cei outsourcing offering

For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

CEI’s Outsourcing Offering


Agenda

• About CEI• CEI’s Practice Areas

– Microsoft– IBM

• Key Success Factors for Outsourcing• Outsourcing Case Study• Example Team Model and Pricing• Questions & Next Steps


About CEI

An Overview


CEI Fast Facts• IT Services Provider since 1992• $45+M revenues • 400+ employees• Clients nationwide

– Over 60% of the Fortune 50– Focus on PA, OH, Mid-Atlantic

• US based with offshore offices– PA, CA, IN, NY– Chennai, India

• Focus on Quality – 5

• Areas of Expertise

• Industry Recognition

http://www.bea.com/framework.jsp?CNT=homepage_main.jsp&FP=/content


Some of Our Clients

http://www.corning.com/index.aspx

http://www.hess.com/index2.aspx

http://www.pearson.com/index.shtml

http://www.ghi.com/default.aspx?Page=27

http://www.gatewayhealthplan.com/default.aspx

http://www.blackbox.com/index.aspx

http://www.motorola.com/

http://www.nationalacademies.org/

http://www.ncogroup.com/


CEI’s Microsoft Practice

• Microsoft Gold Certified Partner x4

• Application Lifecycle Management (ALM) Inner Circle

• SharePoint Deployment Planning Services partner


Delivery Options• Full lifecycle application development

– Mentoring– Support and maintenance– QuickStarts

• National delivery capabilities– Onsite– Remote Delivery

• Onshore, offshore and blended application development

• Core focus on .NET application development


Our Strengths (Go-to-Markets)• .NET Application Development• ALM

– Visual Studio Team System– Team Foundation Server

• Collaboration & Portal– Microsoft Office SharePoint Server (MOSS)– Windows SharePoint Services (WSS)

• Application Integration– BizTalk Server– SSIS

• Business Intelligence– SQL Reporting Services– SQL Analysis Services– PerformancePoint Server


Our People• Microsoft Practice Director – Mike Snell

– 15+ years of experience– Microsoft Regional Director (RD)– Published Author

• Visual Studio 2008 Unleashed

• Architect level resources– Multiple years experience delivering consulting– Certified MCAD, MCPD or MCSD– Trained in latest technologies– Experience on large complex projects

• PMI certified Project Management Professionals (PMP)


Our IBM / Java Practice• Java Practice Director – Saleem Mohammad

– 18+ years of experience• Architect level resources

– Multiple years experience delivering consulting– Certified Architects (J2EE, WebSphere, Solutions Developer)– Trained in latest technologies– Experience on large complex projects

• Deliver solutions on multiple platforms– Application development and support– Application integration– Application transformation– Portals / knowledge management– Electronic Commerce

http://www.bea.com/framework.jsp?CNT=homepage_main.jsp&FP=/content


CEI Solutions Team


Outsourcing Success Factors

Our Global Agile Delivery Model for Outsourcing


Our Development Practices• “US & European consulting

firms, such as Computer Enterprises Inc (CEI) … have been more successful in training their Indian employees to use techniques from Scrum and eXtreme Programming (XP).”

• “Agile consultants such as CEI…have all developed models for quantifying OE metrics, and they are working on customer satisfaction and business value metrics, too.”

• “Pittsburgh based CEI runs a slightly different model. …”


Outsourcing Benefits and Risks

• The benefits– Offers additional resource options– Lower total cost of development– High degree of tracking and management (transparency) – Provide insight, review, and demos as features develop– Responsive to change

• The risks– Complex communication channels– High turnover rates traditional for offshore engagements– Additional layers of technical and project management– Can be disruptive to your environment / culture– Major documentation and testing commitment


Key Success Factors: Communication

• Onshore management and escalation channel• Daily SCRUM meetings in morning EST• Weekly project team meeting• Weekly client meeting• Well-defined escalation procedures• Monthly steering committee meeting• All documents tracked on a common portal• Roadblocks, discussions tracked and resolved daily• All work done as part of a knock-out list


