Global means:

1

• Global means
• Having a presence in other countries
• Standardization
• International focus reduction of ties to any
  one
• country and community
• - Minimization of country-oriented images and
  values
• Having acquisitions or alliances in other
  countries

2
Catalysts for Global Software Teams 1.
Specialized Talent Send the work to where the
resources are 2. Mergers and acquisitions Ente
r a foreign market quickly 3. Reduction in
cost Reduce labor costs offshore 4. Global
presence Participate in global markets 5.
Reduction in time-to-market Follow-the-sun
development 6. Proximity to the
customer Establish an ongoing relationship with
key customers
3
Five forces that make Global IT management
very difficult 1. Geographic dispersion 2.
Loss of communication richness 3. Coordination
breakdown 4. Loss of teamness, the sense of
belonging to a team 5. Cultural differences
4
Global Software Teams Problems

• Dispersion

30 20 10 10
Probability of communication at least once a week
25 50
100
Separation distance (in meters)
5
Loss of Communication Richness
FACE-TO-FACE
SENSUALNESS
VIDEO CONFERENCING
TELEPHONE
EMAIL
US MAIL
INTERACTIVENESS / IMMEDIACY
6
Coordination Breakdown
Increasing Complexity with Larger Teams
2 1
4 6
6 15
7
Coordination Breakdown Team Size / Number of
Relationships
NUMBER OF COMBINATIONS n (n - 1) / 2 n
size of the project team
8
Loss of Teamness TO BE A TEAM YOU MUST
HAVE SHARED GOALS SHARED CULTURE
SHARED PERSONAL RELATIONSHIPS
9
Loss of Teamness
TEAM BUILDINGTRUST CLASSIC DEVELOPMENT
PERFORMING TEAM WORKS TOGETHER TOWARD A COMMON GOAL. CONFLICTS ARE HANDLED CONSTRUCTIVELY
NORMING TEAM BEGINS TO FORM NORMS, ROLES, AND PROTOCOLS FOR WORKING TOGETHER
STORMING CONFLICT BREAKS OUT OVER ROLES, OBJECTIVES, AND TASK ALLOCATION. DIFFERENT PEOPLE ARE PURSUING DIFFERENT GOALS.
FORMING TEAM GETS TOGETHER AND GETS TO KNOW EACH OTHER
10
Loss of Teamness
Comparison of Behavior/Strategies of High
and Low Trust Teams
Behavior/Strategy High-Trust Teams Low-Trust Teams
Style of Action Proactive Reactive
Focus of Dialog Task Output Driven Procedural
Team Spirit Optimistic Pessimistic
Leadership Dynamic Static
Task-Goal Clarity Teams Responsibility Individuals Responsibility
Role Division and Specificity Emergent and Interdependent Assigned, Independent
Time Management Explicit/Process-Based Nonexistant
Pattern of Interaction Frequent, Few Gaps Infrequent, Gaps
Nature of Feedback Predictable, substantive Unpredictable, nonsubstantive
11
YOUR EXPERIENCE IS THE CLASSIC MODEL OF TRUST
CONSISTENT WITH YOUR EXPERIENCE AS A TEAM MEMBER
AT DEPAUL OR ELSEWHERE . . . TOM PETERS (IN
SEARCH OF EXCELLENCE) SAID A CUSTOMER
RELATIONSHIP IS STRONGER AFTER A PROBLEM HAS
