Local software development in industry globalization

This paper presents the results of a research project, in which the situation of local software organizations operating with global industrial customers were examined. The prospects of locally operating software organizations have been lately dimmed by the processes of globalization, IT outsourcing, and offshore software development. The current situation of local software organizations is analyzed, and also trends and challenges that they face in the future are described. In the study, qualitative analysis with grounded theory was used as the research method. The analysis identified three types of local software organizations.Using business processes, technologies, and types of customer relationships and cooperation as the basis, these types can be labelled as Anticipator, Specializer and Collector. Local software organizations had recognized their inability to compete with globally operating software enterprises and they had difficulties in coping with changes in competition caused by outsourcing, mergers, and offshore development. The analysis of future trends produced three possible models of cooperation between asymmetrical partners, tailored solutions provider, software producer, and capacity provider

Software-export strategies for developing countries: A Caribbean perspective

The globalization of the software industry is seen to be driven in part by skill shortages in industrialised economies, the movement of software development practices away from centralised to more distributed modes and the spread of information and communication technologies to less developed economies, where skilled labour is available at lower costs. As such, a software export industry is sometimes seen as a means by which some non-industrialised countries can create competitive advantage. While many studies have explored the software-exporting strategies used by the more successful of these countries, little research has been done in other locations that lack some of the basic resources deemed necessary for success in this area. This paper describes two Caribbean software-outsourcing ventures in order to explore possible software-export strategies available within such atypical contexts. The role of government and degree of integration of the software outsourcer into the local context are found to feature significantly

An Offshore Silicon Valley? The emerging Irish Software Industry

This paper assesses the development potential of local inter-firm networks in Newly Industrializing Countries. This is done through an analysis of the role of such networks in the growth of the software industry in the Republic of Ireland. Transnational software companies located in Ireland developed extensive local supply networks. Local social networks and a local culture of innovation contributed to the growth of an indigenous software development sector. While local networks can generate significant competitive advantage for a region they are inevitably internationalized as successful firms organize globally or as the region attracts further foreign investment. Corporations utilize local networks to solve problems of cost, control and innovation management in the globalization of production and corporate organization.While fostering local networks can be an effective public policy, it is not sufficient for development. The role of the state in supporting, guiding and bargaining with local firms in these networks remains a crucial aspect of development strategy

Perceptions of Intellectual Property:A Review

In “The right to good ideas: patents and the poor”, The Economist depicts two driving forces in the contemporary discourse on IP and globalization. The one is interested in advancing the knowledge economy, an approach based on the belief that knowledge is the driving factor behind economic growth. The other resides on a belief that IP is a major means to advance the process of globalization. While the former is strongly motivated by new economic growth theory, as for example advanced by Stanford professor Paul Romer, the latter is based on typical anti-globalization arguments, such as for example the position that the IP system helps multinational companies to build up monopolies to the detriment of the poor, drives small and medium-sized enterprises (SMEs) and local business in developing countries out of business and increases prices for consumer products, be they pharmaceuticals or software. The purpose of this review is to help understand the current discourse on intellectual property, to grasp underlying themes, assumptions and connotations associated with the term “IP”, so as to identify paths leading to a more comprehensive understanding of IP and the opportunities and pitfalls it may provide

Knowledge-based industry and regional growth

One of the most important but less understood phenomena in the beginning of the 21st century has been a shift toward knowledge-based economic activity in the comparative advantage of modern industrialized countries. Two broad trends has been observed in the global economy. That is, the output from the world's science and technology system has been growing rapidly and the nature of investment has been changed (MILLER, 1996). The relative proportions of physical and intangible investment have changed considerably with the relative increase of intangible investments since the 1980s. In addition, there has been increased complementarity between physical and intangible investments and more important role of high technology in both kinds of investment (MILLER, 1996). Even in the newly industrialized countries, the growth of technology intensive industries, the increase of R&D activities and the growth of the knowledge intensive producer services have been common feature in recent years. In this change of the structure of productive assets, the role of knowledge is well recognized as the most fundamental resources in recent years (OECD, 1996; WORLD BANK, 1998). The development of information and communication technology (ICT) and globalisation trend have promoted this shift toward knowledge-based economy

