The Outsourcing Pie is Getting Bigger, Are you Ready

Software Engineering Competence Center

THE OUTSOURCING PIE IS GETTING BIGGER. Are You Ready?

March 18, 2015 © Copyright Software Engineering Competence Center 2011

Ahmed S. Elsheikh Senior Quality Consultant, SECC Disciplined Agility & SEI-TSP/PSP Services Owner https://www.linkedin.com/in/aselshikh

https://www.linkedin.com/in/aselshikh

https://www.linkedin.com/in/aselshikh

© Copyright Software Engineering Competence Center 2015

THE SPEAKER…

Ahmed S. Elsheikh, Senior Quality Consultant, SECC [email protected] I help individuals and organizations, in Egypt & Gulf, enhance their capabilities and achieve higher performance levels. I have more than fifteen years of experience in Software/IT industry. I provide Consultancy, Training and Assessment services using many technologies such as Disciplined Agility, CMMI, SEI-TSP/PSP , COBIT 5, ITIL, Lean Six Sigma & TQM.

http://www.secc.gov.eg/Bios/Ahmed _El-Shikh_ Bio.pdf



Every device will have a copy of our software…

THE DREAM OF EVERY COMPANY…


LOCAL MARKET REALITY…

You have only 5 hours to give us a brief …enough?


THE “ZOOM-IN” EFFECT…

Do you remember the past “7-LEAN” years?


IT outsourcing pie expands

Why do not you eat ???!!!

INTERNATIONAL MARKET PIE…


The opportunity is going consistently bigger

Major areas: IO, BPO then AO

THE MONOTONIC INCREASING PIE SIZE…


Where is the problem?...Do you need to change?

THE PIE IS REALLY BIG. TRUST ME…

Need to Change 1 What to

Change 2 Effective Change 3 How to

Change 4 Why SECC 5

Protiviti: Companies highly exposed to outsourcing risks (Source: http://www.consultancy.uk/news/)

IT Outsourcing Pie After Adding Professional

Services


What do you think?

AN ISSUE OF READINESS…



Change 4 Why SECC 5


Act differently but, take care…!!!

YOU NEED TO ACT DIFFERENTLY…



Change 4 Why SECC 5


Wrong goals derive wrong behavior

You have to avoid wrong goals…otherwise

Instead of opening new markets

….You may go out of the local one

WHAT WILL YOU DO?

Source: www.dilbert.com



Change 4 Why SECC 5


What do you think?

IS THERE A SOLUTION…??!!



Change 4 Why SECC 5


THERE IS A SOLUTION…



Change 4 Why SECC 5

But, don’t reinvent the wheel…


LEARN FROM OTHERS’ FAILURE…

Barry Dwolatzky, “South Africa's proposed TSP Pilot Program”, JCSE at Wits University, 2009. Based on: Standish Group Report

The results of 50,000 projects, which: From all over the world

Conducted in 10 Years

Have different sizes

With different technologies

Technology Changes

But… Same Results...!!!

So, you need to change the methodology

Success rate had not changed that much



Change 4 Why SECC 5


MARKET DYNAMICS…

Buying & Selling Forces 2011 (GDP per Capita)… (URL: http://www.economicshelp.org/blog/343/economics/gdp-per-capita-statistics/)



Change 4 Why SECC 5


THE SEVERE COMPETITION…

Willcocks et al., “Beyond BRIC, Offshoring in non-BRIC countries: Egypt – a new growth market,” An LSE Outsourcing Unit report, 2009

Beyond BRIC Many Suppliers

Severe Competition

What about Egypt?



Change 4 Why SECC 5


EGYPT ATTRACTIVENESS INDEX

A.T. Kearney Global Services Location Index™ 2014 (Source: http://www.atkearney.com/research-studies)



Change 4 Why SECC 5


WHY EGYPT?

