®

IBM Software Group

Overcoming challenges to ensure success of

outsourcing/offshore projects

Osmond Ng
Technical Consultant
IBM SWG HK

© 2004 IBM Corporation

 IBM Software Group

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 Survey

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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 Development

They 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
T o ta l D e v e lo p m e n t C o s t

$70
$60
$50
$ M illio n

$40
$30
$20
$10
$0
All onsite Distributed Best Case Distributed - Worst Case

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 out
who does what
Additional project management overhead
Mismatched and unsynchronized configuration management processes and systems – resulting in
classic configuration management problems – work to know what files to work on, what is the latest
build, 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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IBM Rational Summary Value Propositions

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

Increase Staff Productivity - Improve individual and project productivity to

meet the backlog of business requests. Increase current staff capability to take
advantage of current and emerging technology. Ability to quickly leverage staff
across project portfolios.

Decrease Time to Market - Reduced project delivery time allows clients to

bring projects on line faster while incorporating more business critical features.

Improve Quality – Standard processes, methods, and tools drive higher

quality software which in turn drives business results.

Increase Competitive Advantage - Software is the critical differentiator

for providing new services to customers and for opening new markets.

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Distributed Development Project Models

Usually have a combination of on-site and distributed
development resources
Distributed roles and tasks:
Business Modeling/Planning
Requirements Definition
Analysis and Design/Architecture Software Engineering Process
Deployment
Implementation
Testing/Integration
Evaluation
At both sites:
Project Management
Configuration/Change Management

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Distributed Development Workflow Example

Site A Site A Both Sites Site B Site B

Business Requirements Unit

Model Code
Model & Use Cases Tests

Site A Site A Site A Both Sites Both Sites

System Test
Test Plan Test Cases Defects
Tests Results

Common Process and Guidance

Progress Metrics and Reporting

Software Configuration Management

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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 Approach
All tools and team members support all development imperatives

Analyst Architect Developer Tester Deployment

Manager
Model, Rapidly
simulate, construct, Design, Provision,
assemble, Visually transform, create, configure,
model integrate and tune and
and monitor applications troubleshoot
business and data and execute
generate tests applications
processes
code

Follow a common process

Manage and measure Manage change
Project projects and assets
Manager Manage requirements Manage quality

Align IT investments with business objectives

Senior Analyze and monitor project portfolios
Executive
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What is the Rational Team Unifying Platform?

A process
Software development best practices
An integrated suite of infrastructure tools:
Requirements management
Change Request Management
Software configuration management
Test planning
Project documentation automation
A project measurement tool
Project measurement
IBM® Rational® Unified Process®
IBM® Rational® RequisitePro®
IBM® Rational® ClearQuest®
IBM® Rational® ClearCase®
IBM® Rational® TestManager®
IBM® Rational® SoDA®
IBM® Rational® Project Console®
Eliminate Software
Development Chaos
with Collaborative
Software Development
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Solution in a Distributed Environment
Increase Team Productivity
Common processes/automation
Requirements Management
Change Management
Testing
Delivery
Metrics/measurement
Early identification of problems
Continuous improvement
Reduce Rework
Architecture/modeling
Common artifacts
Change Management Process
Metrics/measurement
Reduce ratio of
onsite/offsite staff
IBM Process & Tooling
RUP, ClearQuest, RequisitePro
RUP, ClearCase/ClearQuest/MultiSite
RUP, TestManager
RUP, ClearCase/ClearQuest/MultiSite
RUP, Project Console, ClearQuest
IBM Process & Tooling
RUP, Rose/XDE, RRD
RUP
RUP, ClearCase/ClearQuest MultiSite
RUP, Project Console, ClearQuest
Side effect of improved
process and tooling
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Best Practices
Documented, Visible Software Lifecycle Processes

Secure, Traceable Change Management System

Requirements Management

Architecture and Modeling

Manage and Measure Project Success and Quality

Facilitate Communication and Collaboration

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Distributed Development Workflow Example

Site A Site A Both Sites Site B Site B

Business Requirements Unit

Model Code
Model & Use Cases Tests

Site A Site A Site A Both Sites Both Sites

System Test
Test Plan Test Cases Defects
Tests Results

Common Process and Guidance

Progress Metrics and Reporting

Software Configuration Management

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IBM/Rational Supports Geographically Distributed Development

Documented, Visible Software Lifecycle Processes

Rational Unified Process: RUP

Secure, Traceable Change Management System

Requirements Management

Architecture and Modeling

Manage and Measure Project Success and Quality

Facilitate Communication and Collaboration

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Process: A “Must-have”
In Distributed Development
Enables clear,
consistent communication
Identifies resources requirements
Defines team responsibilities
and their relationship
with other team members
Reduces risk
Assists project planning
and cost estimation
Promotes rapid feedback

