Chandra Kumar Raman Chandra Kumar Raman Lead – Quality / Master Black Belt – HPLead – Quality / Master Black Belt – HPPresident – SPIN ChennaiPresident – SPIN ChennaiChandrakumarqa@yahoo.com

Chandra Kumar RamanEngineering graduate with P.G Diploma in Management

Certified Master Black belt from ISI ISO 9000 Lead Auditor Scrum Master Lean Leader ITIL V3.0 professional

21 years of experience in Quality Process/ Delivery excellence . Adept in the application of ISO, CMM, CMMi, PCMM and Six Sigma

Currently associated with HP in their Quality operations as a Programme Manager and driving the initiatives

President of SPIN ChennaiProgram Chair ASQ chennaiMember of the board of studies of ICTATSyllabus revision committee member : Reviewed the PG syllabus of ME

(Quality) of Anna University and designed syllabus for Lean Sigma and Quality Assurance and Business Excellence models

Advisory board member and jury for various conferences /conventions

Brief on me…

SPIN Chennai SPIN Chennai SPIN, Chennai (Software Process Improvement Network) is a forum of Software

Professionals for the free and open exchange of software process improvement experiences and ideas. The organization serves as a source of educational, scientific and practical information for its members, other SPIN organizations, and the general software community. The SPIN Group aims to be a leadership forum for free and open exchange of SPI experiences and ideas, covering all aspects of how an organization improves the way it develops and maintains software and delivers software intensive services. SPIN organizes a variety of meetings, all aimed at mutual self-help for practitioners.

SPIN Chennai was formed as early as 1994 and was one of the earliest SPIN chapters in India. It has been functioning as a voluntary body of Software professionals since then. Since its inception it has held numerous talks featuring many interesting topics on Software Process improvement featuring some outstanding personalities viz.. Dr. Watts Humphrey (SEI), Mr. Steve Masters (SEI), Mr. David Reo (European Software Institute), ,Mr. Terry Rout, International Office - Griffith University, Mr. Lakshmi Narayanan - CTO, Cognizant Technology Solutions, Mr. Steve Shook, AIS Inc.

FAQ – SPIN : Refer http://www.sei.cmu.edu/collaborating/spins/faq.html Visit www.spinchennai.org for more details

• Establish a leadership forum for open exchange of software process improvement experiences and ideas

• Promote achieving higher levels of process maturity and software quality .

Mission & VisionMission & Vision

Monthly Knowledge sharing sessions

Annual conference

Best Practices sharing

Academia collaboration

Collaboration with other professional forums

ActivitiesActivities

IT-BPO Sector revenue USD 88.1 Billion(FY2011)

Direct Employment- 2.5 million

Indirect Employment- 8.3 million

6.4% of India’s GDP

14% of total exports

10 % of India’s service sector revenues

Indian IT Industry Indian IT Industry

CAGR: 21%CAGR: 21% The industry The industry continues to be an continues to be an export led sector export led sector

with foreign with foreign providers providers

accounting for accounting for over 30% of the over 30% of the

total markettotal market

IT-BPO Industry size

$28.1 Bn

$37.4 Bn

$47.9 Bn

$62.9 Bn$69.4 Bn

$73.1 Bn

IT Industry Impact on Indian EconomyIT Industry Impact on Indian Economy

AreasAreas ImpactImpact

EmploymentEmploymentCreationCreation

• 45% of new urban45% of new urbanjobs created (1995-2005)jobs created (1995-2005)

ContributionContributionto Educationto Education

• 6-7x fold increase in tertiary education in 6-7x fold increase in tertiary education in exporting statesexporting states

Diversity and Global Diversity and Global ExposureExposure

• Women in the workforce estimated to be 30%; Women in the workforce estimated to be 30%; new entrants-45%new entrants-45%

• 30% of delivery outside India30% of delivery outside India

ContributionContributionto Exportsto Exports

• Exports offset closeExports offset closeto 65% of India’s cumulative net oil imports over to 65% of India’s cumulative net oil imports over past decade past decade

