1. CEI’s Outsourcing Offering
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

2. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

3. About CEI
An Overview
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4. CEI Fast Facts
• Areas of Expertise
• IT Services Provider since 1992
• $45+M revenues
• 400+ employees
• Clients nationwide
– Over 60% of the Fortune 50
– Focus on PA, OH, Mid-Atlantic
• Industry Recognition
• US based with offshore offices
– PA, CA, IN, NY
– Chennai, India
• Focus on Quality – 5
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5. Some of Our Clients
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6. CEI’s Microsoft Practice
• Microsoft Gold Certified Partner x4
• Application Lifecycle Management (ALM)
Inner Circle
• SharePoint Deployment Planning Services
partner
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7. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

8. 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
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9. 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)
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10. 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
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11. CEI Solutions Team
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12. Outsourcing Success Factors
Our Global Agile Delivery Model
for Outsourcing
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13. 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. …”
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

14. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

15. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

16. Key Success Factors: Communication
For all project stakeholders:
 Participation
Steering
 Communication channels
Committee
 Flow of information
Monthly Oversight
Issue Escalation
Project Team
Management SCRUM
Daily Issue Escalation
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

17. Key Success Factors: Issue Escalation
Priority Example Escalation Steps
An issue which can jeopardize The issue will be escalated to Executive
Critical
the success of the project Management immediately (VPs / CEO)
An issue which may impact The issue will be escalated to the CEI PMO and
High
project schedule or cost the Account Manager
An issue which has the The CEI project manager shall discuss the issue
Medium
possibility of impacting the with the team and the client project manager
and escalate the issue to the PMO as deemed
project schedule or cost
necessary
An issue that does not impact The project manager shall resolve the issues
Low
or work with the client project manager as
project schedule or cost
needed to resolve the issue
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

18. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

19. Key Success Factors: Documentation
Project Planning Project Management
• • Status Report and Risk
Communications Plan
Analysis
• Resource Plan
• Billing Report
• Project Process
• Updated Project Plan
• Project Plan
• PMO Report
• Change Management Plan
• Project Audit
• Configuration Management
• Project Closure
Plan
• Test / Review Plan • Customer Satisfaction
Questionnaire
• Audit Plan
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

20. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

21. Key Success Factors: Performance Management
• Track progress of
project through metrics
• Provide weekly
summary of
schedule, issues, defect
s, requirements, billing,
and more
• Report status and
metrics at multiple
levels
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

22. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

23. 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)
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

24. Key Success Factors: Knock-out Tracking
S p rin t 8 B a c k lo g G ra p h
1600
15 19
14 2 9
1400 13 4 9
12 7 8
T o t a l H o u r s L e ft
1200 119 5
1112
10 2 7
1000 928
825
800 S p rint 8 P ro g re ss
73 8
644
L ine a r (S p rint 8 P ro g re ss)
600 556
4 71
400
200
0
-200
1
2
3
4
5
6
7
8
9
25
26
27
28
29
30
31
10
11
12
13
14
15
16
17
18
19
9/
9/
9/
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8/
8/
8/
8/
8/
9/
9/
9/
9/
9/
9/
9/
9/
9/
9/
D a te s
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

25. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

26. Outsourcing Case Study
A Global Developer of
Computer Aided Dispatching Systems
for Railways
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

27. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

28. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

29. Case Study: Metrics
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30. Case Study: Metrics
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31. Case Study: Metrics
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32. Case Study: Metrics
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33. Case Study: Metrics
Sprint Cost Savings
24-Feb -$11,517
25-Mar $7,827
26-Apr $12,389
27-May $24,231
28-Jun $24,794
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34. Client Satisfaction Survey
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35. 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
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36. Team Model & Pricing
Two Examples
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37. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

38. Pilot Team Model
CEI India Team
CEI US Management Team
VP Solutions Delivery
Mike Snell
PMO SEPG Auditor
Amar Singh (Riyaz)
VP Solution Services
Jay Sutermaster
Microsoft Branch Manager
Project
Ryan Baker
Manager
(Sara)
Client Team Onsite Lead Quality
Sr. Developer Developer
Developer Assurance
SMEs / BA / Architects
Moved onsite for
Stakeholder / PM duration of pilot (3m)
QA / UAT
Operations
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

39. Pilot Team: Estimated Costs
Hours / Duration
Role Rate Est. Pricing
Week (Weeks)
PMO NC 2 13 $ -
$ 7,800
Project Manager $ 30.00 20 13
$ 15,600
Onsite Tech Lead $ 30.00 40 13
$ 15,600
Sr. Developer $ 30.00 40 13
$ 13,000
Developer $ 25.00 40 13
$ 7,800
Quality Assurance $ 25.00 24 13
$ -
Systems Administrator NC 2 13
$ -
SEPG NC 2 13
$ 59,800
• 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

40. 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
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

41. 2-Year Team Model
CEI India Team
CEI US Management Team
VP Solutions Delivery
Mike Snell
PMO SEPG Auditor
Amar Singh (Riyaz)
VP Solution Services
Jay Sutermaster
Microsoft Branch Manager
Project
Ryan Baker
Manager
(Sara)
Client Team Onsite Lead Quality
Sr. Developer Developers (3)
Developer Assurance
SMEs / BA / Architects
Onsite as required
Stakeholder / PM
QA / UAT
Operations
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

42. 2-Year Team: Estimated Costs
Duration
Role Rate Hours / Week Estimated Pricing
(Weeks)
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
• Price is for a 2-year commitment to the team
• Team will work on a T&M basis.
(no charge for holidays, vacations, etc.)
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.

43. Questions & Discussion
Thank You!
For Discussion Purposes Only | © 2009 Computer Enterprises, Inc.