"World Quality Report: Trends in Technology, Organization and Outsourcing"

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1 W5 Track 10/7/ :30 AM "World Quality Report: Trends in Technology, Organization and Outsourcing" Presented by: Charlie Li & Murat Aksu Capgemini Brought to you by: 330 Corporate Way, Suite 300, Orange Park, FL

2 Charlie Li The vice president of Global Quality and Testing Services for Capgemini s Financial Services Sector, Charlie Li helps customers mitigate the risks of IT deployments and reduce the overall cost of IT. He is the author of Optimize Quality for Business Outcomes: A Practical Approach to Software Testing, now in its third edition in both English and Japanese. Charlie has published several white papers in the automated quality software industry and has spoken at leading industry events throughout the country including both the STAREAST and STARWEST conferences. Murat Aksu Murat Aksu heads Capital Markets Testing for North America in Capgemini. He has played several leadership roles in sales, service delivery, account management, competitive intelligence, product marketing and marketing in his career span of more than 13 years. During the 7 successful years working with HP Mercury Interactive, he was the Manager of Competitive Intelligence and Director of Product Marketing responsible for the Performance Testing and SOA solution tool sets. Prior to joining Capgemini, Murat was the VP of Products and Marketing at Zenoss.

3 World Quality Report: Trends in Technology, Organization and Outsourcing Charlie Li, VP, Quality Management and Testing Murat Aksu, Practice Head, Quality and Testing Agenda Demographics of participants Tools and Technology State of Quality Test Organization Testing Outsourcing Economic Conditions Trends 2 1

4 Quality Report Profile - Geography 15% 50% 15% Asia Europe USA 3 Quality Report Profile - Industry 47% 0% 5% 2% 24% 4% 5% 6% 7% Financial Services Government Health Care Manufacturing and Logistics Others Research & Education Telecomm and Media Energy Information Technology 4 2

5 Quality Report Profile Size Of The Company 45% 35% 25% 15% 5% 0% Total Enterprise Large Mid Size Small 5 TOOLS AND TECHNOLOGY APPLICATION LIFECYCLE MANAGEMENT (ALM) IS THE MARRIAGE OF BUSINESS MANAGEMENT TO SOFTWARE ENGINEERING MADE POSSIBLE BY TOOLS THAT FACILITATE AND INTEGRATE REQUIREMENTS MANAGEMENT, ARCHITECTURE, CODING, TESTING, TRACKING, AND RELEASE MANAGEMENT.* *WIKIPEDIA 6 3

6 Is Application Complexity Increasing? 100% 90% 88% 80% 70% 60% 50% Yes No 12% 0% Total 7 Leverage Of Automation Technology Across ALM 25% 25% 22% 15% 13% 18% 15% 7% 5% 0% Business IP Domain Management Requirements Test Cases Business Flow Modeling Use Case Defect Management 8 4

7 Need For Automation Investment 25% 22% 19% 18% 19% 15% 12% 5% 0% Business Flow Modeling Test Management and Execution Environments and Data Management 2% Requirements Defect Management None, we have all that we need 9 Receiving ROI and Fully Leveraging Your Technology Investments? 21% 18% 16% Less than 25% Up to 50% Up to 80% None Can't quantify/do not know 44% 46% 50% 54% 7% 7% 13% 16% 18% 7% 12% 5% 7% 9% 10 5

8 STATE OF QUALITY 11 Overall Quality Getting Better? (Last Two Years) Information Technology Energy Telecomm and Media Research & Education Others Manufacturing and Logistics Yes No Health Care Government Financial Services 0% 60% 80% 100% 12 6

9 Which ALM Area Poses The Greatest Challenge? 35% 50% 34% 44% 13% 16% 24% right investments Business consensus on the 23% 28% 14% 3% 7% 7% 16% 4% 3% 9% 6% 14% Change management Getting development right Other (eg. Source Code Control, Build Management) Testing and validation Understanding and capturing business requirements 13 Organization s ALM Process Consistently Followed For All Projects? 100% 90% 80% 70% 60% 50% More than 50% of the time About 50% of the time Up to 25% of the time Less than of the time Never 0% Enterprise Large Mid Size Small 14 7

