Productivity measurement and improvement is an important activity in most industries, often crucial for their survival.
It is very important for organizations to benchmark their productivity against industry peers. However, organizations engaging in application development usually don’t objectively measure productivity. They are not able to demonstrate their productivity and they are not able to understand their capabilities against industry peers.
Customer organizations often don’t know it is possible to measure supplier productivity. They can actually use productivity in their supplier selection process. They outsource Application Development based on rate, time and material, completely ignoring the concept of productivity.
Why is productivity measurement so important in all industries, but not in the software development industry?
The answer is: it’s hard to measure… or at least it is perceived to be hard.