The use of function points as part of a comprehensive baseline performance measurement initiative demonstrates the versatility and many uses of function points. Specifically, function points permit an organization to compare internal performance levels in a more consistent fashion. In addition, the use of function points allows for a wide range of comparison opportunities outside the organization. An ever-increasing amount of industry performance data uses function points as the base measure. An organization that can express its productivity in terms of function points can compare those performance values with industry-related benchmarks and determine the relative position of its performance. In addition, some industry data goes a step further in that it can identify and quantify best-practice performance levels.
When function points are incorporated into the service-level metrics for an application development outsourcing arrangement, their value to the organization increases. They have often been described as the currency or unit of work that is at the core of the service-level metrics. Once again, we can see the dual role that function points can play in servicing both the IT organization and the business community. In the case of outsourcing, the business is paying for functionality delivered. That functionality can be quantified best by the function point metric.