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
Mechanisms used in GSD• Centralized Structure• Early Identification of Dependencies• Documentation• Periodic Commits• Daily Builds• Periodic Meetings
Communication• Distance
• Power Distance Index
• Click me!
Communication• Type
• Informal• Formal
• Synchronous• Phone, Video Conference, etc.
• Asynchronous• Email, Voice-mail, etc.
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