Outsourcing Offshore Mgmt

8/6/2019 Outsourcing Offshore Mgmt

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2004 IBM Corporation

Overcoming challenges to ensure success ofoutsourcing/offshore projects

Osmond NgTechnical ConsultantIBM SWG HK


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Reasons for Outsourcing Project Results by Strategic Reason for Outsourcing 1

Cost Savings

Free Up Internal Resources for Other Purposes

Lack of In-House Expertise Need for Special Skills/Services/Equipment

Outsourcing Hot Spots

India

China Malaysia

Singapore

Philippines

1

2003 ITtoolbox Outsourcing Surve


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Critical Criteria for choosing outsourcing partner


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Offshore Development Drivers

Cost Savings

Mergers/acquisitions result in distributed development teams

Supplemental resources needed

Access to talent that is not locally available

24x7 development Time to Market

Variable staffing needs

Application backlog

Response to geopolitical risks

Establish market presence in foreign country

Localize products


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Offshore Development Who Is Doing It?

Enterprise IT organizations in all industry sectors

Product Development organizations

Large companies often direct ownership of offshore development centers

Mid-size companies

Small companies

Systems Integrators and SW Development Outsource Suppliers

Distributed Development is mainstream!


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Outsource/Offshore = Distributed DevelopmentThey face the same problem? Quality

What are we asking the counterpart to do?

What are we going to monitor?

How are we going to know if things are going well?


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Reality of Distributed Development

3 Year Development Cost Comparison

$0

$10

$20$30

$40

$50

$60$70

All onsite Distributed Best Case Distributed - Worst Case

TotalDeve

lopm

entCost

$M

illion

100 FTE Decreased Productivity

Increased Rework Additional Process, Tools, Automation


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Cost Savings Barriers Productivity decreases in on-site / offshore team, due to: Communications issues time lag, cultural

Requirements not well defined up front

Requirements management process does not provide feedback loop, or method for communicating

changing / evolving requirements Requirements well defined, but not well communicated

Organizational issues lack of motivation

Process (handoff, delivery, change management) not well understood time spent trying to figure outwho does what

Additional project management overhead

Mismatched and unsynchronized configuration management processes and systems resulting inclassic configuration management problems work to know what files to work on, what is the latestbuild, why did the build break, etc.

Productivity Decrease of 50% -100% or more is common in initial projects.

Rework increases due to: End product not the right product (requirements mis-match)

End product has high defect density

Project deliverables not well defined

Offshore testing process not aligned with onsite needs

Typical localized project rework is 20%-30%.

Distributed development can bring this to 50%-100% rework in initial projects.


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Lower Development Costs - Effectively manage and control staffdevelopment resources and to take advantage of lower cost resourcesavailable through the use of onsite, offsite and offshore software development.

Increase Staff Productivity - Improve individual and project productivity tomeet the backlog of business requests. Increase current staff capability to takeadvantage of current and emerging technology. Ability to quickly leverage staffacross project portfolios.

Decrease Time to Market - Reduced project delivery time allows clients tobring projects on line faster while incorporating more business critical features.

Improve QualityStandard processes, methods, and tools drive higherquality software which in turn drives business results.

Increase Competitive Advantage - Software is the critical differentiatorfor providing new services to customers and for opening new markets.

IBM Rational Summary Value Propositions


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Distributed Development Project Models

Usually have a combination of on-site and distributeddevelopment resources

Distributed roles and tasks: Business Modeling/Planning

Requirements Definition

Analysis and Design/Architecture

Deployment Implementation

Testing/Integration

Evaluation

At both sites:Project Management

Configuration/Change Management

Software Engineering Process


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Requirements& Use Cases UnitTestsBusinessModel Model Code

Test Cases DefectsTest PlanSystemTests

TestResults

Site A Site B

Site A Both SitesSite A Both Sites

Software Configuration Management

Progress Metrics and Reporting

Common Process and Guidance

Distributed Development Workflow ExampleSite A Both Sites Site B

Site A


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Distributed Development - Common Pitfalls

Multiple Development Sites generate confusion:

Conflicting Processes

Varying Project requirements

Change Management and Version Control

Measuring project progress & quality

Overall Project control


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A Team-Based ApproachAll tools and team members support all development imperatives

