Globalization of Software Development Global Essay

Download this Essay in word format (.doc)

Note: Sample below may appear distorted but all corresponding word document files contain proper formatting

Excerpt from Essay:

There are several reasons why this model is particularly relevant for outsourcing relationship maturity. First, at the lowest level of the model the focus is on purely reacting, which is exactly what many companies do when they are stressed with cost over-runs and needing to make a greater level of profitable performance happen in a very short period of time. Pan iced, companies will often resource to outsourcing and actually make their entire companies run even worse than before. Paradoxically, if a company takes the perspective on outsourcing that it is so driven by the urgent need to cut costs that they don't see the impacts of overall performance possible, eventually they will continue to churn in the lower levels of the model. Conversely, those organizations who see their role as being that of creating strategic alliances with outsourcing partners, their businesses excel and thrive given the high level of collaboration achieved. It is all a matter of how organizations choose to partner with outsourcing providers, and whether they see the relationships as strategic or not.

How companies traverse this maturity model and gain a foothold on the higher-end of it is also a cautionary tale from the Globus case study as well, as they are showing how to churn at the bottom levels. What companies must do is create enough itnerproess integration links, shared outcomes results and high level of task ownership overall to drive the development of entirely new ways for the outsourcing provider and client to deliver value. It must be a core focus of how to bring value to the shared customers of the outsourcing provider and the customer that pervades all activity. Without this, the entire outsourcing relationship will fail. Trust is the catalyst that propels companies to the top of this model and effective communication strategies keep them there. In effect for a company to attain the highest level on this model they will have to integrate their outsourcing partner directly into their value chain.

Examples of these types of scenarios including Y2K, SOX compliance and others illustrate why global software development is growing so rapidly. Another aspect of this first best practice is important to note as well. While traditional pure-play software outsourcing companies exist, the ones capable of being able to literally deliver results within weeks of a project starting also have extensive Business process Management (BPM) and Business Process Re-engineering (BPR) expertise (Ren, Ngai, Cho, 2011). The combination of software development and process engineering expertise are two of the more powerful catalysts that proceeded Infosys, HCL and other Indian outsourcers into multiple billions of dollars in revenue since their inception.

A second best practice is the selective outsourcing of software projects and tasks that are relatively easily duplicated and easily managed through TQM and Six Sigma frameworks. This is often the case with start-up companies who want to put their best software engineers on the most difficult and differentiating aspects of their software applications (Oza, Hall, Austen, Grey, 2006). This approach fees up these highly paid software engineers to find greater differentiation for their companies in the coding and development of the central areas of their applications. Companies including Microsoft, Oracle, SAP and do this routinely to allow large-scale projects to move ahead more rapidly (Oza, Hall, 2005). This practice is also pervasive for the thousands of enterprise applications developed every year by large-scale enterprises including Fortune 1,000 companies who typically build their own internal applications rather than purchase them from enterprise software vendors. This approach to outsourcing smaller segments of a broader enterprise application drastically reduces the time it takes to write the entire application, assures a higher level of quality management on each specific module as they are managed to Six Sigma quality levels, and also reduces the cost of the overall development project. Enterprise software research firm and consultancy Gartner estimates that up to 19% of development costs and over 10% of development time in a large-scale enterprise software project can be saved using this approach (Khan, Niazi, Ahmad, 2011) . The reliance on this approach has had a cumulative effect of reducing project delays by at least 25% in one case and has also greatly streamlined the development cycles of more complex enterprise system platform (Khan, Niazi, Ahmad, 2011). A third best practice is the deliberate decision on the part of many enterprise software vendors and Fortune 1,000 companies both to rely more on outsourcing for any aspect of software development that did not have a direct strategic benefit to their firms. This mindset pervades many of the freight forwarding companies and those business models that must invest all available resources in the continual development of process optimization technologies including constraint-based modeling to ensure their vehicles deliver the highest levels of profit possible. Companies who exhibit this best practice of software outsourcing have very specific needs and requirements of their business model from a computational and constraint-based standpoint; the skills sets that make these aspects of their business model work are not easily replaced. Instead of marginalizing these resources, companies as diverse as FedEx, UPS and ship forwarding companies including SRI International Logistics will often outsource large blocks of component-based code to outsourcers globally to complete. Core programmers concentrate on the rules-based and constraint models that optimize profitability by delivery channel and vehicle. The reliance on outsourcing in companies with advanced technologies as a core part of their business model is pervasive.

Relying on TQM and Six Sigma frameworks to ensure a high level of software quality is what many of these companies rely on to ensure the code delivered will be usable and immediately integrate into their broader platforms. This is also true of many of the Fortune 1,000 companies who don't have the resources to invest in smaller code updates or module extensions to their core applications. Instead of bringing on programmers and coders just for these functions, outsourcing them significantly streamlines the overall system development process. These modules are also designed to a specific series of Application Programmer Interface API) protocols and requirements, further ensuring their compatibility with existing code base (DCosta, 2002). This type of scenario is often completed through a virtual team structure with members of each development group rarely if ever seeing each other in person. According to the best practices research completed, this approach is also the one that is best suited to managing module development through virtual cross-functional teams using online collaboration and communication tools. For HCL, Infosys and others, projects like this are often the greatest profit-makers for their core software outsourcing businesses (Dey, Fan, Zhang, 2010).

