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Bijoy Ghosh

Reality check for small-sized companies.

Ashok Sontakke

The Software Engineering Institute (SEI) recently limited the validity of CMMI certification appraisals to a maximum of three years. The Standard CMMI Appraisal Method for Process Improvement (SCAMPI - V1.1) ended on August 25. As a result, companies that underwent appraisals in 2004 and 2005 will have to reappraise in 2007-08. There are about 1,100 such companies worldwide, of which 40 per cent are in for Level 4 and Level 5 (High Maturity) appraisals.

In terms of the financial impact for high-maturity appraisals, the total value of business would be about $40,000-50,000 per certification, in addition to the internal resources required, preparation time, man hours and so on.

With only 58 HMLA (high maturity lead assessors) globally, and 13 in India, chances are companies will find it difficult to meet the deadline. India has the maximum number of level 4 and 5 certified companies. Companies may not retain the high-maturity status if the practices set out by SEI are not implemented. This could adversely affect both the company image and business in the international market. CMMI certification is a prerequisite for many tenders in Government, banking and other sectors and hence the potential impact on business.

The SEI has said in its presentations last year that many high-maturity appraisals (level 4 and 5) have been performed in the past by lead appraisers with no understanding of the requirements.

The following steps are under way:

■ SEI “Quality Manager” has a special focus on the quality of the appraisals.

■ SEI has a process to certify appraisers, beginning October 2006.

■ SEI recently introduced training on ‘understanding high maturity concepts’.

■ SEI will soon introduce training on ‘conducting high-maturity appraisals’.

■ SEI will conduct examination for high-maturity lead appraisers beginning October this year.

■ From August 2006, SEI has introduced a three-year validity for appraisals which means records for appraisals made before August 2004 will not be maintained by SEI (in effect, these certifications will be void).

India has the highest number of high-maturity organisations in the world and hence the impact will be greater here. Many business proposals/tenders, nationally and internationally, have a better chance to succeed if the organisation has high-maturity qualifications.

Indian IT companies were among the early adopters of the CMMI certification, which gave them a global edge over IT companies in other countries. Small-size companies will have difficulty in qualifying for high-maturity requirements due to the type of work they do and the amount of data they have. As smaller companies have limited experience in executing large projects they have less statistical data — a necessity now for higher-maturity certification. A slower maturity rating may result in the companies losing out on business.

Of the nearly 1,600 companies certified by SEI in 2006, 177 are Indian companies. The US, with about 600, was the only country with more certified companies. Medium-size companies have a better chance. But going from level 3 to 4 in less than two years will create its own set of problems. The planned appraisals may get delayed if the companies have not implemented practices as expected by SEI. And the consultants advising these companies for higher levels do not understand higher maturity, as they do not have precise information on the SEI requirements.

Large-size organisations may find all development centres appraised at level 5, which calls for significant performance improvements to support business needs. It should be noted that CMMI certification is given for the specific development centre or project and not for the organisation. This will again compound the problem of shortage of HMLAs.

The author is Vice-President, Quality and Processes, and Head CMMI Consulting Practice at Nihilent Technologies.

As told to R. Savitha

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