Vendor Management

Quality Measures for Outsourced IT

For outsourced software delivery, it is a best practice to specify software quality requirements in the vendor’s agreement and to perform due diligence by reviewing technical deliverables at regular intervals during development and maintenance. A contract or service level agreement (SLA) may also contain incentives for incrementally improving code quality over time.

The CISQ code quality standards for SecurityReliabilityPerformance Efficiency and Maintainability are strong indicators of the level of risk in system architecture, design and code. Use of the standards with vendors will help your organization focus on software quality measurement earlier in the software development lifecycle to reduce risk and cost. The benefit of having a standard is a common goal for you and your partners to work towards.

Technical deliverables can be reviewed at regular intervals during development, build, maintenance and acquisition. Activities include:

  • Measuring the quality and quantity of software delivered
  • Analyzing the root cause of risk and prioritizing corrective actions
  • Monitoring application/product quality and improving goals over time
  • Allocating team resources appropriately

Example Portfolio Analysis: Summary Results for a 3-Month Period

Assets under management
Vendor Number of Applications Volume (AFP) Portfolio Percentage % Δ (AEP) Security Reliability Performance Efficiency Maintainability
1 23 110,000 34% 15% 2.77 (+2%) 3.05 (+3%) 2.80 (+1%) 3.02 (+2%)
2 10 45,000 14% 9% 2.78 (+.08%) 2.81 (+.05%) 3.02 (-.02%) 2.86 (-.04%)
3 7 30,000 9% 6% 3.05 (+1.5%) 3.03 (-1%) 3.00 (+.08%) 2.91 (-.05%)
4 29 140,000 43% 4% 2.99 (-2%) 2.97 (-5%) 3.03 (+1%) 3.05 (+2%)