A fourth best practice in global software development is rapidly emerging as a result of the exponential increase in demand for entirely new platform-based applications in smartphones and tablet PCs. The growth in outsourcing for the development of Apple iOS and Google Android-based applications continues to escalate as both enterprise software vendors anxious to move into this emerging market and Fortune 1.000 companies see to automate their sales forces. Apple continues to dominate in this market due to the iPhone and iPad adoption rate and pace of new product introductions. Outsourcing the development of applications on new platforms is another best practice both enterprise software vendors and Fortune 1,000 companies are relying on to stay competitive in their core markets. The intensity and pace of competitive rivalry is acute in these markets as well. Using the Porter Five Forces Model, the Smartphone industry is analyzed in Figure 2.

Figure 2: Five Forces Model of the Smartphone Market

Sources: (Porter, 208) (Apple Investor Relations, 2012)

Advantages and Disadvantages of Global Software Development

As can be seen from the best practices in this analysis there are many advantages to outsourcing global software development, and many potential costs and disadvantages as well. The intent of this section of the study is to define what the top advantages and disadvantages are pertaining to the globalization of software development. From the best practices research completed, the main advantages include the following:

Greater access to expertise and intelligence regarding software development and advancing process re-engineering techniques. This is the most common advantage cited by those companies attaining best practices in global software development through outsourcing. This strategy is also critically important for creating more time and focus on the core business models both of enterprise software companies and many of the Fortune 1,000 companies who routinely rely on software outsourcing partners for specific, highly complex projects (DCosta, 2002). The overriding motivation in this scenario is to gain rapid access to deep expertise in a given area of software development and quickly turn around a project that is strategically important to the software vendor or larger enterprise. This advantage is also often supported by thoroughly defined quality and compliance metrics for the project plan, including TQM and Six Sigma metrics as well (Dey, Fan, Zhang, 2010).…[continue]

Cite This Essay:

"Globalization Of Software Development Global" (2012, March 15) Retrieved December 8, 2016, from

"Globalization Of Software Development Global" 15 March 2012. Web.8 December. 2016. <>

"Globalization Of Software Development Global", 15 March 2012, Accessed.8 December. 2016,

Other Documents Pertaining To This Topic

  • Software Development in Cloud Computing

    Cloud Computing to Assist Multi-Site Software Companies The Use of DSS to Assist Multi-Site Software Companies As technology becomes more and more globalized, so does the focus of computer technology and this includes the globalization of software development (Holsapple, 2006). As a result, the demands of requirements engineering in multi-site software development organizations are increasing. The task is becoming increasingly difficult to handle because of the different needs of the globalized

  • Global HR Management Human Resource

    Employee development and training is an alternate zone. In the IT business, training is not simply about recognizing training needs and giving the presupposed training, but anticipating and reckoning the necessities and advancing suitable training to equip employees so that they can handle the challenges. Another serious challenge is the way businesses have the ability to fuse all the sub-systems in HR and help them in accomplishing a definitive objective:

  • Global Technological Advancements on the

    However, they remind us of the author Lall (2000), who declares that before companies or farms can use and derive the benefits of the technology, they need to learn and develop new skills. Beyond the capacity of adopting new techniques, developing countries also need the capacity to invent and adapt new technologies. Poor countries need to foster their own creativity to use both local and global knowledge and science

  • Globalization and Human Rights Human Rights Issues

    Globalization and Human Rights Human Rights Issues and Globalization Overview of Human Rights Overview of Globalization Implications of Globalization on Human Rights Human Rights for Future Generations Overpopulation Climate Change It was argued long ago by Greek historian Herodotus that there are no universal ethics (Ishay, 2008). The historian argued that different cultures had different perceptions about what is acceptable behavior and what rights people should be granted. Herodotus illustrates this argument by comparing burial rituals that were

  • Global Leadership Competencies International Organizations Need Transformation...

    Global Leadership Competencies International organizations need transformation. Leaders in all sectors have a challenge to lead globally now and in the future. This requires an examination of current leaders of international organizations who have always been required to lead globally. Many lessons come out of these leaders because they have experience, influence, and motivation. The lessons will help others become successful global leaders and lead to success in the future. Leadership

  • Global Leadership Producing Global Leaders

    Precious startup capital can then be logistically provided to critical areas that otherwise would go unserved to accomplish a large amount of growth with less money. Even white collar functions such as customer service, sales, computers, finance and accounting operations can be outsourced to India or a number of overseas centers with large concentrations of Anglo speakers and readers. Companies are increasingly outsourcing more and more complex functions than

  • Global Business Current Business Events

    The lack of process orchestration shows that IBM is failing to understand and manage the bargaining power of suppliers effectively. The core requirements of the project center on a series of healthcare professionals who taken together are the stakeholders of a complex payroll processing system (Paull, 2013). The requirements from a project management standpoint is to concentrate on the bargaining power of suppliers as system integration partners and create

Read Full Essay
Copyright 2016 . All Rights Reserved