Source: Nasscom

Global IT spending Global IT spending

Worldwide IT spending is forecast to total $3.67 trillion in 2011, a 7.1 percent increase from $3.43 trillion in 2010, according to the latest outlook – Gartner

Gaining laurels : Indian IT services Gaining laurels : Indian IT services

India’s IT spending is likely to double between 2007 and 2012 , touching $110bn – Gartner

CriterionCriterion Rating Rating

Language Language Very good Very good

Government support Government support Excellent Excellent

Labor poolLabor pool Excellent Excellent

Infrastructure Infrastructure FairFair

Education system Education system Very good Very good

CostCost Very good Very good

Political and Economic Environment Political and Economic Environment Very good Very good

Cultural compatibility Cultural compatibility GoodGood

Global and Legal MaturityGlobal and Legal Maturity Very good Very good

Data and Intellectual property, Security and privacyData and Intellectual property, Security and privacyGoodGood

Gartner @ Economic times Nov 28, 2008 How about the competitors

India’s Outsourcing RatingIndia’s Outsourcing Rating

Our Pie in IT Outsourcing Our Pie in IT Outsourcing The global outsourcing industry, including offshoring and

onshoring, is estimated to reach $464 billion in 2011,

Revenue of the off shoring segment to amount to $144.8 billion. India will capture 42.5 % of the offshore market to reach

$61.5 billion in revenues, China will continue to lag India with revenues reaching

$45.7 billion equivalent to 31.5 % of the market The Philippines will still hold the third spot with

estimated revenue of $10.7 billion capturing 7.4 %.

Source : Canadian-based ICT research and advisory think tank, XMG Global – 27th July 2011

Competition Competition China also has a stronger hold in the domestic BPO market. In 2010, more than 75

percent of service outsourcing revenue is from the domestic market. Chinese companies are looking at outsourcing locally as an option to compete globally

Indian outsourcers are also starting to realize the importance of the growing domestic market. Indian service providers, which used to shun the domestic Indian market three to four years ago in favor of higher revenues from the US and UK, are now looking to diversify their client base.

The Philippines is likewise taking steps to gain more of the offshoring market share from non-English speaking countries. The Board of Investments announced in July 2011 that it would be teaming up with IBM Philippines to conduct research and implement programs to build the multi-lingual talent pool of the country for business process outsourcing

Vives concluded, “Given the continued growth of competition and increasing demand from other countries besides the US and Europe, XMG Global expects a sustained displacement and redistribution of market share not only between India and China but in other emerging outsourcing destinations such as Brazil, Mexico and Malaysia.”

Challenges Challenges Be competitive by Sustaining the cost advantage

Moving up in the value chain

Sustaining the present credentials in the Quality of the deliverables

Availability of competent and quality resources Time to Train the Resources Training Cost

35 % of the Graduates only can be productively employed – Economics times

Shift in focus Shift in focus

Focus is shifting to attracting to huge investments, and engaging employees to understand customers customer From becoming employable to deployable

The world has changed The world has changed

X to Y Gen

Theory XTheory XWith Theory X assumptions, management's role is to coerce and control

employees.

People have an inherent dislike for work and will avoid it whenever possible.

People must be coerced, controlled, directed, or threatened with punishment in order to get them to achieve the organizational objectives.

People prefer to be directed, do not want responsibility, and have little or no ambition.

People seek security above all else..

Theory YTheory Y With Theory Y assumptions, management's role is to develop the potential in employees and help them to release that potential towards common goals.

Work is as natural as play and rest.

People will exercise self-direction if they are committed to the objectives (they are NOT lazy).

Commitment to objectives is a function of the rewards associated with their achievement.

People learn to accept and seek responsibility.

Creativity, ingenuity, and imagination are widely distributed among the population. People are capable of using these abilities to solve an organizational problem.

People have potential.

Stake holdersStake holders Who are the stake holders ?