Key Success Factors: Communication

Steering Committee

Team SCRUM

Project Managemen

t

Monthly Oversight

Daily Issue Escalation

Issue Escalation

For all project stakeholders: Participation

Communication channels

Flow of information


Key Success Factors: Issue Escalation

Priority Example Escalation Steps

Critical An issue which can jeopardize the success of the project

The issue will be escalated to Executive Management immediately (VPs / CEO)

High An issue which may impact project schedule or cost

The issue will be escalated to the CEI PMO and the Account Manager

Medium An issue which has the possibility of impacting the project schedule or cost

The CEI project manager shall discuss the issue with the team and the client project manager and escalate the issue to the PMO as deemed necessary

Low An issue that does not impact project schedule or cost

The project manager shall resolve the issues or work with the client project manager as needed to resolve the issue


Key Success Factors: The Team Model

• Team needs to be aligned with customer goals– Often means travel to US / India at key points– Strong emphasis on business analysis and requirements

• Strong project management / oversight – Project management close to developers– SEPG audit on daily / weekly basis

• US management (near customer)– Assist with understanding needs and issues– Escalation procedures in place– Weekly meetings, monthly steering meetings

• Software architecture and technical leadership– 1 tech lead per 5-6 developers– Onsite during initial stages of the project


Key Success Factors: Documentation

Project Planning

• Communications Plan• Resource Plan• Project Process• Project Plan• Change Management Plan• Configuration Management

Plan• Test / Review Plan• Audit Plan

Project Management

• Status Report and Risk Analysis

• Billing Report• Updated Project Plan• PMO Report• Project Audit• Project Closure• Customer Satisfaction

Questionnaire


Key Success Factors: Sprint-Based Execution

• Combine agile tenants with traditional methods required by disconnected teams

• Feature sets build in parallel to provide faster turnaround• Once rolling, delivering feature sets every 30-days


Key Success Factors: Performance Management

• Track progress of project through metrics

• Provide weekly summary of schedule, issues, defects, requirements, billing, and more

• Report status and metrics at multiple levels


Key Success Factors: Quality• Testing

– Agreed-to set of test scenarios that define acceptance– Focused developer unit testing (build up regression test)– Combination of automated and manual tests in a test lab– Automated, repeatable build which just happens (daily)

• Development– Documented architecture and coding standards– Enforce coding standards automatically (at check-in) – Refactor code often (do not let it build up)

• Focused on demonstrations to validate status


Key Success Factors: Timeline & Budget

• Team refines requirements into a specification that can be estimated

• Team creates a estimation for the work. Estimation is communicated, reviewed, and approved

• Team creates work backlog and tracks against it• Estimate is managed on a daily (hourly) basis

– Planned vs. actual– Estimate to complete (knock-out)


Key Success Factors: Knock-out Tracking

Sprint 8 Backlog Graph

15191429

13491278

11951112

1027

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825738

644556

471

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Dates

To

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Sprint 8 Progress

Linear (Sprint 8 Progress)


Key Success Factors: Conclusions

• Delivering successful, reliable, distributed software services can be complex

• CEI’s process allows customers to focus on their business problem and remain somewhat isolated from these complexities

• Building a distributed team will provide many long-term benefits in terms of additional resource options and lower total development costs

• CEI is a US-based company with local resources that can provide escalation and support as needed


Outsourcing Case Study

A Global Developer of Computer Aided Dispatching Systems

for Railways


Case Study: Overview

• Previous attempts at outsourcing failed to realize the promised ROI

• Successful outsourcing was a key business initiative for 2008

• Legacy technologies and budget made it difficult to extend and retain an effective onsite development team


Case Study: Highlights• Mirrored client’s environment offshore• Worked with client to screen resources to ensure long-term fit• Trained team in client’s systems

– Created training guide for offshore team– Each team member had 5-7 days of system training