Analyst Architect Developer Tester

Rapidlyconstruct,transform,integrate

andgenerate

code

Rapidlyconstruct,transform,integrate

andgenerate

code

Design,create,

andexecute

tests

Design,create,

andexecute

tests

Model,simulate,assemble,

and monitorbusiness

processes

Model,simulate,assemble,

and monitorbusiness

processes

Visuallymodel

applicationsand data

Visuallymodel

applicationsand data

Provision,configure,tune and

troubleshootapplications

Provision,configure,tune and

troubleshootapplications

DeploymentManager

Follow a common process Manage and measure

projects

Manage requirements

Follow a common process Manage and measure

projects

Manage requirements

Manage changeand assets

Manage quality

Manage changeand assets

Manage quality

Project

Manager

SeniorExecutive

Align IT investments with business objectives Analyze and monitor project portfolios Align IT investments with business objectives Analyze and monitor project portfolios


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What is the Rational Team Unifying Platform?

A process

Software development best practices IBM Rational Unified Process

An integrated suite of infrastructure tools:

Requirements management IBM Rational RequisitePro

Change Request Management IBM Rational ClearQuest

Software configuration management IBM Rational ClearCase

Test planning IBM Rational TestManager

Project documentation automation IBM Rational SoDA

A project measurement tool

Project measurement IBM Rational Project ConsoleEliminate Software

Development Chaoswith Collaborative

Software Development


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Solution in a Distributed EnvironmentIBM Process & ToolingIncrease Team Productivity

RUP, ClearQuest, RequisitePro

RUP, ClearCase/ClearQuest/MultiSite

RUP, TestManager

RUP, ClearCase/ClearQuest/MultiSite

RUP, Project Console, ClearQuest

Common processes/automation

Requirements Management

Change Management

Testing

Delivery

Metrics/measurement

Early identification of problems

Continuous improvement

IBM Process & ToolingReduce Rework

RUP, Rose/XDE, RRD

RUP

RUP, ClearCase/ClearQuest MultiSite

RUP, Project Console, ClearQuest

Architecture/modeling

Common artifacts

Change Management Process

Metrics/measurement

Side effect of improved

process and tooling

Reduce ratio of

onsite/offsite staff


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Best Practices

Documented, Visible Software Lifecycle ProcessesDocumented, Visible Software Lifecycle Processes

Secure, Traceable Change Management SystemSecure, Traceable Change Management System

Requirements ManagementRequirements Management

Architecture and ModelingArchitecture and Modeling

Manage and Measure Project Success and QualityManage and Measure Project Success and Quality

Facilitate Communication and CollaborationFacilitate Communication and Collaboration


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Requirements& Use Cases UnitTestsBusinessModel Model Code


TestResults

Site A Site B





Distributed Development Workflow ExampleSite A Both Sites Site B

Site A


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IBM/Rational Supports Geographically Distributed Development







Rational Unified Process: RUP Rational Unified Process: RUP


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Process: A Must-haveIn Distributed Development

Enables clear,

consistent communication Identifies resources requirements

Defines team responsibilitiesand their relationshipwith other team members

Reduces risk

Assists project planningand cost estimation

Promotes rapid feedback


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Collaborative Software ProcessIBM Rational Unified Process

Proven.

Practical.

Flexible.

Searchable, Web-based, covers the entire lifecycle

Direct access from Rational tools extended help menu

RUP is an industry-wide process platformthat provides youwith software

developmentknowledge, guidelines,templates, andexamples for everymember of your team


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Process Delivery Tools: Project Web Site

Graphical

navigation

GraphicalGraphical

navigationnavigation

Index, Search, GettingStarted, Feedback, ..

Index, Search, GettingIndex, Search, Getting

Started, Feedback, ..Started, Feedback, ..

HotlinksHotlinksHotlinks

Defined RolesDefined RolesDefined Roles


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RUP, ClearCase, ClearQuest, MultiSite RUP, ClearCase, ClearQuest, MultiSite


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Analyst

Bug 98

Addpromotioncalculation

Bug179

NewGUI

button

Newplatform

New webdesign

Bug849

Bug527

Bug251

Newcustomer

transactionBug 348

IntegratorDevelopers

Build 3Build 2 Build 1

Managing Change and Complexity: The Problem

Project Manager

Testers

Why did thebuild break?Why did theWhy did thebuild break?build break?Of course I

didnt forgeta file...

