04 Kalyan Rao Konda Applabs

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    Generating BusinessValue through TCoE

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    AppLabs Confidential 1

    Testing Organization ModelsEvolutionary approach to building a TCOE is pragmatic. Slowly growing a Test COE yieldsopportunities to introduce mechanisms to overcome the pains of centralization.

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    AppLabs Confidential 2

    TCoE services summary

    Characteristics:

    Common approach Ability to support frequent releases Common methodology and deliverables Manage key set of few metrics Centralisation of tasks / skills / functions

    Benefits:

    Consistent quality High performance Faster time to market Flexibility to support business needs Lower costs

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    AppLabs Confidential 3

    Introduction TCOE

    TCOE

    Tools & AssetsProcess &TestMethodology

    People &Organisation

    Leverage a dedicated group of skilled testresources

    Utilise offshore resources

    Ensures appropriate skills are available

    People & Organisation

    Standardised approach and deliverableswith greater delivery consistency

    Rapid adoption of best practice

    Clear process accountability / responsibility

    Disciplined test management

    Process & Test Methodology

    Effective leveraging of tools and automation

    Assets made available to projects

    Maintenance of multiple environments

    Tools & Assets

    Lower cost Consistent quality

    Flexibility to supportbusiness needs

    Control

    Benefits

    Higher quality

    High performance

    Speed to market

    Benefits

    Lower cost

    Consistent quality

    Speed

    BenefitsCharacteristics:

    Common Approach Ability to support frequent releases

    Common methodology and deliverables

    Management to key set of Few metrics

    Centralisation of key testing tasks / skills /functions

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    AppLabs Confidential 4

    AppLabs SCORE methodology

    AppLabs proven proprietary methodology Maps processes and metrics to organization business goals Focuses on building organization wide test platform Core + Flexi resource model Cost goes down exponentially with each addition of product into TCoE

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    AppLabs Confidential 6

    TCoE Framework

    AppLabs Framework for Assessment

    Clients Vision & Goals

    AppLabs SCOREMethodology

    Test Process Standardization Index Process Artifacts Creation / Modification

    Plan Test Metrics & Measurement Roadmap Test Process Deployment Plan

    TCoE Organization Model Resource Skill Matrix Capacity Planning and Utilization Report Proposed Knowledge Management

    Framework

    Infrastructure Inventory Report

    Test Environments and Utilization Report Test Infrastructure Optimization Plan

    Test Tool Inventory and Utilization Report Recommended Test Frameworks ROI Analysis of Tools Implemented Proposed Tool Optimization Plan

    Understand Information gathered 360 degree Analysis Actionable Recommendations Establish baseline for Measuring

    Improvements

    Process Review

    Infrastructure Review

    Tools Review

    Test Teams Review

    Understand Analyze Recommend

    Test Maturity Rating Test Spend Analysis Report

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    AppLabs Confidential 7

    Centralization of Testing Services

    Business / Product / Technology based frameworks

    Resource management Types, skills and knowledge management

    Process methodologiesReviews Review expertise Review techniques Review process Review database

    Test management Test case Defect Test data Roles & Responsibilities

    Risk management Plan Budget Reviews Prioritization

    Measurement & Reporting Metrics framework MIS Escalation SLA

    Testing infrastructure Inventory, scheduling and operational processes

    Test engineering tools

    Core testing

    Functional andregression

    Test strategy &approach

    Methodology Templates

    authoring & review Test suite selection

    Certification(Compatibility)

    Compatibilitymatrix

    Acceptancecriteria

    Performance

    Test types Load, stress,etc

    Tools Capacity

    planning

    Security

    Testapproach

    Analysis Tools Vulnerability

    assessment Scorecard

    Consulting

    Test processreview

    Baseline Audit Process

    Improvement

    Tools andAutomation

    Test strategy Approach &

    methodology Framework Tool feasibility Coverage

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    AppLabs Confidential 10

    Business value of testing AppLabs has successfully demonstrated Return on Investment (ROI) for several customers in categories mentioned below. Metrics mentioned under each category are just a sample to showcase cost advantage, qualityimprovement and time-to-market

    Test infrastructure Reduction in test tool licensing

    costs Hardware infrastructure utilization Reduction in hardware servers Test data reusability

    Test processes

    Test processes standardization Process compliance Test maturity level

    Test Engineering Defects in production Defect containment Reduction in test cycle duration Test case authoring productivity Test case execution productivity Test coverage

    Effort to find a defect Test Automation

    Test script authoring productivity Automation ROI

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    Leading InsuranceProvider in US

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    AppLabs Confidential 13

    ROI / Efficiency GainsTest Authoring - Cost SavingsKey Initiatives:

    Used All-Pairs techniques Participated in business requirements/review

    meetings Reverse traceability to avoid redundant test

    cases 2-Level formal review before Sign-off from

    Business team (reduction in rework)

    Test Execution - Cost SavesKey Initiatives::

