Globally Distributed Software Development – FextraxEssay Preview: Globally Distributed Software Development – FextraxReport this essayFextrax PresentationAssignment #2Globally Distributed Software Development (GDSD)“Software engineering is witnessing a transition from the traditional co-located form of development to a form in which global software teams collaborate across national borders” (Damian, Zowghi. 2003)
We live in an age of outsourcing. Firms seem to be subcontracting an ever expanding set of activities, ranging from product design to assembly, from research and development to marketing, distribution and after-sales service. Some firms have gone so far as to become “virtual” manufacturers, owning designs for many products but making almost nothing themselves.
It means finding a partner with which a firm can establish a bilateral relationship and having the partner undertake relationship-specific investments so that it becomes able to produce goods or services that fit the firms particular needs.1
This is the question that Fextrax must ask before they decide on GDSD or outsourcing:“What is the impact of stakeholders geographical distribution on global software development?”2How do remote communication and knowledge management, cultural diversity and time differences negatively/positively impact on the software development process?
Globally Distributed Software Development:GDSD is the creation of software by geographically distributed stakeholders in multiple locations.Some of the positive effects of GDSD are:International perspectives and skills sets are utilisedWider labour pool of highly skilled employees to choose fromReduce costs by locating staff and developing global offices in low cost economiesIncrease local knowledge of global markets (know what the customer wants)Opportunity for increased employee distributionIncreased autonomy for employees whose managers are not co-locatedFrom these positives we can deduct that GDSD can lead to improved performance, lower costs and improved workforce standards. However, not all the effects are positive and one must also consider the negative effects of GDSD
The Independent
Julia Sussan
Executive Director, GDSD
The Independent’s Julian Sussan is in a similar position to those with an emphasis on the global digital sector.
“Globalisation of work means more work for every one of us… It’s going to have really big potential for huge business but it’s also going to change people’s lives and relationships”.
Julia and her team also point out that all the major firms – Facebook, LinkedIn and Google – are doing some very poor business. It means more work for an organisation to meet its IT needs, and the result is more turnover from top to bottom.
As part of an annual survey of technology companies’, industry analysts and the media, a survey of over 8,000 employees on GDSD was undertaken. They found that while the companies’ growth was positive during the first half of 2015, there was a 1% drop in the value of IT-related companies over the last year which meant, as the report explained:
It is no less important for small businesses to invest in IT services to keep them viable and that includes managing their IT services, the provision of their resources, the provision of services for businesses to meet their existing needs and commitments… [and] more services – and higher-quality IT – should be provided to their customers and customers worldwide.
With more and more small businesses having limited access to more information and services, there seems to be an unwillingness to engage in the work itself and the result is growing workloads for small and large businesses.
Julia Sussan
Executive Director, GDSD
Julia Sussan is the world’s chief technology consultant. If she could only do more we would all be happier.
She has led a company in the digital technology space since 2006 and worked as the chief executive of Digital Communications Association of Australia before joining the GDSD organisation in 2012. In 2014, Ms Sussan was head of network and technology partnerships at Facebook.
She has worked for some 10 years at Microsoft, LinkedIn and Salesforce. Since retiring in 2012, she has developed and led a team of international IT pros, as well as for many in international IT, finance, security and other IT roles.
Julia’s primary role as chief executive and general manager of Digital Communications Association of Australia (DCA) during her time as head of the GDSD organisation is to provide a vision for the company’s future. She is also a passionate supporter of all of Australia’s major IT services providers, like Skype, iChat, Skype, AOL, Datalink and Google Sheets.
Currently, Ms Sussan is on Board the Australian Competition and Consumer Commission website.
Julia has had considerable experience with IT products and services. In her time as CEO of the company, she oversaw its efforts with the Australian Automation Laboratory
to develop industry-leading IT skills to meet current needs.
She was CEO (2003-2006) of the GDSD organisation from 2001 to 2004.
Julia attended the Institute for
The Independent
Julia Sussan
Executive Director, GDSD
The Independent’s Julian Sussan is in a similar position to those with an emphasis on the global digital sector.
“Globalisation of work means more work for every one of us… It’s going to have really big potential for huge business but it’s also going to change people’s lives and relationships”.
Julia and her team also point out that all the major firms – Facebook, LinkedIn and Google – are doing some very poor business. It means more work for an organisation to meet its IT needs, and the result is more turnover from top to bottom.
As part of an annual survey of technology companies’, industry analysts and the media, a survey of over 8,000 employees on GDSD was undertaken. They found that while the companies’ growth was positive during the first half of 2015, there was a 1% drop in the value of IT-related companies over the last year which meant, as the report explained:
It is no less important for small businesses to invest in IT services to keep them viable and that includes managing their IT services, the provision of their resources, the provision of services for businesses to meet their existing needs and commitments… [and] more services – and higher-quality IT – should be provided to their customers and customers worldwide.
With more and more small businesses having limited access to more information and services, there seems to be an unwillingness to engage in the work itself and the result is growing workloads for small and large businesses.
Julia Sussan
Executive Director, GDSD
Julia Sussan is the world’s chief technology consultant. If she could only do more we would all be happier.
She has led a company in the digital technology space since 2006 and worked as the chief executive of Digital Communications Association of Australia before joining the GDSD organisation in 2012. In 2014, Ms Sussan was head of network and technology partnerships at Facebook.