10 % Reuse Of The Quality And Testing Artifacts ALM 100% 90% 80% 70% 60% 50% 0% Enterprise Large Mid Size Small 50% and above About 50% Up to 25% Less than None 15 Benefits From Reusability Information Technology Energy Telecomm and Media Research & Education Others Manufacturing and Logistics Health Care Government Financial Services 0% 60% 80% 100% Cost reduction Faster time to market for applications More testing coverage leading to higher overall quality of the application Shorter and more agile testing cycles We are not re using any testing artifacts 16 8

11 TEST ORGANIZATION 17 Testers Domain And Business Experience 42% 16% 9% 23% Some Domain/Business 27% 58% 60% Experience 62% No Domain/Business Experience 29% Domain and Business SMEs as Testers 26% 13% 35% 18 9

12 Do Testers Have Business Analyst Experience? 21% 17% 17% 13% 43% 52% 52% 58% Somewhat No Yes 31% 31% 36% 19 QA Required To Have Development Experience? 61% 45% 48% 35% 22% 23% 14% 7% Sometimes No Yes 43% 32% 20 10

13 QA With Dev Background Better QA? 21% 33% 39% 31% 39% 36% 43% Sometimes No Yes 36% 23% 31% 21 Business Think QA Is Only About Executing Test Scripts? 57% 71% 70% 77% 23% 29% Yes No 43% 22 11

14 TEST OUTSOURCING 23 Do You Outsource QA? 16% 48% 56% 38% 62% 44% 52% Yes No 84% 24 12

15 QA Outsourcing Trend 16% 17% 17% 18% 32% 38% Staying the same level 17% 7% 6% 16% 8% 58% 47% We do not use any outsourced resources for testing Increasing Reducing 29% 45% 29% 25 Outsourced Resources With Relevant Industry- Domain And Technology Experience? 38% 41% 34% 50% 28% 24% 29% 21% 5% Somewhat No Yes 11% 21% 15% 24% 21% 15% 23% We do not use any outsourced resources for testing 26 13

16 ALM Automation Reduce Outsourced Resources#? 19% 36% Somewhat No 54% 56% Yes 25% 24% 16% 27 Increase Leverage Of Testing Outsource For Value Added IP And Solutions? Information Technology Energy Telecomm andmedia Research & Education Others Manufacturing and Logistics Health Care Government Financial Services 0% 60% 80% 100% No, we only need staff augmentation for cost reasons No, we want their solutions and IP but don t need their resources Yes, we need more value add from our vendors 28 14

17 ECONOMIC CONDITIONS 29 Economic Effects Of IT Spending By Industry Information Technology Energy Telecomm and Media Research & Education Others Manufacturing and Logistics Health Care Government Financial Services 0% 60% 80% 100% I don't know Reduced IT investments Increased IT investments Stayed the same 30 15

18 Economic Effects Of IT Spending 100% 90% 80% 70% 60% 50% 0% Engineer Senior Engineer Mid Manager Executive I don't know Reduced IT investments Increased IT investments Stayed the same 31 Effect Of Economic Crisis On Your Work Load? 100% 90% 80% 70% 60% 50% 0% Enterprise Large Mid Size Small Stayed thesame Increased or stayed the same due to cuts in resources Increased due to new application development projects Decreased due to project cancellation 32 16

19 More Investment In New App Dev Projects? 65% 81% 71% 51% 9% 14% 16% 16% No Only those that generate ROI in less than 6 months Yes 33% 15% 19% 33 Expectation Of Apps Project Workload For 2010? 32% 14% 11% 27% 25% 22% 0% 4% 34% 8% Stay the same Decrease Increase Unclear at this point in time 41% 67% 5% 50% 34 17

20 Trends Companies will increase investment in areas of requirements, test environment and data management Increased leverage of Agile type of methodologies for shorter application lifecycles App complexity increases, requirements challenges, needs to improve ROI will require future QA to be more business focused and have a stronger technology background QA team to become more skilled, more nimble and smaller teams Europe is leading in the leverage of outsourcing for testing and expected to outpace other regions in the growth of test outsourcing Expect IT spending to shift more from Ops to new apps (increased competitive landscape, legacy modernization, etc.) Americans lead the world in agreeing with Obama with their inherent optimism that things will get better in 2010 followed by Asians (Note: Kim Jong -Il declined to participate in the report and declared martial law on all North Korean Testers) 35 18

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