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Collaborative Software Process

IBM Rational Unified Process
Searchable, Web-based, covers the entire lifecycle
Direct access from Rational tools extended help menu

RUP® is an industry-
wide process platform
that provides you
with software
development
knowledge, guidelines,
templates, and
examples for every
member of your team

Proven.
Practical.
Flexible.
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Process Delivery Tools: Project Web Site

Index,
Index, Search,
Search, Getting
Getting
Started,
Started, Feedback,
Feedback, ....
Hotlinks
Hotlinks

Graphical
Graphical
navigation
navigation
Defined
Defined Roles
Roles

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IBM/Rational Supports Geographically Distributed Development

Documented, Visible Software Lifecycle Processes

Secure, Traceable Change Management System

RUP, ClearCase, ClearQuest, MultiSite

Requirements Management

Architecture and Modeling

Manage and Measure Project Success and Quality

Facilitate Communication and Collaboration

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Managing Change and Complexity: The Problem

Did
Did requirement
requirement Add
How
How many
many
462
462 make
make itit into
into promotion Bug severity
severity 11 bugs
bugs
this
this release?
release? Bugcalculation 849 are
are left?
left?
New
New 527 platform New
GUI Bug 98 New web customer
button design transaction
Bug Bug Bug 348
179 251
Project Manager
Analyst
Why
Why did
did the
the Is
Is bug
bug 873
873 fixed
fixed in
in
Of
Of course
course II build
build break?
break? this
didn ’t forget this build?
build?
didn’t forget
aa file...
file...

Build 3
Build 2 Build 1
Testers
Developers Integrator
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Change Request Management

IBM Rational ClearQuest
Capture change
requests

Communicate real-
time project status

Control your change

management process

Customize Rational
ClearQuest to meet your
needs

Interfaces Web and

native client

The Leading
SCM Solution
Ranked #1
for the Last Five Years*
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Easily capture change requests

Windows UNIX Web

e-mail

Windows User
MS Access Database
SQLAnywhere OR UNIX
IBM DB2 Express Oracle Scalable
MS SQL Server
Oracle

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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 delivers
real-time project status
Wizards quickly generate
queries and charts from
Windows and/or Web
Project interfaces
Manager
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Manage Change Requests In A Distributed Environment

Multi-site allows distributed teams to work together efficiently
Replicates ClearQuest databases
Routinely synchronizes the 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 Change
IBM Rational ClearCase

Easy to Use Web and native client interfaces

Makes parallel development practical

The Leading
SCM Solution
Ranked #1
* International Data Corp, SCM Tools Forecast and Analysis, 2001-2005
for the Last Four Years*
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Manage Change Within Your Development Environment

Seamless integration in your development environment

Context
Context Choice
Choice of
of
sensitive
sensitive Rational
Rational or
or
menus
menus Microsoft CM
Microsoft CM
dialogs
dialogs

Change management within

IBM WebSphere Studio and
Manage
Manage Change
Change and
and Assets
Assets Microsoft Visual Studio .NET
IBM Rational ClearCase
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Manage Assets In A Distributed Environment

Multisite : Around the
World or Across the Hall

Supports development
across geographically
distributed project teams
Balances the
development load
Facilitates backup of
VOBs

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ClearCase Web File Browser

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ClearCase Webmerge

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Accelerate Productivity With Parallel Development

IBM 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

Enables 24x7 development

Provides secure repository
Tracks changes: Who did what, when

Accelerate Distributed
Team Development
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Summary - MultiSite Change Management

North American European/Off-shore

Server Server
Business Integration RequisitePro, Rose XDE WebSphere Studio, Rose XDE Developer, Business Integration RequisitePro, Rose XDE WebSphere Studio, Rose XDE Developer,
Modeler, Rose XDE Rose XDE Modeler, Rose XDE Developer, PurifyPlus, Test Modeler, Rose XDE Rose XDE Modeler, Rose XDE Developer, PurifyPlus, Test
Modeler Modeler Rapid Developer Rapid Developer RealTime Modeler Modeler Rapid Developer Rapid Developer RealTime

Business Requirements Unit Business Requirements Unit

Model Code Model Code
Model & Use Cases Tests Model & Use Cases Tests

Functional Functional
Tester, Tester,
Team Unifying Team Unifying Performance Team Unifying ClearQuest Team Unifying Team Unifying Performance Team Unifying ClearQuest
Platform Platform Tester Platform Platform Platform Tester Platform
System Test System Test
Test Plan Test Cases Defects Test Plan Test Cases Defects
Tests Results Tests Results

