Research Reveals Concerns About Impact Of Outsourcing On R&D Overblown; Resource Optimization Top Issue Facing R&D In 2006

Project and Portfolio Management Shown to be Most Effective Solution For Managing New Product Development.

ISLANDIA, N.Y., February 6, 2006 – CA (NYSE: CA) today revealed surprising key findings from its research study on trends and outlooks for new product development. These findings include:

* Concerns about the impact of outsourcing on R&D are overblown.
* Resource optimization is the most pressing challenge facing R&D organizations.
* Project and portfolio management (PPM) is the most widely used and the most successful technology solution for managing new product development processes.

“Our research again underscores the fact that people are the most important asset in any critical development initiative,” said David Hurwitz, vice president of marketing, Business Service Optimization (BSO) at CA. “By addressing resource allocation challenges, companies can achieve significant competitive advantages and improve their bottom-line business performance.”

Outsourcing Concerns Overblown

The survey revealed that, despite the market attention paid to outsourcing, it is not the top trend impacting R&D. Almost 60 percent of respondents said that globalization and outsourcing has little or no impact on their product development success. Two other trends cited as much more significant are customer involvement in R&D (cited by 70 percent of respondents as a major or significant trend) and the continued pressure to reduce costs (cited by 60 percent of respondents).

“If you are properly managing your resources, it doesn’t matter if they are outsourced or distributed all across the globe. The key to meeting customer demand and driving innovation is the ability to quickly identify and deploy the right people at the right time, regardless of location,” said Mike Pritts, vice president of development at Misys Healthcare, a long-time CA Clarity customer.

Resource Optimization Key to R&D Success

Of all the challenges companies face, more than 85 percent of respondents cited finding available resources from within their organizations as the most significant R&D issue. While companies may have sufficient R&D staff, they struggle with the ability to identify, deploy and optimize those resources. Resource optimization is also a strong contributor to other top development issues cited in the survey, including:

* Difficulty in estimating, planning and delivering development projects (81 percent)
* Commitment to aggressive or unrealistic milestones (80 percent)
* Allocation of enough time in the workday to be innovative (78 percent).

“Excellence in R&D requires a focus on people,” said Gisela Wilson, director, product life-cycle management solutions at IDC. “R&D organizations with strong resource optimization and capacity planning capabilities are best able to accelerate time to market and gain competitive advantage as a result.”

PPM Solutions Gaining Traction

According to the survey, while many technology solutions have helped companies improve R&D processes, project and portfolio management solutions have been the most widely used. The top technologies cited were:

* Project and portfolio management (69 percent)
* Document management (48 percent)
* Product lifecycle management (44 percent)

Of these three technologies, PPM implementations were by far cited by the most respondents as successful:

* Project and portfolio management (67 percent)
* Product lifecycle management (35 percent)
* Document management (20 percent)

Survey Methodology

CA’s survey on trends and outlooks for new product development questioned more than 100 R&D leaders from around the globe about overall trends in R&D, key development issues, and technology initiatives. The survey respondents covered a range of industries including high technology, software, life sciences and industrial manufacturing. Companies of all sizes were represented among the survey participants, with almost 40 percent representing organizations with more than 5,000 employees.

For a full copy of this in-depth report, please visit http://myclarity.com/go/npd.

About Clarity

CA Clarity for New Product Development helps companies foster innovation and accelerate time to market by providing unprecedented visibility and insight into their people. The Clarity system features seamlessly integrated portfolio analysis, idea management, resource capacity planning, and program management. More than 450,000 users at 450 companies such as Access Group, Armstrong World Industries, Autobytel Inc., Baker Hughes, Misys Healthcare Systems, MSC.Software, United Online and Vivendi Universal Games depend on Clarity to streamline their innovation lifecycle and to govern IT. The Clarity Division (formerly Niku) is part of CA’s Business Service Optimization (BSO) unit, which offers leading systems for service, asset and change management and provides a comprehensive framework for delivery of world-class IT services. For more information, please visit http://ca.com/clarity.

About CA

CA (NYSE: CA), one of the world’s largest information technology (IT) management software companies, unifies and simplifies the management of enterprise-wide IT. Founded in 1976, CA is headquartered in Islandia, N.Y., and serves customers in more than 140 countries. For more information, please visit http://ca.com.

###

Copyright © 2006 CA. All Rights Reserved. One CA Plaza, Islandia, N.Y. 11749. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

Contact Information

Rita O’Brien

CA

Contact via E-mail