Standardization of Pakistani IT Industry
Overview of the Capability Maturity Model Integration (CMMI)
Repeated studies have confirmed that less than 25% of software development projects ever meet their objectives. Extensive research has shown that these time and cost overruns are largely avoidable, because the processes that produce high quality software on time, and on budget, are well-known.
Designed to minimize the high frequency of failures in outsourced software development projects, Carnegie Mellon University's Software Engineering Institute (SEI) has developed the Capability Maturity Model (CMM) to assess a vendor's ability to complete developmental projects within a specified budget and timeframe. The CMM is a collection of best practices grouped into five levels of maturity, specifically developed "...to help others make measured improvements in their Software Engineering/System Engineering and Project Management capabilities."
Like the ISO 9000 standard, the Capability Maturity Model (CMM) is also a model-based software process improvement approach. PSEB recommends that, for the growing number of Pakistani software and service companies that are already ISO 9000-certified - and are now hoping to achieve a higher level of process maturity - should consider qualifying for a CMM certification as well.
This model addresses certain fundamental business decisions not supported by the ISO 9000 or other systems of product quality. The CMM enables companies to better serve their customers' interests by providing answers to the customers' decision problems, such as: Is the supplier able to sustain the reliability of its production? It also effectively answers internally-focused questions, such as: How can we improve the reliability of our production? How can we measure the effectiveness of our project management processes? The primary aim of CMMI is continuous process improvement, from the individual task level to the corporate level.
The project has the following objectives:
- To provide CMMI Level 2 consultancy and appraisal assistance to 6 IT companies, and bear 75% of the total cost of CMMI in achieving CMMI Level 2.
- To provide CMMI Level 3 consultancy and appraisal assistance to 3 Pakistani IT companies, and to bear 75% of the total cost of CMMI in achieving CMMI Level 3.
- To provide CMMI Level 5 consultancy and appraisal assistance to 1 Pakistani IT company, and bear 75% of the total cost of CMMI in achieving CMMI Level 5.
- To conduct 3 SEI-registered workshops on an "Introduction to CMMI", and bear 80% of the total cost of the workshops.
- To conduct 3 workshops on "Software Development and Project Delivery", and bear 80% of the total cost of the workshops.
- To ascertain international trends and requirements by enhancing the quality of the process and products at participating IT companies using CMMI.
This project is directly linked with PSEB's "Company Capability Development" area of expertise.
This project is directly linked with PSEB’s "Company Capability Development" area of expertise.
The following main activities will be carried out during the execution of the project:
1 Requirement of Workshops
The workshops mentioned in the objectives are common deficiencies found in Pakistan's IT industry that need to be removed for achievement of CMMI. These workshops will train these companies at a single location, and will result in cost-savings; otherwise these activities will need to be repeated for every company separately.
Three SEI-registered workshops on an "Introduction to CMMI" will be conducted mainly in Karachi, Lahore and Islamabad. These workshops are a SEI requirement for becoming an Appraiser Team Member (ATM). All applicant companies will need two to three of their employees to attend them for CMMI implementation, and then a final appraisal.
PSEB will conduct 3 workshops on "Software Development and Project Delivery". All these workshops will be conducted in Lahore, Karachi and Islamabad.
3: Status of CMMI in Pakistan
PSEB has successfully completed two different projects on CMMI so far. The first project, "Standardization of Pakistani IT industry (CMM Pakistan 2003)" with a cost of Rs. 39.9M was aimed at bringing the top five Pakistani IT companies to CMMI Level 3 or above. The second project, "Standardization of Pakistani IT industry on CMMI" with a cost of Rs. 39.3 M, was aimed at bringing at least 18 companies to CMMI Level 2. The objective of running these two projects was to initiate CMMI activities in Pakistan, and create a base for CMMI implementation at the mass level.
The results of these two projects are as follows:
- One company achieved CMMI Level 5.
- Four companies achieved CMMI Level 3.
- Eighteen companies have achieved CMMI Level 2.
The consultants will assist the participating companies, and will pay as many visits as required, of any duration (deemed feasible by the software company, consultancy company and PSEB) to define, implement and monitor the procedures/processes in line with the PAs CMMI level under implementation. The time and frequency of visits is adjustable according to the requirements.
Pre-appraisals will be conducted in the companies before every final appraisal in order to diagnose the readiness of the company. This phase will result in a pre-appraisal report, giving the PA profile of the organization, as well as recommendations for the final appraisal.
6: Final Appraisal
Lead appraisers with the required authority from the SEI will conduct the final appraisals. This will result in a report, mentioning the mapping level of the organization's processes and procedures with the PAs of CMMI level in scope. Upon successful appraisal, the company will be rated at a specific CMMI level by the SEI
7: Registration Procedure
- IT companies will be asked to submit an EOI through tendering, and upon selection they will be asked to submit their share as per the contractual terms.
- PSEB will calculate the 20% cost of all workshops, and will divide it equally among all participants. This cost will be used to partially (20%) fund the workshop
The project will be monitored in the following manner:
- PSEB will directly make the payments to the consultancy and appraisal companies for the service to be rented.
- PSEB will conduct periodic monitoring of the work being rendered.