Business Drivers Behind IT Outsourcing Decisions (URL: http://www.horsesforsources.com/outsourcing-in-2013_01213)



Change 4 Why SECC 5


WHERE ARE WE TODAY?


Competitive positioning of Egypt Labor scalability

Linguistic skills

Cultural fit

Near shoring

University links

Call centers

However Egypt isn’t yet a center for SW development work



Change 4 Why SECC 5


CURRENT METHODOLOGIES IMAGE…


Competencies Gap in Egypt. Can we close it?



Change 4 Why SECC 5


PAIN AREAS SUMMARY…

The three important “Failure Attributes”



Change 4 Why SECC 5

Low Quality Undependable No Trust


SOLUTIONS DOMAIN SUMMARY…

The three important “Success Attributes”



Change 4 Why SECC 5

Quality

Trust

Dependability


The “Magic” of Synergy…

SUGGESTED SOLUTION(S)…



Change 4 Why SECC 5

TSP

• SEI-TSP/PSP

DA

•Disciplined Agility

CMMI •CMMI

Accreditation


Be Agile, Accelerate CMMI and much more…

TSP, DISCIPLINED AGILITY & CMMI…

Mike Phillips, “CMMI in Focus: CMMI with Agile, Lean, Six Sigma, and Everything Else,” news@sei, columns, January 2008

ISO

The “What”: Quality Principles

The “How”: Operational Methods

Improvements Techniques

PMI CMMI-DEV

CMMI-SVC

CMMI-ACQ

Agile

ITIL

Lean

Six

Sigma

Theory

of

Constrains



Change 4 Why SECC 5

Agile

CMMI-DEV Lean

Six

Sigma


Dependability

Accurately respond to your customers…

“QUALITY” & “DEPENDABILITY”…

D. R. McAndrews, “ The TSP: An Overview and Preliminary Results of Using Disciplined Practices", CMU/SEI-2000-TR-015, 2000

Average Schedule Deviation - Range

-20%

0%

20%

40%

60%

80%

100%

120%

140%

160%

Pre TSP/PSP With TSP/PSP

Average Effort Deviation - Range

-20%

0%

20%

40%

60%

80%

100%

120%


Defects/KLOC in Acceptance Test - Range

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9


Post-Release Defects/KLOC - Range

0

0.2

0.4

0.6

0.8

1

1.2

1.4




Change 4 Why SECC 5

In Egypt, we achieved: -1 Day variance in 6m - 3 Def/Release

Quality


Quality MUST be designed, not found…

QUALITY DYNAMICS…



Change 4 Why SECC 5


Unreachable levels of deliverables quality build trust

BUILD “UNACHIEVABLE” TRUST…1

Noopur Davis, Julia Mullaney , “The Team Software Process (TSP),in Practice: A Summary of Recent Results”, CMU/SEI-2003-TR-014, 2003

7.5

6.24

4.73

2.28

1.05

0.06

0

1

2

3

4

5

6

7

8

Level 1 Level 2 Level 3 Level 4 Level 5 TSP

Defects/KLOC



Change 4 Why SECC 5

Trust


Repeatability & low variation in delivery dates build trust

BUILD “UNACHIEVABLE” TRUST…2

D. R. McAndrews, “ The TSP: An Overview and Preliminary Results of Using Disciplined Practices", CMU/SEI-2000-TR-015, 2000

Schedule Deviation Individual Value Control Chart -

Commercial Systems

-150

-100

-50

0

50

100

150

200

250

300

350

01/8801/89

01/9001/91

01/9201/93

01/9401/95

01/9601/97

01/98

Date of Project Start

% D

ev

iati

on

Individual Data Points Mean Upper Natural Process Limit

Lower Natural Process Limit One Standard Deviation



Change 4 Why SECC 5

Trust


Highly qualified human resources

MEXICAN STRATEGIC POSITIONING…

Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP Needs,” Presentation in TSP Symposium 2008

