Key success drivers in offshore software development : New Zealand and Indian vendors' perspectives : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Information Technology at Massey University, Albany campus, New Zealand
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Date
2009
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Massey University
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Abstract
Offshore software development (OSD) is a leading business sector in the present ‘glocal’ IT
marketplace, and vendors in different countries are opening software development centres
worldwide to take advantage of the new business opportunities. However, software
development is both a technical and a social process as various software modules need to be
integrated, which requires ongoing interaction between the stakeholders. The software
modules rely upon local knowledge regarding customer wants, project specific features,
chosen design methodologies by development team members and synchronisation of
activities to confirm the next design iteration. This study focuses on knowledge sharing
processes involving the interplay between acquiring local knowledge and applying the
knowledge acquired into the design of the client-specific software builds. New knowledge
is created as new processes are applied and new outcomes realised, resulting in re-definition
of software development practices.
Building on existing theories with empirical case study evidence, this research reveals the
socio-technical influences on knowledge management in the OSD process. Ideographic
research methods have been applied to bring sensitivity in the everyday organisational
activities for knowledge sharing across diverse social and cultural groups within two
country contexts (New Zealand and India). Empirical data from ten case studies is used to
inductively develop a conceptual framework, which has been applied to make within case
and cross case comparisons across three levels of analysis (micro, meso and macro) for
knowledge sharing. The micro level analysis explores individual key success drivers
(behaviours and methodologies), the meso level explores organisational level practices
(work processes and structures) and the macro level gives a holistic evaluation across two
country contexts.
Country contexts reveal that New Zealand vendors share closer cultural proximity with their
clients, are engaged in client facing skills and have further outsourced software
development tasks to other low cost countries. The Indian vendors are involved in software
construction, prefer technical specialist skills and have defined more discipline in their
software development processes. The thesis offers new insights on how vendors’ shape
their software development styles based upon their beliefs and understanding of the
offshore market and is especially relevant to both vendors and clients who intend venturing
into the offshore market.
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Keywords
Software localisation, Knowledge sharing, Case studies