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GLOBAL SOFTWARE

DEVELOPMENT
By Logan Thiem
Global Software Development
• What is it? (GSD)
• Work done across national
boundaries
• Involves:
• Communication
• Coordination
• Control
• Infrastructure
Why Global Software Development?
• Most Common Reason:
• Cost Saving
• Insufficient resource available
• Recent Reasons:
• Remain Focused on Core
Competencies
• Gain access to world-class
capabilities
History
• “If a foreign country can supply us with a commodity
cheaper than we ourselves can make it, better buy it off
them with some part of the produce of our own industry
employed in a way in which we have some advantage.”
• Adam Smith’s “The Wealth of Nations’ in 1776
History: Phase 1
• Phase 1:
• Texas Instruments R&D center in 1985
• First multinational captive center in India
• Captive Center: An operation that is owned by an offshore company.
The activities are performed offshore but are not outsourced to a third
party.
• Deutsche Bank and Citigroup in 1992 in India
• IT and business process services
• Samsung in 1993 in Moscow
• 21 captive centers in 12 years
• Vast majority in India
History: Phase 2
• “Came to India for costs, stayed for quality.”
• Head of operations for Dell India
• Range of offshore services expanded
• Due to “General Electric Effect” in India
• HP, IBM, Verizon, LG
• 66 captive centers in 5 years
• Rise of R&D in China
History: Phase 3
• “It has been said that arguing against globalization is like
arguing against the laws of gravity.
- Kofi Annan, Statement of the former Secretary General of the
United Nations
- Shell, JP Morgan, Royal Bank of Scotland
- Outsourcing is now mainstream
- 137 captive centers in 3 years
Benefits
Mechanisms used in GSD
• Centralized Structure
• Early Identification of Dependencies
• Documentation
• Periodic Commits
• Daily Builds
• Periodic Meetings
Issues
Issues
• Strategy
• Communication
• Coordination
• Managing Cross-Culture
• Etc.
Strategy
• When?
• To Whom?
• How?
• What?
• IT Support
• Application Development
• Where?
Communication
• Distance
• Power Distance Index
• Click me!
Communication
• Time Zone Difference
• Infrastructure Support
Communication
• Type
• Informal
• Formal
• Synchronous
• Phone, Video Conference, etc.
• Asynchronous
• Email, Voice-mail, etc.
Communication
• Group Awareness
• Explicit
• Consequential
• Feed Through
Coordination
• Lack of Flexibility & Integration
• Poor Role Support
• Lack of Informal Communication
Culture
• High Context vs. Low Context
• Poly-chronic vs. Mono-Chronic
• Must be understood and Respected
Managing Cross-Culture
• Reduce Cultural Distance
• Reduce “Virtual Distance” Via Communication
• Recognize Limits
Risks
• Global Software Development taken too far:
Risks
Risks
• Hidden Costs
• Additional Charges
• Decreased Flexibility
Statistics
Questions?

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