PSP Trained

Students

(Prospect Employees)



Change 4 Why SECC 5


In Mexico, TSP/PSP is just after basic programing skills

MICRO COMPETENCIES PORTFOLIO…

Mexico First: Closing the training gap in the IT industry through public-private partnerships (Source: http://blogs.worldbank.org/)



Change 4 Why SECC 5


MEXICAN STRATEGIC KPI…

Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP Needs,” Presentation in TSP Symposium 2008

Planned Number of

TSP Teams in 2013



Change 4 Why SECC 5

Unbeatable highly qualified human resource pool


MICRO (PERSONAL) COMPETENCIES-1

Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP Needs,” Presentation in TSP Symposium 2008.



Change 4 Why SECC 5


MICRO (PERSONAL) COMPETENCIES-2

Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP Needs,” Presentation in TSP Symposium 2008.



Change 4 Why SECC 5


CMMI ACCELERATION WITH “DA”…

Based on: James McHale, "TSP: Operational CMMI," A presentation in Egypt SPIN Event “SEI TSP & CMMI Synergy” , October. 2007

Process Management

Project Management

Engineering Support

ML5 OPM CAR

ML4 OPP QPM

ML3 OPF

OPD

OT

IPM

RSKM

RD

TS VER

PI VAL

DAR

ML2 PP

PMC

SAM

REQM CM

PPQA

MA

Measurement Gap (Restructure/ Measure / Stabilize / Conclude)



Change 4 Why SECC 5


SEI-PRODUCT SUITE…

James Over, "Team Software Process ," An overview presentation, Software Engineering Institute, Carnegie Mellon University, 2010

Process Notebook

Process scripts

Forms

Guidelines and standards

Training and Textbooks

Executives

Project Managers

Engineering

TSP Coach

TSP Trainers

Tools

TSP Workbook

PSP Workbook

Coach/Trainer Workbook



Change 4 Why SECC 5


Use the power of SEI-CMU e-Learning System…

THE POWER OF CMU…



Change 4 Why SECC 5


SECC subsidizes the training cost by 95%

ELITE TRAINING IS SUBSIDIZED…



Change 4 Why SECC 5


FIXABLE ENGAGEMENT MODEL

CMMI Accreditation Through TSP (FC or T&E)

Achieve CMMI ML2 Achieve CMMI ML3

TSP Coaching Services (FC or T&E )

TSP Launch Workshop TSP Implementation Coaching

TSP/ PSP Training Track (FC)

TSP Executive Seminar

PSP Fundamentals PSP Advanced Leasing

Development Teams Introduction to PSP

1 to 2 Months

2 to 3 Months

12 to 15 Months

EP-1: Instructor Led Training

EP-2: Low Cost Entry (LE 4000)

FC= Fixed Cost T&E=Time & Effort



Change 4 Why SECC 5


SECC is:

SEI-TSP Partner

since 2006

SECC has trained :

300+ PSP Engineers

& Team Leader

SECC has coached:

20+ Projects

Egypt is within the top 10 club, and one of the early TSP/PSP adopters in the world

GLOBAL RECOGNITION

SEI Partner Network, "PSP Instructor/TSP Coach Annual Workshop ," Software Engineering Institute, Georgia, USA, September 2011



Change 4 Why SECC 5


SECC manages the international LinkedIn's TSP professional network

INTERNATIONAL NETWORK



Change 4 Why SECC 5


QUESTIONS?...



Change 4 Why SECC 5


THE SPEAKER…

Ahmed S. Elsheikh, Senior Quality Consultant, SECC [email protected] I helps individuals and organizations, in Egypt & Gulf, enhance their capabilities and achieve higher performance levels. I have more than fifteen years of experience in Software/IT industry. I provide Consultancy, Training and Assessment services using many technologies such as Disciplined Agility, CMMI, SEI-TSP/PSP , COBIT 5, ITIL, Lean Six Sigma & TQM.


