The IT outsourcing pie is getting better around the world during the past years. However, in outsourcing business, there are many critical internal success factors that can determine to what extend any organization can succeed and grow. The most important factors are: quality, dependability and trust. This presentation explains how “Disciplined Agility” can improve the quality, make the delivery process a dependable one and then build a great long term trust.

1. 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

2. © Copyright Software Engineering Competence Center 2015
THE SPEAKER…
Ahmed S. Elsheikh,
Senior Quality Consultant, SECC
aselshikh@itida.gov.eg
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.

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 Every device will have a copy of our software…
THE DREAM OF EVERY COMPANY…

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LOCAL MARKET REALITY…
 You have only 5 hours to give us a brief …enough?

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THE “ZOOM-IN” EFFECT…
 Do you remember the past “7-LEAN” years? 

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 IT outsourcing pie expands
 Why do not you eat ???!!!
INTERNATIONAL MARKET PIE…

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 The opportunity is going consistently bigger
 Major areas: IO, BPO then AO
THE MONOTONIC INCREASING PIE SIZE…

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 Where is the problem?...Do you need to change?
THE PIE IS REALLY BIG. TRUST ME…
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Protiviti: Companies highly exposed to outsourcing risks
(Source: http://www.consultancy.uk/news/)
IT Outsourcing Pie After
Adding Professional
Services

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 What do you think?
AN ISSUE OF READINESS…
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 Act differently but, take care…!!!
YOU NEED TO ACT DIFFERENTLY…
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11. © 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
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 What do you think?
IS THERE A SOLUTION…??!!
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THERE IS A SOLUTION…
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 But, don’t reinvent the wheel…

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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
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MARKET DYNAMICS…
Buying & Selling Forces 2011 (GDP per Capita)…
(URL: http://www.economicshelp.org/blog/343/economics/gdp-per-capita-statistics/)
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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?
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EGYPT ATTRACTIVENESS INDEX
A.T. Kearney Global Services Location Index™ 2014
(Source: http://www.atkearney.com/research-studies)
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WHY EGYPT?
Business Drivers Behind IT Outsourcing Decisions
(URL: http://www.horsesforsources.com/outsourcing-in-2013_01213)
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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
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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?
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PAIN AREAS SUMMARY…
 The three important “Failure Attributes”
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Low Quality Undependable No Trust

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SOLUTIONS DOMAIN SUMMARY…
 The three important “Success Attributes”
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Quality
Trust
Dependability

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 The “Magic” of Synergy…
SUGGESTED SOLUTION(S)…
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TSP
•SEI-TSP/PSP
DA
•Disciplined
Agility
CMMI
•CMMI
Accreditation

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 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
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Agile
CMMI-DEV Lean
Six
Sigma

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

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 Quality MUST be designed, not found…
QUALITY DYNAMICS…
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 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
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Trust

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 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
01/88
01/89
01/90
01/91
01/92
01/93
01/94
01/95
01/96
01/97
01/98
Date of Project Start
%Deviation
Individual Data Points Mean Upper Natural Process Limit
Lower Natural Process Limit One Standard Deviation
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Trust

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 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)
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 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/)
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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
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 Unbeatable highly qualified human resource pool

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MICRO (PERSONAL) COMPETENCIES-1
Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP
Needs,” Presentation in TSP Symposium 2008.
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MICRO (PERSONAL) COMPETENCIES-2
Rafael Salazar,” Preparing Undergraduate Students for Industry’s TSP
Needs,” Presentation in TSP Symposium 2008.
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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)
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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
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 Use the power of SEI-CMU e-Learning System…
THE POWER OF CMU…
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 SECC subsidizes the training cost by 95%
ELITE TRAINING IS SUBSIDIZED…
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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
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 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
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 SECC manages the international LinkedIn's TSP professional network
INTERNATIONAL NETWORK
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QUESTIONS?...
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42. © Copyright Software Engineering Competence Center 2015
THE SPEAKER…
Ahmed S. Elsheikh,
Senior Quality Consultant, SECC
aselshikh@itida.gov.eg
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.

43. © Copyright Software Engineering Competence Center 2015