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result(s) for
"Computer software industry Subcontracting."
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Commodification of Industrial Software: A Case for Open Source
As open source development's acceptance has increased, many companies have incorporated it into heterogeneous development, which creates products by combining software that's from many sources and built with many different processes. To be effective, heterogeneous development must bridge the gap between industrial and open source software (OSS) development practices. One aspect of this approach is inner-source development, which aims to deploy key aspects of OSS development within a limited scope - for example, a division, a company, or even a consortium. So, industrial software development must be extended with knowledge of how to cooperate in open source and inner-source communities. To compete successfully, software-intensive companies will need to adopt new forms of collaborative development involving open source software.
Journal Article
Empirical Analysis of the Effect of an Evidence-Based Policy for a Wicked Problem—Lessons Learned from the South Korean Industry Policy History for the Structural Reform of Subcontracting Practice in the Software Industry
The highly concentrated and stratified subcontracting structure, which successfully led to efficient production and excessive exports in South Korean manufacturing industries, represented by automobiles and heavy machinery, had difficulty replicating the same success in the software industry. In 2016, the government put a policy to reform the subcontracting structure to simplify the hierarchy and promote horizontal collaboration. We discuss the impact and implications through panel difference-in-differences analysis from 2013 to 2018 based on integrated dyadic transaction and financial data of 2,665 South Korean local software firms. Our research confirmed the effectiveness of the industrial structure reform policy. In our assessment of evidence-based policymaking, we focus on the often-overlooked perspective of the subcontractors. By comprehensively synthesising various industrial structure theories, the present study found that the optimal subcontracting collaboration structure differs according to the characteristics of industries. Also, designing evidence-based policies, even for wicked problems involving conflicting stakeholders, can obtain the expected outcomes if the policy-makers secure good evidence and support intermediary organisations such as cooperatives and associations.
Journal Article
Cluster Capabilities or Ethnic Ties? Location Choice by Foreign and Domestic Entrants in the Services Offshoring Industry in India
We contrast the knowledge spillovers perspective, which focuses on the externalities that arise from locating in a cluster, with the social ties perspective, which emphasizes resource flow through ethnic connections, arguing that these factors differentially influence the location decisions of foreign and domestic entrants in the services-offshoring industry in India. We develop a typology of the capabilities involved in the offshoring of services and, using 108 location decisions across 11 city clusters, find that ethnic networks exert greater influence than cluster capabilities on location decisions, although, as expected, the effect is stronger and more widespread in the case of Indian rather than foreign firms.
Journal Article
Organisational restructuring and emerging service value chains: implications for work and employment
This article examines companies' and public sector organisations' external restructuring processes, with consideration of emerging or lengthening value chains and network relationships in the service sector. Focusing on two business functions — software development in the IT industry and IT services for public sector organisations — the article describes the types of inter-organisational relations that emerge and analyses the impact of restructuring on employment conditions and work organisation. The business functions clearly differ according to the form that restructuring takes and with regard to the impact of restructuring on work and employment. Common trends include increased insecurity, growing flexibility demands and higher levels of standardisation and formalisation of work.
Journal Article
Synching or sinking: global software outsourcing relationships
Global software outsourcing is the outsourcing of software development to subcontractors outside the client organization's home country, India is the leading GSO subcontractor, registering average annual growth of more than 40 percent over the last decade and developing nearly US4 billion in software for foreign clients in FY 1999. Indian firms now develop software for nearly one-third of the Fortune 5002. The authors investigate the strategies that differentiate successful and unsuccessful value chain moves.
Journal Article
Who Captures Value in Global Supply Chains? Case Nokia N95 Smartphone
Available statistics reveal little about the economic consequences of the increasing global dispersion of production processes. To investigate the issue, we perform grass-roots investigative work to uncover the geography of the value added for a
Nokia N95
smartphone circa 2007. The phone was assembled in Finland and China. When the device was assembled and sold in Europe, the value-added share of Europe (EU-27) rose to 68%. Even when it was assembled in China and sold in the United States, Europe captured as much as 51% of the value added, despite of the fact that it played little role in supplying the physical components. Our analysis illustrates that international trade statistics can be misleading; the capture of value added is largely detached from the flow of physical goods. Instead, services and other intangible aspects of the supply chain dominate. While final assembly—commanding 2% of the value added in our case—has increasingly moved offshore, the developed countries continue to capture most of the value added generated by global supply chains.
Journal Article
Economic Development Strategies and Macro- and Micro-Level Human Resource Policies: The Case of India's \Outsourcing\ Industry
This detailed case study of India's \"outsourcing\" industry illustrates the challenges in linking macro and micro human resource policies with an economic development strategy based on export-oriented services. The rapid expansion in the outsourcing of services to India has raised the possibility that this sector will be a key engine of India's economic growth. Based on extensive field research carried out over a four-year period, the authors of this study argue that four interrelated human resource policy challenges threaten the outsourcing industry's growth: two \"macro\" problems (current skill shortages and the inability of the country to produce higher levels of skills for the long-term growth and sustainability of the industry), and two micro problems (very high levels of employee turnover and rapidly increasing employee costs). The authors evaluate current policy responses and suggest options.
Journal Article
The Stability of Offshore Outsourcing Relationships: The Role of Relation Specificity and Client Control
Offshore outsourcing of administrative and technical services has become a mainstream business practice. Increasing commoditization of business services and growing client experience with outsourcing have created a range of competitive service delivery options for client firms. Yet, data from the Offshoring Research Network (ORN) suggests that, despite increasing market options and growing client expectations related to service quality and cost efficiency, clients typically renew provider contracts and develop longer-term relationships with providers. Based on ORN data, this paper explores drivers of this phenomenon. The findings suggest that providers promote contract renewal by making client specific investments in software, IT infrastructure and training, and by involving clients in outsourcing operations, thereby increasing relation specific joint equity and creating opportunities for client monitoring and control. Interestingly, these strategies apply to routine rather than knowledge-intensive tasks, and are more likely to be applied by large rather than small providers. Surprisingly, high degree of contract specification makes contract renewal less likely. The paper contributes to the growing literature on strategic outsourcing of business services and the importance of governance mechanisms addressing ``hidden costs'' as well as ``hidden benefits'' of offshore outsourcing relationships.
Journal Article
Impacts of Risk and Service Type on Nearshore and Offshore Investment Location Decisions: An Empirical Approach
Offshoring of services has gained considerable attention in management circles. However, little empirical research has explored the emerging sourcing alternative of nearshoring, despite the fact that firms situate about one out of five projects abroad in a nearshore location as opposed to an offshore location. We empirically assess the impact of economic and risk factors regarding firms' services location choices between offshoring and nearshoring. We find these factors influence firm decision-making regarding services offshoring location choices, and that these factors are more or less important to firms depending on whether the firm offshores relatively higher versus relatively lower skill services. Offshoring firms appear willing to trade off some gains in one area (lower wages) to mitigate costs in others (higher risk), and that the factors that drive nearshoring are qualitatively different than those that influence offshoring.
Journal Article