How to Save on Software Development Costs with Jellyfish Benchmarks

Jellyfish's benchmarking dashboard lets you compare contractor agencies against each other, your full-time staff, and industry averages using nine standardized metrics: coding days, commit rates, issue cycle time, and more. One organization identified underperforming agencies by low commit rates and long onboarding, then reallocated budget to better partners and cut costs.
Chapters
I can imagine that we've all had contracting agencies call us up on LinkedIn or ping us on LinkedIn and say, "Hey, do you need help with X?" And we go, "Yes, we do." And then we get on a call with them and start explaining what they do and how it's modeled, and you always get that comment, "We're better. We perform— outperform better," or "We have better talent," or "We have a better process." But how can we really measure that? And that's one thing I always got frustrated with that was, you know, how can— you know, everybody says it. You won't talk to a contracting agency that doesn't say, "I'm the best one," right? So what does that really mean, and how can we measure that? And so if we had a view that did a couple things, one, could we actually see the performance of one contracting agency compared to another? Or could we see the performance across multiple metrics in terms of our full-time associates who are on the team, and let's say it's a staff augmentation, And how are those contractors doing with the full-time associates? And so these are some great views that we can start to see, and we can actually start to adjust strategies quickly. You know, I personally have— it's actually the next slide, Malama, thank you. I personally have a handful of contractors that we use. We're a global company. We have engineering all across the world. And so, you know, I have a— we have a handful of different agencies in different regions. And what's important is how do we understand which ones are performing? Now, there's again a multitude of reasons why different metrics may be the way they are. But what's nice is here is quite literally a view across different— contracting agencies that we've used. And what's great about this is not only can we bump this up against our existing team, we can also bump this up against the industry, and we can see how these metrics play out together. And, you know, let's say take coding days. I think Juan was talking about coding days. You know, 1.6 versus 1.7 coding days, that's probably not a— you know, it's not an insurmountable difference and maybe a rounding error when it comes to, you know, a handful of associates. But if you have one agency who's working at 0.6 with low commit rates, low additions, low issue cycle time, and low PR merge compared to one that's just knocking it out of the park in metrics across the board, It causes question, you know, and I had exactly this. There was an agency that we had, and we actually had more agencies, and quite frankly, this— I was looking across this and said, you know what, this probably doesn't make sense for us to keep investing in this agency. I would rather want to invest in this other agency over here, because they are truly outperforming. Performing, and we can see this as a unified measuring stick across the board. And so, you know, playing these levers, whether it is reducing spend, which can be direct savings, or adjusting spend to increase productivity, inferred savings, can greatly impact the overall— our overall budgets as we're talking about how we're going to approach problems. In the market with the budgets that we have. Another great example that we talked through, or that I had here, was I had an agency that came to me and said, hey, you know what? We're really good, and we get up to speed quickly. And so it was like, well, okay, great. What does that mean? Like, you know, what does I get up to speed faster? Our onboarding time is quicker. What does that really mean? You know, can we expect code coming out the door with, you know, fewer weeks? Can we expect higher velocity of tickets being done in fewer weeks? This actually allowed us to actually measure this and have those conversations with those agencies who said, hey, no, we can do this. Well, it maybe did happen or maybe didn't happen, and if it didn't happen, that can be a cause for conversation. To say, you know what, we got to connect here because we were sold a promise and we want to make sure that we're getting through on that promise. And so it's really opened up our ability to look across agencies and say, you know what, we can have a fairly regular measuring stick across the board and see how that performance is looking. Whether it's performance based off productivity, quality, collaboration, process, speed, or alignment, all of the metrics that Alon walked through as he was talking across each of those outcomes, we can use each of those metrics within Jellyfish to actually look at how that is actually happening. Now, not all agencies are the same, of course, right? We have some agencies, Contract C, for example, right there is— is very focused on our support side. I don't expect a whole lot of coding to be coming out. So that it's a, it's a, it's a difference that, you know, you want to look at with context. But it really has allowed us to first and foremost look at who are rock stars that we want to keep partnering with and keep working with and keep investing with to ultimately get the outcomes that we're trying to deliver.
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