Logics of Action, Globalization, and Employment Relations Change in China, India, Malaysia, and the Philippines

A logic of action framework is developed in order to conceptualize and understand the impact of globalization on employment relations, as well as to predict the future trajectory of employment relations. The argument is that the interplay between three different logics of action, i.e., the logic of competition, the logic of industrial peace, and the logic of employment-income protection determines the employment relations pattern in any given nation. The strengths of the logics themselves are determined by five often related factors, i.e., economic development strategy, the intensity of globalization, union strength, labor market features and government responsiveness to workers. Drawing on extensive field research on national policies and workplace practices in India, China, the Philippines and Malaysia, we show support for our framework. We find that ER patterns are reflect different combinations of logic strengths, that globalization\u27s impact on employment relations is not only complex, but contingent, and we suggest that long term convergence in employment relations is unlikely given variations in the combinations of logic strengths in different countries, and changes in logic strengths over time

Everywhere and nowhere: Nearshore software development in the context of globalisation

Offshore software outsourcing, a major contributor to globally distributed work (GDW), has been identified as one of the most striking manifestations of contemporary globalisation. In particular, offshoring resonates with influential views that suggest that ICTs have rendered location irrelevant. Some research, however, has questioned this “placeless logic” and suggested that location may be significant to the success of offshoring ventures. In this paper, we draw on evidence from two nearshore software development ventures in the Caribbean to identify a number of locational characteristics relating to the physical, economic and cultural setting, local resources and government policy that may be important in influencing the suitability of offshore outsourcing venues. Some of these are recognised, even by companies pursuing placeless location strategies, while others were unanticipated. The cases also suggest that companies may be able to actively shape certain characteristics to their advantage. Implications for vendors and clients of nearshore information services, and potentially also for companies considering offshore ventures in non-traditional locations, are identified

Culture dimensions in software development industry: The effects of mentoring

Software development is a human centric and sociotechnical activity and like all human activities is influenced by cultural factors. However, software engineering is being further affected because of the globalization in software development. As a result, cultural diversity is influencing software development and its outcomes. The software engineering industry, a very intensive industry regarding human capital, is facing a new era in which software development personnel must adapt to multicultural work environments. Today, many organizations present a multicultural workforce which needs to be managed. This paper analyzes the influence of culture on mentoring relationships within the software engineering industry. Two interesting findings can be concluded from our study: (1) cultural differences affect both formal and informal mentoring, and (2) technical competences are not improved when implementing mentoring relationships

Different competences, different modes in the globalization of innovation?. A comparative study of the Pune and Beijing regions

Since the seminal work of Archibugi and Michie (1995) on the globalization of innovation, several authors have tried to understand the complex relationship between innovation and internationalization, mainly using firm or sectoral level data. However, most of them tend to focus on just one form of globalization of innovation – exploitation of technology, research collaboration or offshoring of R&D – and often One traditional indicator of innovation, like patents or R&D investments, thus ignoring the complexity of the phenomenon. Furthermore, little attention has been paid to the interplay of the micro characteristics of firms, the region in which they are embedded and different forms of globalization of innovation. Our paper is based on three distinct modes of globalization of innovation: global exploitation of innovation, global sourcing of technology and global research collaboration, thus adapting Archibugi and Michie’s taxonomy to a developing country context. We then use this taxonomy to explore empirically the linkages of firm-level competences, the nature of the international activities and the region in which the firms are located: Pune in India and Beijing in China. We use primary data on the two regions to show that the Pune region is specialized in the three types of globalization of innovation, and in particular in the exploitation of innovation more than Beijing. A deeper analysis of the micro characteristics of the firms shows that the three modes of globalization of innovation are associated to different competences. Firms with technological and organizational competences show a higher propensity to develop international linkages, while firms with a high level of educated human resources seems to focus more on the domestic market.globalization; innovation; regions; competences; China; India