Software Outsourcing based on Results




The Function Point Analysis (FPA) allows management of Information and Technology (IT) resources through the introduction of a unit of product liable to be measured and audited from a business perspective and it still represents the results of the processes of systems development and maintenance.
By using the FPA measurement of contracts with software factories or consulting companies operating in these segments, it is possible to establish and control acquisition standard, service level agreements and assessment policies at the appropriate levels of the systems department. As a result, there is a tendency of these functions to reach:


  • Best cost -benefit contracts and a greater contribution to business profitability.
  • Greater transparency and understanding of the costs, benefits, strategies, policies and service levels.
  • Delivery of projects on time and budget according to quality requirements.

Many companies (especially banks) and governments from several countries use FPA as a methodology to measure the results delivered by projects from software development and maintenance contracts.


Function point analysis aims to facilitate the transition of the contracting model in which the price is determined, directly or indirectly, from an internal perspective of the production process to another in which the price is determined according to the expected terms for the users. It is also aligned with the purpose of system department models such as COBIT and maturity models as CMMI.

For more details, check the following description:



Reasons for using this service


Based on the experience supporting organizations in the implementation of the FPA in business since 1998, FATTO Software Consulting developed this service for outsourcing management software in an external perspective to the work with systems development and maintenance.


What makes this perspective possible is the measurement results represent that of the user's vision and the delivered features. -Unlike the perspective of the software factory and the technical components that support these features.

With our outsourcing process, your businesses manage the recruitment service to develop and maintain systems from policies regarding deadlines goals, quality and productivity defined in the highest levels of corporate governance. Latter, based on the operation of the contract which received the proper coaching to fulfill those goals.


Managing in an internal perspective of the production process is based on the appropriation of hours, direct estimates of effort or from the complexity of the modules, all about the dominance of recruitment. While, management in an external perspective is based on metrics on the user vision.


Software production and its internal perspective


Prices and demands of certain projects based on direct estimates of hours or derivation from number and complexity of modules are examples of internal perspective the production process.



That kind of approach:
A) Consumes a lot of energy trading
B) Does not allow Benchmarking
C) Complicate the answer, and
D) Requires that the client have the same or higher technical skills than those contracted to work best way


In practical terms, the number of hours in direct estimates and complexity of modules become irrelevant. In both cases, there is no measurement in contrast to the estimate due to the work not being based on customer's vision. In addition, both models are in the technical domain. Outsourcing software can estimate how many hours and modules would be required or necessary.


Software production and its external perspective- User Vision


Delivery based results on individual demand uses statistics to determine the medium price point function.
Such a kind of model introduces units of product, which represents the results received with a development project or improvement for its users, allowing objectively free liability risks:
a) Customer and to the scope stated in function points ;
b) outsourcing and related to the productivity and quality in hours, per dollar or defects per function points.




Making the transition easier from a business model with software factories or consulting perspectives based on an internal perspective of the technical development process to a new model. The new one is focus on measuring and compensation from the delivered functionality and approvals by users.




Creating conditions for measuring the software production on function points from the requirements that make that the solution works within required parameters by contract. Based on that, it is necessary to assign prices or efforts according to costing models ($ / FP or Hh / FP)




Function Points capture in qualitative terms the functional requirements of the solution (functioning in terms of different levels of information during its life cycle.


What are the Required Parameters?
- Attendance of Non-Functional Requirements
- Scope of work in terms of levels of service
- Quantity and Quality Tools




We bring to your businesses the control in outsourcing development services and maintenance of systems. As a result, there is a tendency to decrease costs of outsourcing and increase the quality of the delivery products and the budget set up.



The proposed transition has an impact on the following aspects of management:
Demand Price: Negotiation x Measurement
- Negotiation of unit price, quality and deadline goals under the contract management and implementation of them in the operation.
- Viability of scope of the estimates in preliminary moments, based on the functionality provided (or part of them) and project regardless of the proposed solution.
- Measurement of demands delivered to prevent contingencies or risks of levels of information between preliminary



Answers to estimations: Business activity X Implementation Function

The task division creates functions, while processes join them to reach business goals.


- The clients answer based on their vision of division task being addressed to proposed functions and their integration by processes towards business goals, and not based on technical features.
Performance Evaluation: Benchmarking x Subjective Evaluation

- The assessment of organizational performance and outsourcing process related to the market as the Gartner Group or International Software Benchmarking Standards Group ( ISBSG )
Productivity breakers:  Systematic Approach x Empirical

- Documentation of the identification, promotion of improvement initiatives and assessment of productivity breakers´s impact.


Method Used


To assist this transition process, FATTO Software Consulting methodology strengthens the best developed practices based on the main benchmarks:
- Measurement process area of CMMI
- Practical Software Measurement (PSM)
- Constructive Cost Model II
On the definition and planning stage in which opportunities are improved, the specialized consultants of our company design a powerful cooperation with your team to create a specific strategy with a work plan based on a summary to follow the methodology and observing the culture, values and features of your organization.