Overcoming challenges to ensure success of outsourcing/offshore projects · PDF file · 2005-02-22Overcoming challenges to ensure success of outsourcing/offshore projects Osmond Ng

®

IBM Software Group

© 2004 IBM Corporation

Overcoming challenges to ensure success of outsourcing/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 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

$0$10$20$30$40$50$60$70

All onsite Distributed Best Case Distributed - Worst Case

Tota

l Dev

elo

pmen

t Cos

t$M

illio

n

100 FTE Decreased ProductivityIncreased 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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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.

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

Unit Tests

BusinessModel Model Code

Test Cases DefectsTest Plan System Tests

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 Example

Site 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

Rapidly construct, transform,integrate

and generate

code

Rapidly construct, transform,integrate

and generate

code

Design, create,

and execute

tests

Design, create,

and execute

tests

Model, simulate, assemble,

and monitor business

processes

Model, simulate, assemble,

and monitor business

processes

Visuallymodel

applications and data

Visuallymodel

applications and data

Provision, configure, tune and

troubleshoot applications

Provision, configure, tune and

troubleshoot applications

Deployment Manager

� 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 qualityProject

Manager

Senior Executive

� 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 Console®Eliminate Software

Development Chaos with 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 improvedprocess 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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Unit Tests



TestResults

Site A 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-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 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 platform that provides you with software development knowledge, guidelines, templates, and examples for every member of your team

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Process Delivery Tools: Project Web Site

Graphical navigationGraphical Graphical navigationnavigation

Index, Search, Getting Started, Feedback, ..

Index, Search, Getting Index, 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

Add promotion calculation

Bug 179

New GUI

button

New platform

New web design

Bug 849Bug

527

Bug 251

New customer

transactionBug 348

IntegratorDevelopers

Build 3

Build 2 Build 1

Managing Change and Complexity: The Problem

Project Manager

Testers

Why did the build break?Why did the Why did the build break?build break?Of course I

didn’t forget a file...

Of course I Of course I didndidn’’t forget t 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 many severity 1 bugs

are left?

How many How many severity 1 bugs severity 1 bugs

are left?are left?

Is bug 873 fixed in this build?

Is bug 873 fixed in Is bug 873 fixed in this build?this build?

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Change Request ManagementIBM Rational ClearQuest

The Leading SCM Solution Ranked #1 for the Last Five Years*

�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

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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 User

DatabaseScalable

User DatabaseScalable

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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 interfacesProject

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 ChangeIBM Rational ClearCase

� Easy to Use Web and native client interfaces

� Makes parallel development practical

The Leading SCM Solution Ranked #1 for 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

Context sensitive menus

Context Context sensitive sensitive menusmenus

Choice of Rational or

Microsoft CM dialogs

Choice of Choice of Rational or Rational or

Microsoft CM Microsoft CM dialogsdialogs

Change management within Change management within IBM WebSphere Studio and IBM WebSphere Studio and

Microsoft Visual Studio .NETMicrosoft Visual Studio .NET

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Manage Assets In A Distributed Environment

� Supports development across geographically distributed project teams

� Balances the development load

� Facilitates backup of VOBs

Multisite : Around the World 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 Distributed Team Development

� Enables 24x7 development� Provides secure repository� Tracks changes: Who did what, when

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Summary - MultiSite Change Management

SynchronizeBaseline Artifacts

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


Unit Tests



TestResults

– ClearCase, Team Unifying Platform

– Rational Unified Process, Team Unifying Platform

– Team Unifying Platform

Business Integration Modeler, Rose XDE

Modeler

Rose XDE Developer, PurifyPlus, Test

RealTime

Team Unifying Platform



ClearQuest




RequisitePro, Rose XDE Modeler

Rose XDE Modeler,

Rapid Developer

WebSphere Studio, Rose XDE Developer,

Rapid Developer

Functional Tester,

Performance Tester


Unit Tests



TestResults





Modeler


RealTime




ClearQuest





Rose XDE Modeler,

Rapid Developer


Rapid Developer

Functional Tester,

Performance Tester


Unit Tests



TestResults





Modeler


RealTime




ClearQuest





Rose XDE Modeler,

Rapid Developer


Rapid Developer

Functional Tester,

Performance Tester

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

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Requirements ManagementIBM 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

�3 interfaces - work the way you want�Document-centric or database-centric - your choice

Microsoft WordMicrosoft WordDatabaseDatabase

WebWeb

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IBM Rational RequisitePro Intuitively Managing Requirements

Microsoft Word�A familiar way to work�Contextual information�Extensive formatting

Requirements Database�Security�Organization�Reporting and metrics

The Power of a Database and the Freedom of Word

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Communicating Changes and Their Impact

“With Rational RequisitePro's

suspect links, my team members and I can immediately see

changes that are made…”

Jason Oliver, Kodak

� Suspect links

� Email notification of changes

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Architecture, Modeling and TestingArchitecture, Modeling and Testing



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

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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 Diagrams1. 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

� 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?

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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

Business 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 analysis PlanPlan

CreateCreate

ExecuteExecute

AnalyzeAnalyze

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Manage TestIBM Rational TestManager

Understand and Communicate Test

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Manage Test Cases and Trace to Requirements

IBM Rational TestManager

Test Case properties

Test Suite Execution Log

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Architecture, Modeling and TestingArchitecture, Modeling and Testing



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

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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 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 StatusProject 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 DocumentationIBM 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

Project Documentation

Analysis Analysis DocumentsDocuments

DesignDesignDocumentsDocuments

TestTestDocumentsDocuments

StatusStatusReportsReports

IntegratedIntegratedDocumentsDocuments

Rational SoDARational SoDA

RequirementsRequirementsAnalysisAnalysis DesignDesign TestTest CMCM DefectsDefects

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Facilitate Communication and CollaborationFacilitate Communication and Collaboration� IBM Rational Software Development Platform

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Unit Tests



TestResults

Site A Site B







Site A

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Unit Tests



TestResults





Modeler


RealTime

TestManager TestManagerTestManager ClearQuest




IBM Rational Software Development PlatformRequisitePro,

Rose XDE Modeler

Rose XDE Modeler,

Rapid DeveloperRose XDE Developer,

RAD, RSA

Functional Tester, Performance

Tester

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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.

IBM Rational Summary Value Propositions

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� Reduced development lifecycle by 25%Covarity

� 1200% increase in developer productivity � 90% reduction in bug backlog

Credence Systems Corporation

� 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

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Corporate Drives Life Cycle Geographically Distributed Development: Thomson FinancialStandardized 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 TelecomReducing 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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