Baseline Common Process and Guidance – Rational Unified Process, Team Unifying Platform

Progress Metrics and Reporting – Team Unifying Platform Synchronize Common Process and Guidance – Rational Unified Process, Team Unifying Platform

Progress Metrics and Reporting – Team Unifying Platform

Artifacts
Software Configuration Management – ClearCase, Team Unifying Platform Software Configuration Management – ClearCase, Team Unifying Platform

Business Integration
Modeler, Rose XDE
Modeler
RequisitePro,
Rose XDE
Modeler
Rose XDE
Modeler,
WebSphere Studio, Rose XDE Developer,
Rose XDE Developer, PurifyPlus, Test
Keeps development activities up and running – 24X7
Rapid Developer Rapid Developer RealTime

Business Requirements Unit

Model Code
Model & Use Cases Tests

Team Unifying Team Unifying

Platform Platform
Functional
Tester,
Performance Team Unifying
Tester Platform
ClearQuest Maintenance work Multiple US sites
QA work Offshore sites
System Test
Test Plan Test Cases Defects
Tests Results

Common Process and Guidance – Rational Unified Process, Team Unifying Platform

Custom code Offshore contractor

Progress Metrics and Reporting – Team Unifying Platform

Software Configuration Management – ClearCase, Team Unifying Platform

Parallel development
Disaster recovery
“Secure-Partitioning” capability

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IBM/Rational Supports Geographically Distributed Development

Documented, Visible Software Lifecycle Processes

Secure, Traceable Change Management System

Requirements Management
RUP, Requisite Pro, ClearQuest

Architecture and Modeling

Manage and Measure Project Success and Quality

Facilitate Communication and Collaboration

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Requirements Management
IBM Rational RequisitePro

Understand and
Communicate
the Impact of a
Requirement Change
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Managing Requirements with IBM Rational RequisitePro

Keep your team on track

Microsoft Word
Database

3 interfaces - work the way you want Web

Document-centric or database-centric - your choice

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IBM Rational RequisitePro

Intuitively Managing Requirements

Microsoft Word Requirements Database

A familiar way to work Security
Contextual information Organization
Extensive formatting Reporting and metrics
The Power of a Database
and the Freedom of Word
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Communicating Changes and Their Impact

Email notification
of changes

“With Rational
RequisitePro's
suspect links, my
team members and I
can immediately see
changes that are
made…”
Jason Oliver,
Kodak
Suspect links

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IBM/Rational Supports Geographically Distributed Development

Documented, Visible Software Lifecycle Processes

Secure, Traceable Change Management System

Requirements Management

Architecture, Modeling and Testing

RUP, Rose/XDE, Test Manager

Manage and Measure Project Success and Quality

Facilitate Communication and Collaboration

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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 full
implementation
Through (formal) analysis and experimentation
Investigate and compare alternative solutions
Minimize engineering risk

To drive implementation

We can do this with models

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UML Diagrams
1. Use Case Communicates to the customer what functionality is in the
project 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 the
objects are related, and the messages sent between the objects.
4. Sequence Shows the objects participating in a scenario of a use case, how
the 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 with

their relationships, attributes and operations.

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

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

8. Deployment Addresses how the system will be deployed.

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Model Applications and data

Rational Software Architect/ Rose XDE Developer
What problems does it solve?
Architectural
Architectural problems
problems discovered
discovered too
too late
late
Systems
Systems are
are hard
hard to
to change
change ifif you
you need
need to
to look
look at
at code
code
Slow
Slow progress
progress without
without aa common
common understanding
understanding
How?
UML
UML diagrams
diagrams composition
composition
Multiple
Multiple diagrams
diagrams support
support and
and validation
validation
Identify/Apply
Identify/Apply Patterns
Patterns
Reusable
Reusable Assets
Assets Specification
Specification (patterns,
(patterns, templates,
templates,
frameworks,
frameworks, components,
components, models)
models)
for
for Reuse
Reuse
Team
Team sharing
sharing

Benefits
Improve understanding and communication
Improve quality
Accelerate change analysis

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Modeling For Business, Application And Data Modelers

One notation: UML

One tool: RSA/Rose XDE

Business
Web Publish the Models Modeling

Application Modeling Data Modeling

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What is Automated Test Management?