Of course IOf course Ididndidnt forgett forget

a file...a file...

Did requirement462 make it into

this release?

Did requirementDid requirement462 make it into462 make it into

this release?this release?

How manyseverity 1 bugs

are left?

How manyHow manyseverity 1 bugsseverity 1 bugs

are left?are left?

Is bug 873 fixed inthis build?

Is bug 873 fixed inIs bug 873 fixed inthis build?this build?


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Change Request ManagementIBM Rational ClearQuest

The Leading

SCM SolutionRanked #1for the Last Five Years*

Capture changerequests

Communicate real-time project status

Control your changemanagement process

Customize RationalClearQuest to meet your

needs

Interfaces Web andnative client


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Easily capture change requests

WindowsWindowsMS AccessMS Access

SQLAnywhereSQLAnywhereIBM DB2 ExpressIBM DB2 ExpressMS SQL ServerMS SQL Server

OracleOracle

Windows UNIX Web

e-mail

UNIXUNIXOracleOracle

OR

UserDatabase

Scalable

UserDatabase

Scalable


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Non-intrusive Project Status Reporting Are all the high severity defects resolved in this build?

What is the state of all iteration 1 enhancements?

Rational ClearQuest

Instant reporting deliversreal-timeproject status

Wizards quickly generatequeries and charts fromWindows and/or WebinterfacesProject

Manager


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Manage Change Requests In A Distributed Environment Multi-site allows distributed teams to work together efficiently

ReplicatesClearQuest databases

Routinely synchronizesthe replicas

Cousin to ClearCase MultiSite

Shared technology leverages ClearCase/MultiSite skills

Can be used with or without ClearCase


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ClearQuest Webinterface


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Manage ChangeIBM Rational ClearCase

Easy to Use Web and native client interfaces

Makes parallel development practical

The Leading

SCM SolutionRanked #1for the Last Four Years*

* International Data Corp, SCM Tools Forecast and Analysis, 2001-2005


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Manage Change Within Your Development EnvironmentSeamless integration in your development environment

IBM Rational ClearCaseManage Change and AssetsManage Change and Assets

Contextsensitive

menus

ContextContextsensitivesensitive

menusmenus

Choice ofRational or

Microsoft CMdialogs

Choice ofChoice ofRational orRational or

Microsoft CMMicrosoft CMdialogsdialogs

Change management withinChange management withinIBM WebSphere Studio andIBM WebSphere Studio and

Microsoft Visual Studio .NETMicrosoft Visual Studio .NET


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Manage Assets In A Distributed Environment

Supports developmentacross geographicallydistributed project teams

Balances thedevelopment load

Facilitates backup ofVOBs

Multisite : Around theWorld or Across the Hall


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ClearCase Web File Browser


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ClearCase Webmerge


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Accelerate Productivity With Parallel DevelopmentIBM Rational ClearCase and ClearQuest

Make parallel development practical

Work simultaneously on multiple releases

Coordinated workflows across the team

Secure, versioned software assets

Help teams collaborate and communicate

Benefit the entire development team

Accelerate DistributedTeam Development

Enables 24x7 development

Provides secure repository

Tracks changes: Who did what, when


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Summary - MultiSite Change Management

SynchronizeBaselineArtifacts

Keeps development activities up and running 24X7

Maintenance work QA work Custom code

Multiple US sites Offshore sites Offshore contractor

Parallel development Disaster recovery Secure-Partitioning capability

North AmericanServer

European/Off-shoreServer

Requirements& Use Cases

UnitTests

BusinessModel

Model Code


TestResults

ClearCase, Team Unifying Platform

Rational Unified Process, Team Unifying Platform

Team Unifying Platform

Business IntegrationModeler, Rose XDE

Modeler

Rose XDE Developer,PurifyPlus, Test

RealTime

Team UnifyingPlatform



ClearQuest




RequisitePro,Rose XDEModeler

Rose XDEModeler,

Rapid Developer

WebSphere Studio,Rose XDE Developer,

Rapid Developer

FunctionalTester,

PerformanceTester


UnitTests

BusinessModel

Model Code


TestResults





Modeler


RealTime




ClearQuest





Rose XDEModeler,

Rapid Developer


Rapid Developer

FunctionalTester,

PerformanceTester


UnitTests

BusinessModel

Model Code


TestResults





Modeler


RealTime




ClearQuest





Rose XDEModeler,

Rapid Developer


Rapid Developer

FunctionalTester,

PerformanceTester

IBM S f G


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RUP, Requisite Pro, ClearQuest RUP, Requisite Pro, ClearQuest

