Published on March 31, 2008
PrestigeSoft : PrestigeSoft PrestigeSoft is $7m US-based company Within the PrestigeSoft’s niche, time-to-market is very critical Entire programming unit in Sofia, Bulgaria Develops low-end, low-cost consumer software packages Most projects are completed on time for market PrestigeSoft: PrestigeSoft Success factors Learn how to work with each other The products themselves are very small Ability to take advantage of the ten-hour time difference between the US and Bulgaria for rapid iterations Orchestral Technologies: Orchestral Technologies A major US-based company that specializes in graphical software Have joint venture in Moscow, Russia Moscow staff perform the traditional job of offshore programming. Write codes from spec and develops small components for larger products in California Expanded to St. Petersburg Orchestral Technology: Orchestral Technology Business Developments The Russian site was tasked to developed a large (one million lines of code) brand new product (release 1.0) A global team was lunched into this large scale collaborative project with sites St. Petersburg (Russia), California (headquarters), Denver (US, consultant), Regina (Canada). Design was shared by California and Moscow Code was shipped back and forth (across 11 time zone) everyday during the coding phase Orchestral Technology: Orchestral Technology Factors Software configuration team was set up at each site A policy was instituted whereby code would lock up at 8pm at either California or Russian offices and nothing further could be added to it. Transfer of the codes after an hour by satellite to the other team Programmers coordinate code sharing via detailed, formalized notes to each other Programmers don’t work on exactly same code Orchestral Technology: Orchestral Technology Result Completed on time At a lower cost No immediate follow-up bug release Acquired Software African development site was added to the setup IBM Global Development: IBM Global Development Five-site, Five-country, development project with the round-the-clock aspirations The project involved developing small components for the IBM VisualAge application development environment The idea was to develop many small components called – beans, where each bean will be developed rapidly Fatware vs. component-based beans The IBM JavaBeans was envisioned to be plugged together and used to develop functional business applications IBM Global Development: IBM Global Development Organization Structure Multi-sites with four equal size units of 31 professionals Joint venture of Tsinghua University in Beijin, China IBM Tata joint venture in Bangalore, India, later wholly owned IBM Global services – India. IBM joint venture firm with the institute of Computer Science in Minsk, Balarus, and Privately owned SWH Group in Riga, Latvia. Why 31 developers at each site? IBM Global Development: IBM Global Development Phalanx “Close formation of specimen carrying overlapping shields” A close-knit or compact body of people, especially, one unified by a common goal” Example, a bone of a finger. IBM Global Development: IBM Global Development IBM Phalanx (Team Structure) In each site there where five core specialist area of five people each in such areas The vision was to create a reusable team structure The central group is in Settle, US with 24-person to: Initiate, review, allocate, and provide specialized services The Settle team played the dual role of both architect and users. Project management and other services were also centralized in the US site including QA and user interface specialists. Slide11: Source: Erran Carmel JavaBeans project IBM Global Development: IBM Global Development Development Method Follow-the-Sun Product specification and development was to be iterative, until completion US command unit would set up a work specification for each JavaBean and assigned it to an offshore site, to be turn into code by the end of the day and ship it back to the US for successive rounds of review and feedback After reviewing and testing the code the US unit would specify new changes and send those back across the ocean for another iteration This was to done on daily bases IBM Global Development: IBM Global Development Challenges and Outcome Daily turn around was too hard to achieve on daily bases for both sides Changed to two code drops from each remote site per week About half a dozen beans were assigned to each site So while Beijing is waiting for the review and feedback on component #1, they worked on beans #2..