No more exhaustive and emotional discussions on price and deliverables. Predictable prices for projects and changes. No escalating maintenance costs. This can only be done by specifying exactly what you want and outsource it to the right service providers that have the required platform already in place.

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04 Oct 2022 | ITCES22, Haarlem
The COSMIC battle between David and Goliath
Paul Hussein
ESMA65-10-466

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Why listen to me
04 Oct 2022 | ITCES22, Haarlem
•No more exhausting and emotive
discussions on price and deliverables
•I want predictable prices for my
projects and changes
•I don’t want escalating maintenance
costs

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My Context in the European Institutions
04 Oct 2022 | ITCES22, Haarlem
EU Institutions procure via open
calls. Anyone can answer, from
companies with 50 employees to
those with thousands
ESMA is an EU institution with
@400 staff
* https://ec.europa.eu/info/publications/financial-regulation_en

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No Wiggle Room
04 Oct 2022 | ITCES22, Haarlem
Fixed cost – our budget is set 3 years in advance
Fixed time – mandated by EU Regulation
Fixed Quality – mandated by EU Regulation

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How?
04 Oct 2022 | ITCES22, Haarlem
What that means in this context is, to work with an organisation we have to do an RFO/RFP which
ends with a contract for contracts with all terms and conditions defined up front for at
least 4 years
* https://ec.europa.eu/info/publications/financial-regulation_en

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The Holy Grail
04 Oct 2022 | ITCES22, Haarlem
So, how can we fix the price for any development or maintenance for the
duration of the agreement, whilst maintaining the same process and the
same deliverables and quality?

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Function Point Analysis
04 Oct 2022 | ITCES22, Haarlem
Function Point Analysis (FPA) is a method used to size an application in terms of
Function Points.
We can specify a system in Business Terms map the effort to build those
business functions into points, known as Function Points (FPs)
Business
Requirements
Functional
Specification
Software
Architecture
Function Point
Analysis
Function
Point Count
Allan Albrecht of IBM in 1979

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Magic bit
04 Oct 2022 | ITCES22, Haarlem
Productivity * Hourly Rate * Function Point Count
= Price to deliver system
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Productivity = hours to build one function point worth of functionality
Rate & productivity varies with each vendor
FP count stays the same if its counted by an ISO certified counter

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Generic Contract Agreement
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Productivity
(Hrs Per FP)
Hourly Rate
(Euros per HR)
Development 0.5 70
Maintenance 0.4 50
Clearly in the statement of work what is required for
Development and Maintenance for any Generic System

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Example 1 – Build new system
04 Oct 2022 | ITCES22, Haarlem
Functional Specification for new system = 2000 Function Points
Price = 0.5 * 70 * 2000 = 70,000 Euros
Productivity
(Hrs Per FP)
Hourly Rate
(Euros per HR)
Development 0.5 70
Maintenance 0.4 50

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Example 2 – Modify existing
04 Oct 2022 | ITCES22, Haarlem
Functional Specification for existing system = 1500 Function Points
New functions added = 300 Function Points
Price = 0.5 * 70 * 300 = 10,500 Euros
Productivity
(Hrs Per FP)
Hourly Rate
(Euros per HR)
Development 0.5 70
Maintenance 0.4 50

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Example 3 – Maintain System
04 Oct 2022 | ITCES22, Haarlem
Functional Specification for system = 2300 Function Points
Price = 0.4 * 50 * 2300 = 46,000 Euros
Productivity
(Hrs Per FP)
Hourly Rate
(Euros per HR)
Development 0.5 70
Maintenance 0.4 50

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Which Flavour of ISO Function Point Analysis
04 Oct 2022 | ITCES22, Haarlem
FISMA IFPUG COSMIC NESMA

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IFPUG Flavour
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We have been using IFPUG now for 7 years
Global Development & Maintenance of IT Systems Contract
Why IFPUG:
• ISO Standard
• Certification and Training available
• IFPUG recommended by Gartner

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COSMIC Flavour
04 Oct 2022 | ITCES22, Haarlem
We have been using COSMIC now for 2 years
Development & Maintenance of a Big Data Platform (with implementation
of any Data Integration and any Data Analytics
Why COSMIC
• ISO Standard
• Certification and Training available
• Recommended by Gartner for Data Warehouse and Cloud Data

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Extra Dimensions
04 Oct 2022 | ITCES22, Haarlem
Complexity
 high
 medium
 low
Project Size (FPs)
 small 0-500
 medium 500-2000
 large 2000+
Productivity
Category
7
Productivity
Category
8
Productivity
Category
9
Productivity
Category
4
Productivity
Category
5
Productivity
Category
6
Productivity
Category
1
Productivity
Category
2
Productivity
Category
3
Complexity
Functional project size
Small Medium Large
Medium
Low
High

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IFPUG – General Maintenance & Development
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COSMIC – Big Data
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Questions
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Issues
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• Vendor management!
• Vendor management!
• Vendor management!