IBM S ft G


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Requirements ManagementIBM Rational RequisitePro

Understand and

Communicatethe Impact of aRequirement Change

IBM Software Group


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Managing Requirements with IBM Rational RequisiteProKeep your team on track

3 interfaces - work the way you want

Document-centric or database-centric - your choice

Microsoft WordMicrosoft WordDatabaseDatabase

WebWeb

IBM Software Group


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IBM Rational RequisiteProIntuitively Managing Requirements

Microsoft Word

A familiar way to work

Contextual informationExtensive formatting

Requirements Database

Security

OrganizationReporting and metrics

The Power of a Databaseand the Freedom of Word

IBM Software Group


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Communicating Changes and Their Impact

With RationalRequisitePro's

suspect links, myteam members and Ican immediately see

changes that aremade

Jason Oliver,Kodak

Suspect links

Email notificationof changes

IBM Software Group


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Architecture, Modeling and TestingArchitecture, Modeling and Testing



RUP, Rose/XDE, Test Manager RUP, Rose/XDE, Test Manager

IBM Software Group


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Why Invest in Architecture and Design?

To work at a higher level of abstraction

To communicate with stakeholders

Clients, users, implementers, testers, documenters

To detect errors and omissions in designs before committing full resources to fullimplementation

Through (formal) analysis and experimentation

Investigate and compare alternative solutions Minimize engineering risk

To drive implementation

We can do this with models

IBM Software Group


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UML Diagrams

1. Use Case Communicates to the customer what functionality is in theproject scope, and who the system actors are.

2. Activity Shows the workflow in a business process.

3. Collaboration Shows the objects participating in a scenario of a use case, how theobjects are related, and the messages sent between the objects.

4. Sequence Shows the objects participating in a scenario of a use case, howthe objects are related, and the messages sent between the

objects. Similar to collaboration diagram but in a different format.

5. Class Diagrams the classes or subset of classes in a system along withtheir relationships, attributes and operations.

6. Statechart Shows the dynamic behavior of an object, including the states that itmay exist in.

7. Component Shows the physical components that make up a system.

8. Deployment Addresses how the system will be deployed.

IBM Software Group


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Model Applications and dataRational Software Architect/ Rose XDE Developer

Improve understanding and communication Improve quality

Accelerate change analysis

How? UML diagrams composition

Multiple diagrams support and validation

Identify/Apply Patterns

Reusable Assets Specification (patterns, templates,frameworks, components, models)

for Reuse

Team sharing

UML diagrams composition

Multiple diagrams support and validation

Identify/Apply Patterns

Reusable Assets Specification (patterns, templates,frameworks, components, models)

for Reuse

Team sharing

Benefits

Architectural problems discovered too late

Systems are hard to change if you need to look at code

Slow progress without a common understanding

Architectural problems discovered too late

Systems are hard to change if you need to look at code

Slow progress without a common understanding

What problems does it solve?

IBM Software Group


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Modeling For Business, Application And Data Modelers One notation: UML

One tool: RSA/Rose XDE

Web Publish the Models

Application Modeling Data Modeling

BusinessModeling

IBM Software Group


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What is Automated Test Management?

Using automation tools toaccelerate the process of test

planning, test creation, testexecution and test resultsanalysis Plan

Plan

CreateCreate

ExecuteExecute

AnalyzeAnalyze

IBM Software Group


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Manage TestIBM Rational TestManager

Understand andCommunicateTest

IBM Software Group


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Manage Test Cases and Trace to Requirements

IBM Rational TestManager

Test Caseproperties

Test SuiteExecution Log

IBM Software Group


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Architecture, Modeling and TestingArchitecture, Modeling and Testing



RUP, ProjectConsole, SoDA, ClearCase, ClearQuest RUP, ProjectConsole, SoDA, ClearCase, ClearQuest

IBM Software Group


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Accurate Project StatusIBM Rational ProjectConsole

Customizable reports on project information

Visual project status and measurement information

Avoid Wasting Time

Looking for andWorking FromOutdated Information

IBM Software Group


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Why do we measure?

