetch you the job?
Would knowledge on SW Engineering Processes increase your employability?
Why do we need to understand the Organisation needs?
How would understanding of customer needs benefit me?
Is it required to understand the different Types of Projects ( Development / Maintenance / Support) in IT?
Points to Ponder

Recommendation to Shift FROM TO Any Academic Projects Projects on Emerging Technologies /Business Areas Focus merely on Technical learning Soft Skill Sheer Class-room lectures Application of Technical knowledge Academic Qualification Promotion of Additional Certifications Aligning to curriculum Forums of Industry (i.e. ASQ, SPIN , IEEE, CSI, PMI etc) Faculties to look forward to academicians To Industrialists to bring the needs to lecture hall

Models and Methodologies
ISO Standards
CMMi
PCMM
Six Sigma
Lean
ITIL Frame work
PSP /TSP
Knowledge Management
Learning's from the past experience
Sharing the best practices
Driving factor : The desire to deliver added value and value for money to the customer

In Summary . . .
Understanding the Software Engineering / Project Management Process and it’s Importance is as important as Technical skills.
Understand the Customer Expectation than the Specifications.
See the big picture and meet the industry expectation
Emerging Quality Models / Skills will be a big plus, which will give a competitive edge

Thank you ! Coordinates: Raman Chandra Kumar [email_address] 9840712755

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Need for Process Management in IT and ITES

by ASQ India on Nov 01, 2011

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