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PASSAGE 43 Will Quality Eat up the U.S. Lead in Software? If U.S. software companies dont pay more attention to quality, they could kiss their business good-bye. Both India and Brazil are developing a world-class software industry. Their weapon is quality and one of their jobs is to attract the top U.S. quality specialists whose voices are not listened to in their country. Already, of the worlds 12 software houses that have earned the highest rating in the world, seven are in India. Thats largely because they have used new methodologies rejected by American software specialists. For example, for decades, quality specialists, W. Edwards Deming and J. M. Juran had urged U.S. software companies to change their attitudes to quality. But their quality call mainly fell on deaf ears in the U.S. -but not in Japan. By the 1970s and 1980s, Japan was grabbing market share with better, cheaper products. They used Demings and Jurans ideas to bring down the cost of good quality to as little as 5% of total production costs. In U.S. factories, the cost of quality then was 10 times as high: 50%. In software, it still is. Watts S. Humphrey spent 27 years at IBM heading up software production and then quality assurance. But his advice was seldom paid attention to. He retired from IBM in 1986. In 1987, he worked out a system for assessing and improving software quality. It has proved its value time and again. For example, in 1990 the cost of quality at Raytheon Electronics Systems was almost 60% of total software production costs. It fell to 15% in 1996 and has since further dropped to below 10%. | 
