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Global Software Development

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

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Global Software Development

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  1. Global Software Development By Logan Thiem

  2. Global Software Development • What is it? (GSD) • Work done across national boundaries • Involves: • Communication • Coordination • Control • Infrastructure

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. Benefits

  9. Mechanisms used in GSD • Centralized Structure • Early Identification of Dependencies • Documentation • Periodic Commits • Daily Builds • Periodic Meetings

  10. Issues

  11. Issues • Strategy • Communication • Coordination • Managing Cross-Culture • Etc.

  12. Strategy • When? • To Whom? • How? • What? • IT Support • Application Development • Where?

  13. Communication • Distance • Power Distance Index • Click me!

  14. Communication • Time Zone Difference • Infrastructure Support

  15. Communication • Type • Informal • Formal • Synchronous • Phone, Video Conference, etc. • Asynchronous • Email, Voice-mail, etc.

  16. Communication • Group Awareness • Explicit • Consequential • Feed Through

  17. Coordination • Lack of Flexibility & Integration • Poor Role Support • Lack of Informal Communication

  18. Culture • High Context vs. Low Context • Poly-chronic vs. Mono-Chronic • Must be understood and Respected

  19. Managing Cross-Culture • Reduce Cultural Distance • Reduce “Virtual Distance” Via Communication • Recognize Limits

  20. Risks • Global Software Development taken too far:

  21. Risks

  22. Risks • Hidden Costs • Additional Charges • Decreased Flexibility

  23. Statistics

  24. Questions?

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