Using automation tools to

accelerate the process of test
planning, test creation, test
execution and test results
Plan
Plan
analysis
Create
Create

Analyze
Analyze

Execute
Execute

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Manage Test
IBM Rational TestManager

Understand and
Communicate
Test
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Manage Test Cases and Trace to Requirements

Test Case
properties

Test Suite
Execution Log

IBM Rational TestManager

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IBM/Rational Supports Geographically Distributed Development

Documented, Visible Software Lifecycle Processes

Secure, Traceable Change Management System

Requirements Management

Architecture, Modeling and Testing

Manage and Measure Project Success and Quality

RUP, ProjectConsole, SoDA, ClearCase, ClearQuest

Facilitate Communication and Collaboration

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Accurate Project Status

IBM Rational ProjectConsole

Customizable reports on project information

Visual project status and measurement information

Avoid Wasting Time

Looking for and
Working From
Outdated Information
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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

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IBM Rational Project Console - Easily assess status and project

metrics through indicators and charts

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Communicate Real-time Project Status

Project metrics for managers
Resource allocation
“Are change requests distributed evenly across the team?”
“Who is available to take on a mission-critical bug fix?”
Project status
“How many Priority 1 defects are still outstanding?”
Trends
“How long is it taking to fix the average bug?”
“How long is taking to implement enhancement requests?”
Testing
“How many defects are in the verifying state?”

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Automated Project Documentation

IBM Rational SoDA
Automates creation and maintenance of project documentation
Incremental report regeneration
Always updates from the source

Maintain project
documentation as
project artifacts
evolve
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Project Documentation with IBM Rational

SoDA Project Data

Requirements
Design Test CM Defects
Analysis

Rational SoDA

Analysis Design Test Status Integrated

Documents Documents Documents Reports Documents

Project Documentation
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IBM/Rational Supports Geographically Distributed Development

Documented, Visible Software Lifecycle Processes

Secure, Traceable Change Management System

Requirements Management

Architecture and Modeling

Manage and Measure Project Success and Quality

Facilitate Communication and Collaboration

IBM Rational Software Development Platform
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Distributed Development Workflow Example

Site A Site A Both Sites Site B Site B

Business Requirements Unit

Model Code
Model & Use Cases Tests

Site A Site A Site A Both Sites Both Sites

System Test
Test Plan Test Cases Defects
Tests Results

Common Process and Guidance

Progress Metrics and Reporting

Software Configuration Management

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IBM Rational Software Development Platform

Business Integration RequisitePro, Rose XDE Rose XDE Developer,
Modeler, Rose XDE Rose XDE Modeler, Rose XDE Developer, PurifyPlus, Test
Modeler Modeler Rapid Developer RAD, RSA RealTime

Business Requirements Unit

Model Code
Model & Use Cases Tests

Functional Tester,
Performance
TestManager TestManager Tester TestManager ClearQuest

System Test
Test Plan Test Cases Defects
Tests Results

Common Process and Guidance – Rational Unified Process, Team Unifying Platform

Progress Metrics and Reporting – Team Unifying Platform

Software Configuration Management – ClearCase, Team Unifying Platform

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IBM Rational Summary Value Propositions

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

Increase Staff Productivity - Improve individual and project productivity to

meet the backlog of business requests. Increase current staff capability to take
advantage of current and emerging technology. Ability to quickly leverage staff
across project portfolios.

Decrease Time to Market - Reduced project delivery time allows clients to

bring projects on line faster while incorporating more business critical features.

Improve Quality – Standard processes, methods, and tools drive higher

quality software which in turn drives business results.

Increase Competitive Advantage - Software is the critical differentiator

for providing new services to customers and for opening new markets.

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The IBM Software Development Platform: Customer Success

Merrill Lynch 300% productivity increase

Ericsson 80% fewer bugs; 100% productivity increase

Lockheed Martin Canada $409K Net Quantifiable Benefit; 222% ROI

Credence Systems 1200% increase in developer productivity

Corporation 90% reduction in bug backlog

Covarity Reduced development lifecycle by 25%

Choice Hotels International 1440% ROI; 9.5M Net Quantifiable Benefit

Information Builders, Inc. 96% productivity increase

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Corporate Drives Life Cycle Geographically

Distributed Development: Thomson Financial
Standardized on Rational RequitiePro, Rational Rose/XDE, Rational
ClearCase MultiSite, Rational ClearQuest, Rational Services
Benefits

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

$200,000

Stable infrastructure established for improved software

reuse 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 team
overseas,”
Rajiv Gupta
Vice President of Technology
Thomson Financial – Corporate Group
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Voice of the Customer: TTI Telecom

Reducing Cost and Accelerating Development with
IBM 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 most

important resources – time and employee productivity.”

Arieh Shalem
Director, Corporate Quality Management

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Web Based
SDP Demo

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