Scorecard and KPIs for monitoring software factories effectiveness in the financial sector

Financial corporations and especially banking institutions have important needs concerning to the development of software around their business core. The software, that traditionally had been developed in house by the IT departments, is now usually outsourced to IT firms. These firms work under the software factories model. An important feature within this sector is that usually the financial groups keep the ownership of these firms because the strategic value of the software for the core business. These firms work almost exclusively for the owner financial group developing their software, but they have to demonstrate that they are so profitable and competitive like any other firm. The organizational structure of these firms has some differential features. Top level tasks (software design and project management) are usually performed by the IT firm but the development is usually subcontracted to other software companies. Although financial corporations have always paid a special interest to investing in management and organizational policies to improve their efficiency, there have being always an important lack regarding to the control and monitoring of the software projects. They do not have suitable tools for monitoring actual process effectiveness. Adapting scorecards to this environment could be a useful tool for monitoring and improvement the process. Scorecard could here be used both as a tool for internal effectiveness measurement as well as externally, presenting sustainabilityindicators for the shareholders, the financial institutions. This paper aims to identify and define a collection of Key Performance Indicators which permit effectiveness to be improved under this context, focusing in the specific supplychain model given by owner (financial group), software factory and software developers (subcontracted).