IT ADMO Productivity
Introduction
There is an increasing challenge that is being faced by the delivery teams in the SI or IT Supplier companies in terms of human resources & talent retention due to increased attrition rates. Having this challenge, teams are struggling to meet the delivery KPIs and SLAs and ultimately impacting the customer satisfaction index. Not only that, it is creating an impact in Revenue as well as teams are not able to fulfil the resource & talent requirements on-time as required for the project deliveries in same proportion as that of the attrition rate.
Adding to this, there are new talent sourcing models such as Crowd sourcing, Freelancing, etc which are creating enough competition for the big IT Supplier/SI companies to worry about to plan for the appropriate competitive advantage against those threats.
The above-mentioned challenges have been aggravated in recent time due to various factors and it is inevitable that these challenges will remain going forward as well in varying impact ratio as per the industry trends, external factors and as well as IT Supplier/SI Company roadmap and agendas.
Moreover, Clients are in aggressive strategy to reduce the operational costs across the board and at the same time they want to increase business revenues. The expectation on vendors is to reduce the human resources and effort by 50% and double the productivity going forward which is a huge challenge to address immediately and get prepared for the tuff future by the IT Suppliers/SI Vendors.
Background
Some Clients have started using BCE (Billable Coding Effort) to measure and benchmark software developer productivity & output.
- BCE calculations incorporate volume, complexity and the interrelatedness of the code
- The data is gathered via source code repositories such as Subversion, Git or Jira
- Few Clients want to set the targets of BCE levels to maximum benchmark which is 5.0 and steps are being taken to reach to those levels in few milestones
Going forward Clients are taking a strategy to consider developer output productivity (e.g. BCE, amongst others) to be widely measured and improved especially with IT Supplier/SI Vendors.
Definitions
Effort
- Story Points
- Person Days
Productivity
- Business Functions or Features Delivered (Stories)
- Lines of Code
- Tests Passed
- Lead Time for Delivery
Business Value
- New Business Revenue Generated for Client with those features
- New Product Features or Services Introduced to Market
- Efficiency Improvement for End Customers
- Reduction of Issues in Live
- Reduction of Incidents
- Transactions Automated
- Reduced Lead Time for Workflows for Agents
- Reduced Number of End Customer Complaints
- Avoid Regulatory Penalty
- NPS Improvement
- CSAT Improvement
- Lead Time reduction to Market
Current Situation in General
Future Improvements as expected by Clients from IT Supplier/SI Vendors
Key Leavers for Productivity Improvement
Unfortunately, there is no magic box available to double the productivity by reducing the effort to 50% just like that. It requires many strategic steps and investment to be considered immediately by the IT Supplier/SI vendors.
- Investment for Digital Transformation in ADMO: One of the first strategic step that need to be taken is to invest now itself for Productivity Measure & Improvement so that upcoming Client demands can be met easily. It’s nothing but transforming the way we do ADMO by divorcing the traditional approaches and methods and come up with new efficient and effective ways and that has to be executed by IT Supplier/SI Vendor itself internally as a proactive measure in order to sustain and scale up the business going forward.
- New Techniques, Methods & Tools for Productivity Measure & Improvement
- Architecture and Technology Modifications
- New Digital Processes & Practices for Effective Collaboration
