Benchmarking is necessary for an organization to improve its performance. Results from benchmarking benefit all stakeholders (such as customers, shareholders, employees, and environment) who can measure benefits in quantitative terms such as customer through faster delivery of projects, shareholders through returns on their investment, employees through increase in their salary, and environment through investment in social projects. Out of many parameters that can be used to measure improvement in performance, productivity, and defect density are primarily measured in every organization. These two measures are also used for setting aggressive goals for year on year improvement and reap further benefits. In this research work, productivity and defect density have been studied in detail and in order to improve their values further, factors affecting these two parameters have been studied in detail. Conclusions made from these studies are presented here.