• Knowledge sharing, visibility, and issue resolution– Technical lead from client lead the offshore team to start– An onsite lead was assigned to the team– Held team review sessions to provide knowledge sharing– Developer issues resolved promptly (24-48 hours)

• Complexity of modules assigned to team was gradually increased• Captured metrics used to evaluate effectiveness of outsourced team • Knowledge sharing sessions at the start and end of every sprint• Captured issues and their resolution using a Wiki


Case Study: Metrics


Case Study: Metrics

Sprint Cost Savings24-Feb -$11,51725-Mar $7,82726-Apr $12,38927-May $24,23128-Jun $24,794


Client Satisfaction Survey


Case Study: Results

• Target productivity (98% of onshore team) achieved 6-weeks ahead of schedule

• Achieved a sustainable, 40% cost saving compared to onsite team

• Team still with the project : 0 turnover to-date


Team Model & Pricing

Two Examples


Pilot Team

• Project Scope: provide a small project team over the course of a fixed duration in order to evaluate CEI’s outsourcing capabilities

• Objectives:– Establish the team– Establish a baseline set of metrics– Begin knowledge transfer / training in current systems– Provide support and enhancements of current systems– Measure the results


Pilot Team Model

PMOAmar Singh

Project Manager(Sara)

Onsite Lead Developer

Sr. Developer

Developer

Quality Assurance

SEPG Auditor(Riyaz)

VP Solutions Delivery Mike Snell

VP Solution Services Jay Sutermaster

Microsoft Branch Manager Ryan Baker

CEI US Management Team CEI India Team

Moved onsite for duration of pilot (3m)

SMEs / BA / Architects

Stakeholder / PM

QA / UAT

Operations

Client Team


Pilot Team: Estimated Costs

• Technical Lead brought to the US for duration of pilot (3-months)– Bills at offshore rate– Discuss travel / per diem costs during pilot phase

• Team will work on a T&M basis

Role Rate Hours / Week

Duration (Weeks) Est. Pricing

PMO NC 2 13 $ - Project Manager $ 30.00 20 13 $ 7,800 Onsite Tech Lead $ 30.00 40 13 $ 15,600 Sr. Developer $ 30.00 40 13 $ 15,600 Developer $ 25.00 40 13 $ 13,000 Quality Assurance $ 25.00 24 13 $ 7,800 Systems Administrator NC 2 13 $ - SEPG NC 2 13 $ -

$ 59,800


2-Year Team

• Project Scope: provide an outsourced team to deliver system solutions over the course of 2-years

• Activities Include:– Application support– Enhancements to existing systems– Create new applications (full SDLC development)– Quality assurance / test-asset creation


2-Year Team Model

PMOAmar Singh

Project Manager(Sara)

Onsite Lead Developer

Sr. Developer

Developers (3)

Quality Assurance

SEPG Auditor(Riyaz)

VP Solutions Delivery Mike Snell

VP Solution Services Jay Sutermaster

Microsoft Branch Manager Ryan Baker

CEI US Management Team CEI India Team

Onsite as required

SMEs / BA / Architects

Stakeholder / PM

QA / UAT

Operations

Client Team


2-Year Team: Estimated Costs

• Price is for a 2-year commitment to the team• Team will work on a T&M basis.

(no charge for holidays, vacations, etc.)

Role Rate Hours / Week Duration (Weeks) Estimated Pricing

PMO NC 2 104 $ -

Project Manager $ 30.00 20 104 $ 57,840 Tech Lead / Sr. Developer $ 30.00 40 104 $ 115,680 Sr. Developer $ 30.00 40 104 $ 115,680 Developer 1 $ 25.00 40 104 $ 96,400 Developer 2 $ 25.00 40 104 $ 96,400 Developer 3 $ 25.00 40 104 $ 96,400 Quality Assurance $ 25.00 40 104 $ 96,400

Systems Administrator NC 2 104 $ - SEPG NC 2 104 $ -

$ 674,800


Questions & Discussion

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