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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
© 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.
© Copyright Software Engineering Competence Center 2015
Every device will have a copy of our software…
THE DREAM OF EVERY COMPANY…
© Copyright Software Engineering Competence Center 2015
LOCAL MARKET REALITY…
You have only 5 hours to give us a brief …enough?
© Copyright Software Engineering Competence Center 2015
THE “ZOOM-IN” EFFECT…
Do you remember the past “7-LEAN” years?
© Copyright Software Engineering Competence Center 2015
IT outsourcing pie expands
Why do not you eat ???!!!
INTERNATIONAL MARKET PIE…
© Copyright Software Engineering Competence Center 2015
The opportunity is going consistently bigger
Major areas: IO, BPO then AO
THE MONOTONIC INCREASING PIE SIZE…
© Copyright Software Engineering Competence Center 2015
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
© Copyright Software Engineering Competence Center 2015
What do you think?
AN ISSUE OF READINESS…
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
Act differently but, take care…!!!
YOU NEED TO ACT DIFFERENTLY…
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
What do you think?
IS THERE A SOLUTION…??!!
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
THERE IS A SOLUTION…
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
But, don’t reinvent the wheel…
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
MARKET DYNAMICS…
Buying & Selling Forces 2011 (GDP per Capita)… (URL: http://www.economicshelp.org/blog/343/economics/gdp-per-capita-statistics/)
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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?
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
EGYPT ATTRACTIVENESS INDEX
A.T. Kearney Global Services Location Index™ 2014 (Source: http://www.atkearney.com/research-studies)
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
WHY EGYPT?
Business Drivers Behind IT Outsourcing Decisions (URL: http://www.horsesforsources.com/outsourcing-in-2013_01213)
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
WHERE ARE WE TODAY?
Willcocks et al., “Beyond BRIC, Offshoring in non-BRIC countries: Egypt – a new growth market,” An LSE Outsourcing Unit report, 2009
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
CURRENT METHODOLOGIES IMAGE…
Willcocks et al., “Beyond BRIC, Offshoring in non-BRIC countries: Egypt – a new growth market,” An LSE Outsourcing Unit report, 2009
Competencies Gap in Egypt. Can we close it?
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
PAIN AREAS SUMMARY…
The three important “Failure Attributes”
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
Low Quality Undependable No Trust
© Copyright Software Engineering Competence Center 2015
SOLUTIONS DOMAIN SUMMARY…
The three important “Success Attributes”
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
Quality
Trust
Dependability
© Copyright Software Engineering Competence Center 2015
The “Magic” of Synergy…
SUGGESTED SOLUTION(S)…
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
TSP
• SEI-TSP/PSP
DA
•Disciplined Agility
CMMI •CMMI
Accreditation
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
Agile
CMMI-DEV Lean
Six
Sigma
© Copyright Software Engineering Competence Center 2015
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%
Pre TSP/PSP With TSP/PSP
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
Pre TSP/PSP With TSP/PSP
Post-Release Defects/KLOC - Range
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Pre TSP/PSP With TSP/PSP
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
In Egypt, we achieved: -1 Day variance in 6m - 3 Def/Release
Quality
© Copyright Software Engineering Competence Center 2015
Quality MUST be designed, not found…
QUALITY DYNAMICS…
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
Trust
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
Trust
© Copyright Software Engineering Competence Center 2015
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)
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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/)
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
Unbeatable highly qualified human resource pool
© Copyright Software Engineering Competence Center 2015
MICRO (PERSONAL) COMPETENCIES-1
Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP Needs,” Presentation in TSP Symposium 2008.
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
MICRO (PERSONAL) COMPETENCIES-2
Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP Needs,” Presentation in TSP Symposium 2008.
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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)
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
Use the power of SEI-CMU e-Learning System…
THE POWER OF CMU…
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
SECC subsidizes the training cost by 95%
ELITE TRAINING IS SUBSIDIZED…
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
SECC manages the international LinkedIn's TSP professional network
INTERNATIONAL NETWORK
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
QUESTIONS?...
Need to Change 1 What to
Change 2 Effective Change 3 How to
Change 4 Why SECC 5
© Copyright Software Engineering Competence Center 2015
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.
© Copyright Software Engineering Competence Center 2015