- A committee will be formed to make all decisions pertaining to the selection of the companies (consultancy/appraiser/IT). The structure of the committee will be as follows:
- Managing Director, PSEB
- Director Projects, PSEB
- Director Finance, PSEB
- Project Manager, PSEB
- Representative IT & Telecom Division
- Representative, PASHA
9: Selection Criteria for IT Companies
The selection criteria for the IT companies is as follows
For CMMI Level 2
- The company must have more than 20 employees: 20 Points.
- Company must have ISO 9001: Y/N.
- Company must be at least 2 years old: 10 Points.
- Company must have an annual income of Rs. 2,000,000 (domestic and/or export): 20 Points
For CMMI Level 3
- The company must have more than 30 employees: 20 Points.
- Company must have CMMI Level 2: Y/N.
- Company must have an annual income of Rs. 4,000,000 (domestic and/or export): 20 Points
For CMMI Level 5
- The company must have more than 50 employees: 20 Points.
- Company must have CMMI Level 3: Y/N.
- Company must have an annual income of Rs. 5,000,000 (domestic and/or export): 20 Points.
10. Selection Process
- Companies will be invited to submit their expression of interest through national tendering.
- The selection committee will perform a technical evaluation, and will award the points.
- Companies obtaining higher points will be selected
11: Selection Criteria for Consultancy/Appraiser Companies
The selection criteria for the consultancy/appraiser companies will be:
- The company must have provided CMMI Level 2 consultancy and appraisal services to at least five companies. All these five companies should have achieved CMMI Level 2: 20 Points.
- The company must have provided CMMI Level 3 consultancy and appraisal services to at least two companies, and both these companies should have achieved CMMI Level 3: 20 Points.
- The company must have provided CMMI Level 5 consultancy/appraisal services to at least one company, and that company should have achieved CMMI Level 5: 20 Points.
- The company must have at least one SCAMPI Lead Appraiser associated with it
12. Selection Process
- PSEB will advertise in national newspapers, and ask companies to submit their technical and financial proposals.
- The committee will open the technical proposals, and conduct a technical review using the criteria already mentioned.
- The committee will open the financial proposals of technically-compliant companies, and will select the ones with the lowest bids. PSEB can ask companies with higher bids to match the lowest bid, and select as many companies as PSEB many require.
- The estimated costs for achieving various CMMI Levels are as follows:
- From scratch to CMMI Level 2: $20,000 per company.
- CMMI Level 2 to CMMI Level 3: $40,000 per company.
- CMMI Level 3 to CMMI Level 5: $50,000 per company
These costs are only an estimate, and can change during the tendering process.
All foreign consultancy/appraiser companies (if selected) will be asked to partner with a local Pakistani company, and transfer the CMMI consultancy/appraiser skills to the employees of their local partners
13: Selection Criteria for a Training Company to conduct an "Introduction to CMMI" Workshop
- The company should have conducted at least one workshop on an "Introduction to CMMI": 20 Points.
- The company should hold the status of a SEI transition partner to conduct this workshop: Y/N.
- The lead trainer nominated by the company should be authorized/qualified by the SEI to conduct this workshop: Y/N.
- The lowest bid among technically-compliant companies (PSEB may select more than one company)
14: Selection criteria for training company to conduct workshops on "Software Development and Project Delivery"
- The company must have past experience of conducting such workshops: 20 Points.
- The company may be from the Global 1000 list: 30 Points.
- The company must be working in IT for at least 5 years: 10 Points.
15: Selection Criteria for Participants
- All companies undergoing CMMI implementation (any level) will be allowed to nominate 3 persons (maximum) per workshop. PSEB will bear 80% of the total cost of each workshop, while the remaining cost will be divided equally among the participants.
- All nominated participants should hold a minimum of 14 years' education.
- PSEB will fill the remaining seats (after adjusting all the nominees) from the industry on a "first-come-first-served" basis
16: Workshop Curriculum
- Introduction to CMMI
The curriculum devised by the SEI will be used for this workshop.
Duration: 5 days (minimum).
- Software Development and Project Delivery
This course allows software companies to understand:
- The importance of a customer-centric product development model.
- The importance of product life-cycle and portfolio management in software product development.
- The key success factors for delivering projects to customer organizations, such as project vision, scope, critical success factors and risk management.
- The role and importance of iterative software development frameworks such as the Microsoft Solutions Framework in establishing both the processes and team model that support customer-centric product development.
- Customers' behavior, customer satisfaction and service quality, customers' decision-making process.
- Service as a process: Coordination of front and backstage operations in an ISV.
- Measuring ISV performance: Creation of performance benchmarks, performance measurement systems and their alignment with the firm's strategies and goals.
- International marketing of software products and services, current trends, developing global strategy, modes of globalization, firm-level and industry-level drivers of globalization, keys to successful export of software products and services.
- Duration: 2 days minimum
Mr. Saif-ur-Rehman Korai
Pakistan Software Export Board (G) Limited
2nd Floor, Evacuee Trust Complex (ETC)
Sector F-5, Aga Khan Road
Islamabad – 44000
Telephone: 92-51-9204074 Extension 128