Communicate effectively

Identify and correct problems early

Make informed trade-offs

Track specific project objectives

Manage risks

Defend and justify decisions

IBM Software Group


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IBM Rational Project Console - Easily assess status and projectmetrics through indicators and charts


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Automated Project DocumentationIBM Rational SoDA

Automates creation and maintenance of project documentation

Incremental report regeneration

Always updates from the source

Maintain project

documentation asproject artifactsevolve

IBM Software Group


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Project Documentation with IBM RationalSoDA Project Data

Project Documentation

AnalysisAnalysisDocumentsDocuments

DesignDesignDocumentsDocuments

TestTestDocumentsDocuments

StatusStatusReportsReports

IntegratedIntegratedDocumentsDocuments

Rational SoDARational SoDA

RequirementsRequirementsAnalysisAnalysis

DesignDesign TestTest CMCM DefectsDefects

IBM Software Group


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IBM Rational Software Development Platform

IBM Software Group


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Requirements

& Use Cases

Unit

Tests

Business

ModelModel Code


TestResults

Site A Site B





Distributed Development Workflow Example

Site A Both Sites Site B

Site A

IBM Software Group


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Requirements

& Use Cases

Unit

Tests

Business

ModelModel Code


TestResults





Modeler


RealTime

TestManager TestManagerTestManager ClearQuest




IBM Rational Software Development PlatformRequisitePro,

Rose XDEModeler

Rose XDEModeler,

Rapid DeveloperRose XDE Developer,

RAD, RSA

Functional Tester,Performance

Tester

IBM Software Group


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Lower Development Costs - Effectively manage and control staffdevelopment resources and to take advantage of lower cost resourcesavailable through the use of onsite, offsite and offshore software development.

Increase Staff Productivity - Improve individual and project productivity tomeet the backlog of business requests. Increase current staff capability to takeadvantage of current and emerging technology. Ability to quickly leverage staffacross project portfolios.

Decrease Time to Market - Reduced project delivery time allows clients tobring projects on line faster while incorporating more business critical features.

Improve QualityStandard processes, methods, and tools drive higher

quality software which in turn drives business results.

Increase Competitive Advantage - Software is the critical differentiatorfor providing new services to customers and for opening new markets.

IBM Rational Summary Value Propositions

IBM Software Group


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Reduced development lifecycle by 25%Covarity

1200% increase in developer productivity

90% reduction in bug backlogCredence SystemsCorporation

96% productivity increaseInformation Builders, Inc.

1440% ROI; 9.5M Net Quantifiable BenefitChoice Hotels International

$409K Net Quantifiable Benefit; 222% ROILockheed Martin Canada

80% fewer bugs; 100% productivity increaseEricsson

300% productivity increaseMerrill Lynch

The IBM Software Development Platform: Customer Success

IBM Software Group

Corporate Drives Life Cycle Geographically


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Corporate Drives Life Cycle Geographically

Distributed Development: Thomson FinancialStandardized on Rational RequitiePro, Rational Rose/XDE, RationalClearCase MultiSite, Rational ClearQuest, Rational Services

Benefits

Pilot project costs reduced by 50% - from $400,000 to$200,000

Stable infrastructure established for improved softwarereuse and efficient distributed development

Quality and stability is increasing

The use of UML enabled us to document and

collaborate more effectively. And,it assisted in

knowledge transfer --helping our teams in the

U.S.communicate clearly with the development teamoverseas,

Rajiv GuptaVice President of Technology

Thomson Financial Corporate Group

IBM Software Group

V i f th C t TTI T l


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Voice of the Customer: TTI TelecomReducing Cost and Accelerating Development withIBM Rational ClearCase MultiSite

Benefits

Improved efficiencies in build and release management

Accelerated global development in a 24X7 environment

Improved time to market by 50%

Estimated savings of $2 million per year

IBM Rational ClearCase helps us optimize two of our mostimportant resources time and employee productivity.

Arieh ShalemDirector, Corporate Quality Management

IBM Software Group


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Web Based

SDP Demo

IBM Software Group


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IBM Software Group


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