Global IT Industry Productivity Is Worse Now Than It Was 20 Years Ago

August 19, 2011. A new report from the ISBSG shows that when it comes to productivity and speed of delivery, the news looks bad for the IT Software industry. The Software Industry Performance (SIP) report is based on research performed by the ISBSG using data submitted globally to its Development & Enhancement repository of close to 6,000 software projects. Results show that from 1989 to 2009, software development productivity dropped by 66%.

“Periodically the Software Industry needs to take time out for a reality check,” said Peter Hill, CEO, ISBSG. “The Software Industry Performance (SIP) Report from the ISBSG is the reality check – the good news and the bad from the last 20 years”.

The SIP report shows speed of delivery has decreased. In the early 1990s a software developer was delivering ten functional units of software per month. By 2008 this figure had dropped to four functional units per month.

But it’s not all bad news according to the ISBSG SIP report. Software quality, as well as the ability to estimate accurately and deliver on time, has improved. Analysis shows from almost zero use of formal software quality assurance (SQA) at the start of the 1990s, close to 80% of projects include SQA by 2008. In terms of On Time Delivery, more projects are being delivered close to the estimated duration than was the case fifteen years ago. And more projects are now being delivered close to their estimated effort (and therefore cost) than was the case fifteen years ago.

‘The Software Industry Performance (SIP) report is an excellent study with valuable and thought-provoking results”, says Capers Jones, Chief Scientist Emeritus of Software Productivity Research (SPR). “I will certainly recommend the SIP report to my clients and colleagues”.