BEEN HANDLED WELL THAN IF NO PROBLEM HAD
OCCURRED. IS THIS CONSISTENT WITH YOUR
EXPERIENCE?
12
FACE-TO-FACE MAINTAINS/RENEWS
TRUST MILESTONE MEETING / CELEBRATION SHARE
THE VISION WHATS THE GOAL OF THE PROJECT AND
HOW DOES EACH PART OF THE TEAM FIT
IN SOCIAL GET TO KNOW ABOUT EACH OTHER MORE /
AGAIN. BUILD SHARED EXPERIENCES.
13
CULTURE BELIEF/VALUES/COMMUNICATION
Reward
BELIEFS
VALUES
COMMUNICATION
Social organization Nonverbal communication Emotio
nal response
Competition Independence Risk-taking Group
harmony Cooperation Age-seniority Information Devo
tion Interrelationship Family harmony Formality/st
atus
Life/Death Nature History Religion
14
People who speak 3 languages trilingual 2
languages bilingual 1 language American
15
In Heaven, The Police are British, The Cooks are
French, The Lovers are Italian, and Its all
Organized by the Germans In Hell, The Police
are French, The Cooks are British, The Lovers are
German, and Its all Organized by the Italians.
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CULTURE AND SUBCULTURES
NATIONAL CULTURE
PROFESSIONAL CULTURE
CORPORATE CULTURE
FUNCTIONAL CULTURE
RELIGION?
TEAM CULTURE
RACE?
GENDER?
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DIMENSIONS OF IT CULTURE Exercise Rank these
countries (USA, Japan, Hong Kong, Germany) and
these characteristics from highest to lowest.
Revering hierarchy Example USA Japan
Hong Kong Germany Individualism/collectiv
ism Work-life/Personal-life Risk
avoidance Long term orientation
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DIMENSIONS OF IT CULTURE and IT Revering
hierarchy ? Organization of the IT Department
Individualism/collectivism ? IT Reward
Systems Work-life/Personal-life ? Online,
Oncall, 24x7 Risk avoidance ? Quality v.
schedule ? Technological change Long term
orientation ? Technological change
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FACE-TO-FACE BUILDS TRUST KICK-OFF
MEETING SHARE THE VISION WHATS THE GOAL OF
THE PROJECT AND HOW DOES EACH PART OF THE TEAM
FIT IN METHODOLOGY WHAT METHODOLOGY
PROCESS/FRAMEWORK WILL WE USE COMMUNICATION H
OW SHOULD THE TEAM COMMUNICATE CULTURE IN WHAT
WAYS ARE WE DIFFERENT AND IN WHAT WAYS ARE WE
THE SAME SOCIAL GET TO KNOW ABOUT EACH OTHER.
BUILD SHARED EXPERIENCES. IF YOU TELL PEOPLE
CLEARLY WHAT YOU WANT YOU HAVE A MUCH BETTER
CHANCE OF GETTING IT THAN IF YOU DONT.
21
OUTSOURCING
22
Outsourcing a management tool (a tool
makes work easier and/or more productive)
emphasizes what is to be done, rather than how or
who task-level management responsibilities
rest with supplier work takes place
mainly/entirely off site supplier provides
all resources employee relations managed by
supplier typically paid by performance not
time
23