Customer-Organization- Customer-Organization- EmployeeEmployee

CustomerCustomer

Organ

izatio

n

Organ

izatio

nEm

ployee

Employee

o Product/ Service Product/ Service o QualityQualityo Cost Cost

o Cost

of D

elive

ry

Cost

of D

elive

ry

o Prod

uctivit

y

Prod

uctivit

y

o Top l

ine

Top l

ine

o Earnings and Learnings

Earnings and Learnings

o Work Life Balance

Work Life Balance

o Brand

Brand

Mfg vs IT cost frame work Mfg vs IT cost frame work

Mfg Industry

RMPlant Machinery SalariesOver heads Profit

IT Industry

Salaries Building and other Overheads Profit

Salaries vs Profit Salaries vs Profit

Salaries Other OH Profit

Say 55 25 20

Y1 55+6=61 25 14

Y2 67 25 8

Y3 73 25 2

Y4 80 25 -5

Salaries Other OH Profit 55-60 X 18-22

Above numbers are in %

Cost of Error /Defect Cost of Error /Defect

Averge cost per hour Finacial :

Brokerage operations Credit card sales

$ 6.5 million$ 2.6 million

Media $ 150 thousandPay per view Retail :Home shopping TV Catalague sales

$ 113 thousand $ 90 thousand

Transportation :Airline reservation $ 89.5 thousand

Cost of down time Averge cost per hour

Finacial :

Brokerage operations Credit card sales

$ 6.5 million$ 2.6 million

Media $ 150 thousandPay per view Retail :Home shopping TV Catalague sales

$ 113 thousand $ 90 thousand

Transportation :Airline reservation $ 89.5 thousand

Cost of down time

Lack of process knowledge

Lack of tools knowledge

Lack of system knowledge

Lack of domain knowledge

Introduced with other repair

Change coordination

Individual mistake

Communication problem

Is it possible to prevent ?

Human ErrorsHuman Errors

Why we need a process ?Why we need a process ?

To be cost competitive Quality

To do the Right things first ( To minimize the rework/ COPQ)

Consistency Measure the process and product Quality To prevent the defect Optimize COQ

To provide consistent deliverables ( Language/ Culture / Country ) To meet Stake holder needs To meet Statutory / Regulatory Requirements

Process : The means by which people, procedures, methods, equipment and tools are integrated to produce a desired end result

• Industry is growing – X% - YOY • Churn in the human resources

Process flowProcess flow

Software Software Engineering Engineering

ProcessProcess

Project Project Management Management

ProcessProcess

Software Software DevelopmentDevelopment

Can good technical knowledge on basics alone fetch you the job?

Would knowledge on SW Engineering Processes increase your employability?

Why do we need to understand the Organisation needs?

How would understanding of customer needs benefit me?

Is it required to understand the different Types of Projects ( Development / Maintenance / Support) in IT?

Points to PonderPoints to Ponder

FROM TO

Any Academic ProjectsProjects on Emerging

Technologies /Business Areas

Focus merely on Technical learning Soft Skill

Sheer Class-room lectures Application of Technical knowledge

Academic QualificationPromotion of Additional

Certifications

Aligning to curriculumForums of Industry (i.e. ASQ, SPIN ,

IEEE, CSI, PMI etc)

Faculties to look forward to academicians

To Industrialists to bring the needs to lecture hall

Recommendation to ShiftRecommendation to Shift

Models and Methodologies Models and Methodologies ISO Standards CMMi PCMMSix Sigma Lean ITIL Frame work PSP /TSPKnowledge Management

Learning's from the past experience Sharing the best practices

Driving factor : The desire to deliver added value and value for money to the customer

In Summary . . . In Summary . . .

Understanding the Software Engineering / Project Management Process and it’s Importance is as important as Technical skills.

Understand the Customer Expectation than the Specifications.

See the big picture and meet the industry expectation

Emerging Quality Models / Skills will be a big plus, which will give a competitive edge

Thank you !Thank you !

Coordinates:

Raman Chandra KumarRaman Chandra Kumar chandrakumarqa@yahoo.com98407127559840712755