IT Key Metrics Data Applications Development Metrics Summary Report 2008

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1 IT Key Metrics Data Applications Development Metrics Summary Report Gartner, Inc. and/or its Affiliates. All Rights Reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Gartner shall have no liability for errors, omissions or inadequacies in the information contained herein or for interpretations thereof. The reader assumes sole responsibility for the selection of these materials to achieve its intended results. The opinions expressed herein are subject to change without notice.

2 Gartner, Inc. IT Key Metrics Data Applications Development Metrics Summary Report 2008 IT Key Metrics Data Summary This is a special report for Gartner Benchmarking survey respondents. For more surveys and reports visit: For more information on Gartner s IT Key Metrics Data research visit: To learn more about Gartner Consulting s Benchmark Analytics solutions, go to: Gartner s IT Key Metrics Data research has been providing business, educational, and government leaders with insight into global IT spending, staffing and performance measures for over a decade. Several key applications development findings from Gartner s 2008 IT Key Metrics Data benchmark report are outlined in this report. The measures that follow highlight key applications development trends. In this analysis, we will explore life cycle distribution in new applications development, software engineering effort, and distribution of staff by application activity. Some key findings to be addressed in this report: In 2007 On average, development time and unit testing consume the most in terms of time and effort in the application development lifecycle. On average, the cost per function point developed is $353 On average applications projects are completed 14% over budget and 19% beyond planned schedule.

3 Looking Ahead The measures that follow highlight key distribution measures in the application development domain. The measures explored should help to identify overall trends, although individual variations from these trends may be justified by specific business needs, as well as differences due to size and complexity of an organization s development environment. New Development Activity Figure 1. Applications Development Lifecycle Distribution 0% 20% 40% 60% 80% 100% 2007 Training & Other 6% Quality Management 5% Implementation & Deployment 6% Defect Removal 6% System Testing 11% Development Time & Testing 25% Design 16% Requirements Analysis & Management 13% Project Management 12% Source: Gartner IT Key Metrics Data (April 2008) Distribution of work across the applications project lifecycle can be an effective measure to understand where time and effort are typically spent and can help identify opportunities for performance improvement.

4 Figure 2. Cost Per Function Point Developed $1,400 $1,200 $1,000 $800 $600 $400 $200 $353 $- = Range = Average = Middle Quartiles Source: Gartner IT Key Metrics Data (April 2008) Cost per function point developed is a measure of cost effectiveness of new development activity.

5 Figure 3. Variance From Planned Project Delivery Schedule 70% 60% 50% 40% 30% 20% 10% 19% 0% = Range = Average = Middle Quartiles Source: Gartner IT Key Metrics Data (April 2008) Variance from planned schedule can reveal how effectively projects are estimated and managed.

6 Figure 4. Variance From Planned Project Budget 60% 50% 40% 30% 20% 10% 0% -10% -20% -30% 14% = Range = Average = Middle Quartiles Source: Gartner IT Key Metrics Data (April 2008) This measure shows the variance from planned budget, which can provide insight into the cost efficiency of the project team.

7 Figure 5. Distribution of Costs: Development % 20% 40% 60% 80% 100% 2007 Occupancy 3% Outsourcing 5% Personnel 78% Software - Development Software 2% Software - User Vendor Packages 9% Hardware 3% 2007 Max 2007 Min Hardware 10% 0% Software - User Vendor Packages 30% 0% Software - Development Software 40% 0% Personnel 98% 17% Outsourcing 81% 0% Occupancy 9% 0% Source: Source: Gartner IT Key Metrics Data (April 2008) Provides insight into what cost areas are consuming applications budget.

8 Performance Measurement Solutions From Gartner High level Spending and Performance Assessments & Metrics IT Key Metrics Data: Published Metrics, IT Key Metrics Data provides you with immediate access to authoritative data on staffing levels, spending, key performance metrics and trends for all areas of IT to support your business and clients changing environments. Gartner for IT Leaders Scorecard: Provides an objective external assessment of IT costs, process maturity and service levels designed to identify strengths and areas for improvement based on a peer comparison using standard measurement frameworks for tracking and communicating IT performance. Granular Decision and Optimization Level Benchmark Solutions These offerings analyze the costs associated with operating internal IT functions and the price competitiveness of outsourced IT services. We provide peer-group comparisons for clients in the following areas: Enterprise Computing (Unix, NT, Mainframe) Client and Peripherals Help Desk Application Development and Support Voice and Data Network (Wide Area and Local Area) Enterprise Storage Management Customer Contact Center

9 This is a special report for Gartner Benchmarking survey respondents. For more surveys and reports visit: For more information on Gartner s IT Key Metrics Data research visit: To learn more about Gartner Consulting s Benchmark Analytics solutions, go to: About Gartner Consulting Gartner Consulting provides strategic consulting at the point where business and technology converge combining the rigor of research with the wisdom of practical experience. The synergy between Gartner s management consultants and thought leading analysts enables organizations to maximize business potential and capitalize on opportunities in today s technology marketplace. Our ability to integrate Gartner s vast array of knowledge assets provides unique value as you: Craft technology-enabled business solutions. Think through how best to manage technology and IT assets. Bring technology innovation and products to market. Mobilize quickly to make an important business decision, or exploit a significant market opportunity or discontinuity. Gartner s unrivaled objectivity and credibility is perhaps your greatest assurance. At a time when alliances between major consultancies and IT vendors have clouded the landscape, Gartner remains resolutely independent. We have no incentive to recommend specific technologies and we do not do product implementation. Our only allegiance is to help you achieve the results you want with the best possible solution. Founded in 1985, Gartner Consulting has presence in 55 offices worldwide, with global headquarters offices in Buenos Aires, Argentina; Egham, United Kingdom; Stamford, Connecticut; Sydney, Australia; and Tokyo, Japan. Our more than 600 consultants are experienced practitioners who bring business process and technology experience, proven methodologies, and project and people management skills to every engagement.