• OUTSOURCING DRIVERS
• RE-FOCUS ON CORPORATE CORE COMPETENCIES
• - SHIFT IN BUSINESS STRATEGIES AWAY FROM
  DIVERSIFICATION
• - SENIOR EXECUTIVES VIEW IT AS A NON-CORE
  ACTIVITY
• PERCEPTION OF IT AS A COST BURDEN
• UNCERTAINTY ABOUT ITS VALUE
• IT FAILED TO DELIVER THE PROMISE OF COMPETITIVE
  ADVANTAGE

24
Outsourcing Drivers Cost savings (especially
offshore) Outside the core business
Functionally discrete Lack of internal
skills Political compromise
25
FACTORS FAVORING IT OUTSOURCING TECHNOLOGY
CHANGE EXPANDS OPTIONS - MANY INFORMATION
PRODUCTS/SERVICES BECOME COMMODITIES - SEPARATION
OF MANAGEMENT, OPERATION, AND DELIVERY OF
INFORMATION SERVICES - FIRMS CAN NOT COPE WITH
RAPID ADVANCEMENT OF TECHNOLOGY AND SKILL
REQUIREMENTS CHANGES IN THE MANAGEMENT OF IT -
DIFFICULTY IN MEASURING BENEFITS FROM AN IT
INVESTMENT AND ITS COST CIOs TAKING A
BUSINESSVIEW, NOT JUST A TECHNICAL
VIEW DECENTRALIZATION OF THE IT ORGANIZATION
INDUSTRY LEVEL CHANGES - RAPID TECHNOLOGICAL
CHANGE CREATED OVER CAPACITY IN CERTAIN
FUNCTIONS - THE NUMBER OF OUTSOURCING VENDORS
INCREASED OFFERING PRICE COMPETITIVE SERVICES -
OUTSOURCING VENDORS HAVE FLEXIBILITY IN
RECRUITING AND REWARDING TECHNICAL TALENT
FIRM LEVEL CHANGES - CORPORATE IMPERATIVE TO
REDUCE COSTS - GLOBALIZATION OF BUSINESS CREATES
NEW NEEDS
26
3 CATEGORIES OF OUTSOURCING
TOTAL OUTSOURCE ALL IT SELECTIVE OUTSOURCE
SELECTED ACTIVITIES TRANSITIONAL OUTSOURCE
LEGACY SYSTEMS WHILE WORKING ON NEW SYSTEMS
27
TOTAL OUTSOURCING ADVANTAGES -CONSISTENC
Y AND STABILITY WITH THE SAME VENDOR FOR MANY
ACTIVITIES -LOWER TRANSACTION
COSTS DISADVANTAGES -VULNERABLE TO VENDOR
MANIPULATION OF PRICING AND MAINTENANCE
COSTS -VULNERABLE TO LOSS OF VENDOR
SUPPORT -----------------------------------------
--------------------------------------------------
--------- SELECTIVE OUTSOURCING ADVANTAGES -SELE
CT BEST-OF-BREED FOR AN ACTIVITY -CREATE A
COMPETITIVE ENVIRONMENT -FLEXIBLE ADAPT TO
CHANGE -CAPITALIZE ON ORGANIZATIONAL
LEARNING -LESS RISKY THAN TOTAL
OUTSOURCING DISADVANTAGES -MULTIPLE VENDORS TO
MANAGE -HIGHER TRANSACTION COSTS ASSOCIATED WITH
MULTIPLE EVALUATIONS AND CONTRACT NEGOTIATIONS
28
TRANSITIONAL OUTSOURCING ADVANTAGES -OUTSOURCE
LEGACY SYSTEMS MAKES STAFF FREE TO FOCUS ON NEW
SYSTEMS -LEGACY SYSTEMS ARE MATURE AND CUSTOMERS
AND VENDORS UNDERSTAND REQUIREMENTS AND CAN WRITE
A SOUND CONTRACT DISADVANTAGES -VULNERABLE TO
VENDOR MANIPULATION OF PRICING AND MAINTENANCE
COSTS -VULNERABLE TO LOSS OF VENDOR SUPPORT IF
NEW SYSTEM IS DELAYED
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• MEASURES OF OUTSOURCING SUCCESS
• TARGETED COST SAVINGS REALIZED OF BETTER
• SERVICE LEVELS MAINTAINED OR IMPROVED
• USER MANAGEMENT SATISFIED
• FEW CLIENT/VENDOR DISPUTES
• VENDOR REPRESENTATIVES RESPONSIVE/ATTENTIVE
• OUTCOMES MATCH OBJECTIVES
• LIKELY CONTRACT RENEWAL

30
Popular Outsourced Activities Application
development Data center Desktop/personal
computers Network (e.g., LANs, WANs) Support
services/help desk Training
31
OUTSOURCING PITFALLS Cumbersome transition into
and coming out of an outsourcing relationship.
Incomplete or vague contracts. Lack of an
infrastructure for supporting an outsourcing
relationship. Negotiating a contract with an
unsuitable vendor. Poor communications with
vendors.
32
PERSISTENT OUTSOURCING PROBLEMS Cultural
differences that lead to miscommunications and a
lack of trust Time zone differences Poor
English language skills Strange foreign
work-hour regulations High employee turnover in
India Difficulties in arranging visas for
foreign professionals to work in the United
States An offshore units lack of domain
knowledge An unreliable telecommunications
infrastructure.
33
Outsourcing should not occur if the
service is mission critical the service can
be done more effectively in-house
outsourcing cannot provide a savings of five
percent or more fear exists over losing
controls.
34
THE OUTSOURCING PROCESS
35
STAGES OF OUTSOURCING
36
Offshore Outsourcing Readiness vs. Attractiveness
Ready but not attractive
Ready and attractive
High
Offshore Readiness
Not attractive and not ready
Attractive but not ready
Low
Offshore Attractiveness
Low
High
37
Who is Henri Fayol? A French engineer
who Defined the functions of management
Planning Organizing Leading
Controlling And identified 14 principles of
management Specialization/division of labor
Authority with responsibility Discipline
Unity of command Unity of direction
Subordination of special interests
Remuneration Centralization Chain / Line of
Authority Order Equity Lifetime jobs (for
good workers) Equity Esprit de corps