    Mapping defects to test objectives

    Participation of test teams in early SDLC

    cycles to gain application knowledge

    Automating 40% of regression suite

    Early Defect detection AFT/SIT/UAT

    Releases

    Releases

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    AppLabs Confidential 14

    Post Production Root Cause Distribution

    Analyzed the root causes for all the warranties and built awarenessacross all the groups to drive reduction in warranties

    Root Cause for each production defect has been applied as

    lessons learnt in the respective teams

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    AppLabs Confidential 15

    Defect detection percentage has decreased for Functional, Regression and Warranty phase

    Early defect detection ensured adherence to release schedules

    Early Defect Detection

    Integration System Regression Warranty

    2007 2008 2009

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    AppLabs Confidential 16

    Cost Saving$1.34m

    50%

    Cost Saving$1.99m

    75%Baseline

    Onsite/Offshore ratio Initial onsite: offshore = 80% Reduced onsite: offshore to 38%

    Currently it is 15%

    Key Initiatives:

    Constant review and override of

    onsite/offshore ratio

    Maximized offshore capability using

    effective governance

    Onsite/Offshore rotation model

    ROI / Efficiency Gains - Summary

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    AppLabs Confidential 17

    Executive dashboard

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    AppLabs Confidential 18

    Oct 07 Agent dashboard (functional, automation, regression)Aug 08 Agent commissioning system (functional)

    Sep 08 Sales mgmt (functional, regression, maintenance, compatibility, integration)

    Sep 08 Contact management system (functional, regression, automation)

    Nov 08 Policy processing system (automation QTP/Certify )

    Dec 08 Helpdesk application (functional, regression, automation)

    Jan 09 Fast Quote 2 (rate validation)

    Apr 09 Fast Quote 3 (rate validation)

    Mar 09 Service management system (vulnerabil ity)

    Phase I Discovery(Oct 07 Mar 08)

    Phase II - Steady State & Transformation (Apr 08 Mar 10)

    Phase III - Transformation(Apr10 )

    Acquired knowledge onbusiness processes

    Understood technology andarchitecture of applications

    Reviewed current testingprocesses

    Devised testing strategies Defined qualitative and

    quantitative goals Institutionalize Insurance

    certification program

    Common practice and methodology for testing Revamp testing and implementation life cycle for current

    applications Enforce discipline in SDLC by adherence to defined milestones Increase the rigor in usage of automation tools Focused groups for various test events Rollout and implementation of QA practices for other applications Rollout of QA practices and delivery of QA services for other

    Lines of Business and other divisions Develop and roll out infrastructure optimization and non

    functional testing services

    Continuous improvement Annual review of core team Quarterly review of flexi team

    Multi LinesPersonal Lines

    Dedicated Team size 240 (15 onsite +225 offshore)

    Dec 09 FAB Regression

    Aug 09 Claims (functional, automation, performance)

    Journey

    Feb 09 Service management system (integration)

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    Largest e-LearningPlayer

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    AppLabs Confidential 20

    Largest e-Learning Player Set up(Nov03 -Oct04)

    Transform(Nov04 - Dec06)

    Deliver (Jan07 - onwards)

    Benchmarking Test scope Testing effort Test approach

    Standardization of QA processes

    Basic reporting functions for Defect life-cycle Resolution management Test case authoring / execution

    Established basic communication model

    Methodology

    Adopted agile practices for QA

    Quarterly audits and reviews

    Introduced quality metrics

    Service delivery performance

    Monitored effort and schedule Resource utilization

    Scope change Monitored defect detection and defect removal efficiency

    Built local test lab Isolation server and QA environment

    Trusted partner for QA

    Manage the entire quality function of

    customer with minimal supervision

    Integrated AppLabs into client

    business process and release

    management

    Nov 2003 Manual (Functional, Compatibility, Multi Lingual, Integration)

    Nov 2004 Test Automation (Functional, Integration)

    Oct 2005 Performance

    Dec 2006 Certification

    Jan 2008 Engineering (L2 & L3)

    Team size 150Oct 2009 Professional Services

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    AppLabs Confidential 21

    Defect Detection Cost Savings Effort to find defect reduced by 4 times

    for core release

    Effort to find defect reduced by 30% for

    maintenance releases

    Cost savings of $2.58 Million for core

    releases

    Cost savings of $191 K for maintenance

    releases

    Cost to find a defect

    Drivers

    Enhanced product knowledge through AppLabs Knowledge Management Framework

    Better test coverage by using Bi-directional requirements traceability matrix

    Formalized Statistical analysis and impact analysis to find vulnerable test areas

    Defect Taxonomies used to drive testing effort

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    AppLabs Confidential 22

    Test Engineering Efficiencies

    Better product quality & decrease in test cyclehours due to early defect detection

    Volume of defects found during sprints is50% higher

    Reduction in overall testing efforts by 20%(appr. 10,000 hrs)

    Effort variance reduced YOY due to better TestPlanning

    Defects acceptance ratio improved by 7%because of defect triage and SME knowledge

    Cost saving due to test engineering efficiencies is$152 K

    Defects in Sprints

    Effort Variance

    D e f e c t s

    Defects Acceptance Ratio

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