Explore solutions by selecting your industry

Industries

SoftCoster (Numetrics)

McKinsey’s Solution for Optimizing Software Procurement by Analyzing Performance and Productivity for Software R&D

SoftCoster(Numetrics)

McKinsey’s Solution for Optimizing Software Procurement by Analyzing Performance and Productivity for Software R&D

What it is

SoftCoster(Numetrics) is McKinsey’s analytical solution to support software procurement optimization by utilizing 400 companies and 14,000 project data

Calculates should-cost

Builds a fact base​ and calculates what a product or service 'should-cost', assuming an efficient development process & team

Simulates trade-offs between resource/ schedule/ cost

Estimates the required resource, time, and cost​ based on requirements and constraints, enabling scenario simulations with trade offs

Benchmarks against competitors

Leverages industry data to assess competitiveness​ of supplier cost & productivity vs industry peer teams doing similar work

SoftCoster(Numetrics) is a powerful tool to support procurement optimization for:

  • Application development and maintenance
  • Embedded SW development
  • Integration or configuration of 3rd-party package SW (e.g., SAP, salesforce, etc.)

SoftCoster(Numetrics) provides a rational and solid foundation for negotiations and cost improvement

Why use it

Software cost reduction

10–30%

cost reduction, while de-risking development and improving quality

Additional impacts

5–10%

time-to-market

60–90%

schedule slip reduction

20–40%

development capacity

How it works

SoftCoster(Numetrics) follows 4 steps to derive granular analytical output

Project size is estimated by calculating design/ development complexity based on complexity ofrequirements, architecture, coding, test and platform/ hardware

What the output looks like

Comparing supplier cost to the should cost can identify the size of savings

Click thumbnail to expand

Design complexity reduction simulation (e.g. modularity , code re-use) can provide potential impact

Click thumbnail to expand

Benchmarking team size against same level of complexity’s project identifies the oversized team projects

Click thumbnails to expand

Analyzing resource allocation for development phase reveals the opportunity to improve productivity across entire project

Click thumbnail to expand

Staffing analysis exposes differences in ramp-up and ramp-down

Click thumbnail to expand

Schedule Slip measures the delay launching new projects vs. the original plan

Click thumbnails to expand

Here are some client examples

Large scale digitization of government services

Click thumbnails to expand

German automotive OEM procuring infotainment system

Click thumbnails to expand

North American automotive OEM procuring ECU SW updates

Click thumbnails to expand

Global electronics manufacturer procuring IT projects

Click thumbnails to expand

IT System Integration and Software engineering service provider procuring development service

Click thumbnails to expand

By working with us, you will have access to

Experts

Our industry and functional experts will be on the ground where and when you need them.

Helpdesk

Our helpdesk will keep doors open and commit to addressing your concerns efficiently and effectively.

Training

We offer coaching and build capabilities for your teams to deliver sustained improvements.

Implementation

We partner with you and co-create a firm path to implementation as part of the project.

Connect with us to find out more

© 1996-2024 McKinsey & Company