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OFFSHORING-HOW TO PROTECT THE AUSTRALIAN SOFTWARE INDUSTRY BY REALLY TRYING

OFFSHORING-HOW TO PROTECT THE AUSTRALIAN SOFTWARE INDUSTRY BY REALLY TRYING. by Assoc. Prof. Karl Reed,FACS, FIE-Aust., MSc,ARMIT. Chair IEEE-Computer Society Tech. Council on Software Engineering

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OFFSHORING-HOW TO PROTECT THE AUSTRALIAN SOFTWARE INDUSTRY BY REALLY TRYING

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  1. OFFSHORING-HOW TO PROTECT THE AUSTRALIAN SOFTWARE INDUSTRY BY REALLY TRYING by Assoc. Prof. Karl Reed,FACS, FIE-Aust., MSc,ARMIT Chair IEEE-Computer Society Tech. Council on Software Engineering Governor, IEEE-Computer Society(1997-1999,2000-2002), Director, Computer Sys. & Software Engineering Board, ACS, Department of Computer Science & Computer Engineering, La Trobe University “Those who fail to study history are bound to repeat it” “The only places where there are level playing fields are on flat earths and in Australia” apologies to Barry Jones Rve 1.0 27/10/2004 Rve 1.1 6/12/2010

  2. A Bit of History….. The Issues… The Threats… What Australia should do? propose the Australian Sports Development Model.. -talent-id -nature`,protect and research -invest -compete Some questions. What is the T.O. of Ericssons? ~US$15B What is the population of Sweden? 9m WHY DOESN’T AUSTRALIA HAVE (IT) TRANSNATIONALS OF THAT SIZE? This Panel Contribution….

  3. 1. During the Industrial Revolution, British spinning and weaving mills wiped out the Indian (home-spun) cloth industry… Offshoring is a two-edged sword? 2. The Australian Software Industry, and our large-scale computer users produced many major “firsts” or equalled them, in terms of major software developments… -Earliest “Builder” style tools developed in Australia in late 1970’s -World’s first on-line TAB mid 1960’s -Early large-scale on-line banking (SSBV,mid1970’s) -Early large-scale OO commercial systems (CML-smalltalk) -First AS-400 development tool (Aspect,mid 1980’s) -Large-scale student record system (Callista, ~2000) 3.The industry was a regional leader in the 1980’s and early 1990’s 4. NEVER received government support of the kind provided to industries in other fields,and in other countries 1. A Bit of History….

  4. 1. Loss of industrial capacity in a critical enabling and product related technology= loss of opportunity for national profit-taking 2. Loss of job-opportunities and investment opportunities 3. The industry was a regional leader in the 1980’s and early 1990’s 4. NEVER received government support of the kind provided to industries in other fields,and in other countries - research deficit, government purchasing policy generally unfriendly 5. Industries in some “offshoring” countries receive government assistance..e.g. China, fixed currency 6. Main problem with offshoring.. Distributed development is difficult, and a largely unsolved problem! 2. The Issues…

  5. 1. Research in Software Engineering addresses the problem of distributed development- -computer supported cooperative work -improved system requirements gathering,and description -internationalisation will lead to a break-down of nation-specific domain expertise -improved system description techniques will permit real-handover between development phases. 2. Quality of SE education & research in developing countries will improve at least as fast as ours will.. Maybe faster 3. Main problem with offshoring.. Distributed development is difficult, and a largely unsolved problem! 3. The Threats…

  6. Optimal task allocation, observed <1970 one or two people Feasibility Study Requirements Analysis Systems Analysis Program Design Programming Unit Test System Integration System Test Waterfall S/W Process Model / No need for ‘third-party” readable work products!

  7. 4. What Australia should do? propose the Australian Sports Development Model.. -talent-id -nature`,protect and research -invest -compete HAVE A GOAL, THE CREATION OF AUSTRALIAN TRANSNATIONALS OF THE SIZE OF ERICSSON?

  8. A. Protect and Nature’…. -Develop Australian standards that are super-sets of our competitors, mandate them and help local companies reach them, -Block Offshoring for a period of five-six years, using the reverse of the US approach to beef in the FTA.. Reduce protection gradually.. (Plenty of precedents for this….) -Ensure government outsourcing contacts go to local companies to allow then to grow… -Encourage venture capital.. (~$40Binvested in”old” industries in the last 15 years for little new economic activity) -Establish a world-class research centre in IT Economics, and intelligence buerau.. Commonwealth Govt.Bureau of IT Industries.. As good as the Tiawanese III 4. What Should Australia Do?

  9. B. Invest….. Largely in R&D to develop new products and development methods.. - IT-Security systems, - Dramatically raise productivity.. - product-line and reuse techniques, -cross-domain isomorphisms -encourage domain specialisation -component based development techniques - High(er) quality products.. This means product quality standards,Safety Critical Systems Techniques - Zero Adoption Impact Applications (Reed, 2003).. - Develop skills and products for the re-vamp of web-sites that will come soon.. - High-yield,high efficiency testing - Establish collaborative “skunk-works” to develop proof of concept demos of new product ideas. 4. What Should Australia Do?

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