She has worked for some 10 years at Microsoft, LinkedIn and Salesforce. Since retiring in 2012, she has developed and led a team of international IT pros, as well as for many in international IT, finance, security and other IT roles.
Julia’s primary role as chief executive and general manager of Digital Communications Association of Australia (DCA) during her time as head of the GDSD organisation is to provide a vision for the company’s future. She is also a passionate supporter of all of Australia’s major IT services providers, like Skype, iChat, Skype, AOL, Datalink and Google Sheets.
Currently, Ms Sussan is on Board the Australian Competition and Consumer Commission website.
Julia has had considerable experience with IT products and services. In her time as CEO of the company, she oversaw its efforts with the Australian Automation Laboratory
to develop industry-leading IT skills to meet current needs.
She was CEO (2003-2006) of the GDSD organisation from 2001 to 2004.
Julia attended the Institute for
The Independent
Julia Sussan
Executive Director, GDSD
The Independent’s Julian Sussan is in a similar position to those with an emphasis on the global digital sector.
“Globalisation of work means more work for every one of us… It’s going to have really big potential for huge business but it’s also going to change people’s lives and relationships”.
Julia and her team also point out that all the major firms – Facebook, LinkedIn and Google – are doing some very poor business. It means more work for an organisation to meet its IT needs, and the result is more turnover from top to bottom.
As part of an annual survey of technology companies’, industry analysts and the media, a survey of over 8,000 employees on GDSD was undertaken. They found that while the companies’ growth was positive during the first half of 2015, there was a 1% drop in the value of IT-related companies over the last year which meant, as the report explained:
It is no less important for small businesses to invest in IT services to keep them viable and that includes managing their IT services, the provision of their resources, the provision of services for businesses to meet their existing needs and commitments… [and] more services – and higher-quality IT – should be provided to their customers and customers worldwide.
With more and more small businesses having limited access to more information and services, there seems to be an unwillingness to engage in the work itself and the result is growing workloads for small and large businesses.
Julia Sussan
Executive Director, GDSD
Julia Sussan is the world’s chief technology consultant. If she could only do more we would all be happier.
She has led a company in the digital technology space since 2006 and worked as the chief executive of Digital Communications Association of Australia before joining the GDSD organisation in 2012. In 2014, Ms Sussan was head of network and technology partnerships at Facebook.
She has worked for some 10 years at Microsoft, LinkedIn and Salesforce. Since retiring in 2012, she has developed and led a team of international IT pros, as well as for many in international IT, finance, security and other IT roles.
Julia’s primary role as chief executive and general manager of Digital Communications Association of Australia (DCA) during her time as head of the GDSD organisation is to provide a vision for the company’s future. She is also a passionate supporter of all of Australia’s major IT services providers, like Skype, iChat, Skype, AOL, Datalink and Google Sheets.
Currently, Ms Sussan is on Board the Australian Competition and Consumer Commission website.
Julia has had considerable experience with IT products and services. In her time as CEO of the company, she oversaw its efforts with the Australian Automation Laboratory
to develop industry-leading IT skills to meet current needs.
She was CEO (2003-2006) of the GDSD organisation from 2001 to 2004.
Julia attended the Institute for
Research has found that the negative effects of GDSD are:Lack of common understanding due to poor communicationWork is slowed down due the involvement of more people leading to bureaucracyReduced awareness of working local context and practicesDistributed teams do not under go the same forming-storming-norming performing process that co-located teams doLack of TrustPeople at different sites are less likely to perceive themselves as part of the same team than are people at the same siteAbility to share work artefactsIn assessing the different effects that an implementation of GDSD would have on Fextrax it has been decided to perform a SWOT analysis to discover and outline the various internal and external factors that will affect any international development initiative that Fextrax may proceed with. This involves outlining the Strengths, Weaknesses, Opportunities and Threats.
Strengths:Increased economies of scale including buying hardware in bulkReduction of long-term costs such as labour, supplies etcGreater local knowledge bringing more customer closer to the companySite specialisation in areas such as marketing and developingIncreased skill set of managersIncreased brand awarenessWeaknessesLanguage barrier with employees of target countryInitial set-up costs may be expensive such as groupware and site developmentSlower software development time due to slower communications and different time zonesIncreased logistics management between sites in different countriesProblems getting current staff to move from current site to oversee the setup of the new siteCounter productive ramifications on staff moraleIncreased security risk for Fextrax on financial data due to increased transfer of sensitive data and information.OpportunitiesOpens up new market possibilities through new distribution channelsIncreased competitive advantage through cost reductionIncreased size in customer baseTake advantages of national competencies within the country of relocation such as Japans corporate loyalty and German efficiencyGovernment tax incentives for relocation – corporate tax allowancesGrant possibilities for start up in certain areas of different countriesReduced dependency on one market area. This reduces the risk if the economic or labour markets collapse.ThreatsNational culture may become company cultureMay lose focus on the current market (company spread too thin over several markets)Competitor may already be in the projected market and may have established a strong foothold.Barriers to entry may create difficulties within the selected market e.g. government regulations, corruption, infrastructure costs, licences and permits etc.
Expanding into new markets could result in trade union action from workers in the home market.From this analysis we can clearly see that there are both positive and negative aspects of GDSD. For Fextrax to succeed in GDSD they should consider the following guidelines3:
1.One