#6. At steady state, the project was juggling about two dozen beans between the hub and the remote sites IBM Global Development : IBM Global Development Changes in Team Structure The original project champion (US-based) left in mid 1997. The new project manager saw the entire project in a different way. That: A true global development should not be strongly centralized but more more of a network organization structure In which global partners coordinate more activities among themselves rather than through a central unit A large control unit in the US defeats the purpose of a low-cost development project Slide15: Changes The US command unit was moved from Settle to IBM development center in Raleigh, North Carolina Reduced from 24 people to only 3 (Global manager, budget officer and a chief technical architect) US site is now a project management unit responsible for oversight and some review function With the new structure the non-US sites began to initiate the projects IBM Global Development: IBM Global Development Results and Challenges The US hub’s overall workload was reduced significantly The Minsk site became responsible for the acceptance testing and integration for all beans (in addition to some of its own development) Hub delegate tasks to other sites, and follow-the-sun-was de-emphasized and no longer practical. Occasionally time zone advantages still took place. IBM Global Development: IBM Global Development Result and challenges Simultaneous development in five nations with inexperienced partners. Project objective was to build leading –edge technology (i.e. software components) while experimenting with a new management model JavaBeans are small components that are easier to define and for which the development time is short. Once finished it is able to communicate with other beans. If too many beans are been developed at the same time integration and coordination could become a problem IBM Global Development: IBM Global Development Global Development Justifications Compelling reason was to take advantage of low cost development centers $8,000-$15,000/programmer/year 10% of the cost in US Plus travel costs, etc. To reduce time to Market using follow-the-sun Estimated 35% cycle time reduction before the project structure changed Nevertheless, beans development allows for very rapid development Is the global development project a fruitful project? IBM Global Development: IBM Global Development Hidden Goal Cost and time-to-market for this project were not the only strategic drivers of the IBM JavaBeans project IBM was seeking a strong presences in all of these emerging markets in order to develop a strong base of developers who have experience working with IBM on important projects. This would allow IBM to continue to expand in these markets China, in particular, was an important market for IBM. All five sites were connected via local internet provider to IBM global network. Tools used include Lotus Notes and other collaborative technologies. Slide20: Largest American IT Professional Services Firms: Massive offshore centers Mexico, India, Argentina, Brazil, Latvia, Hungary, others Calcutta, Korea India, Canada, Brazil, Ireland, others Manila Are Global Software Teams Successful: Are Global Software Teams Successful Success is measure by four key parameters Was the product delivered on time? Was cost reduced? Was the product Innovative? Was the product relatively free of bugs and according to specifications? Are Global Software Teams Successful: Are Global Software Teams Successful Was the product delivered on time Follow-the-sun development may not reduce the cycle time for some projects True follow-the-sun requires a great amount of communications and understanding True follow-the-sun with daily hand offs is very difficult for programming, particularly programs involving any complexity Works with customer support issues and bug fixing Are Global Software Teams Successful: Are Global Software Teams Successful Were development costs reduced? Travel and hotel Communication set up Are Global Software Teams Successful: Are Global Software Teams Successful Was the product innovative? Higher level design Full ownership of key products New initiatives from global site that later turn into a product Are Global Software Teams Successful: Are Global Software Teams Successful Was the product relatively free of bugs and according to specifications Home country often take responsibility for testing Development standards are often higher with global teams Are Global Software Teams Successful: Are Global Software Teams Successful Largest American Firms: Massive offshore centers India About $400 million per year; 1800 people in 99 Mexico Chennai India 700-1000 staff, launched in 2001, handling CAD/CAM, e-mail processing, and application development GE Are Global Software Teams Successful: India Exporting $6 billion in software services and products. Producing about 50,000 new, well-trained software engineers per year Are Global Software Teams Successful Are Global Software Teams Successful: Are Global Software Teams Successful Israel Exporting $15 billion in high-tech. 2000+ high-tech firms (larger than any nation except for USA). More off-shore American R&D centers than any other nation. 40,000 IT professionals Are Global Software Teams Successful: Are Global Software Teams Successful Russia Much smaller IT sector than the 3 I’s ranks 3rd in the world in scientists and engineers MNCs: Intel, Motorola , Sun, others Concentrated in, Moscow, St. Petersburg, and Novosibirsk about 100-160 firms– none are large Wages 20%> India Weaknesses: Lack of experience in managing the complexity of high level quality processes, especially over distance. Poor English skills Access to Russia -- The need for visas. Expensive bandwidth Lack of quality certification firms Legal issues: software piracy, export and import, taxation, labor law, company registration, currency control. Are Global Software Teams Successful: Are Global Software Teams Successful Ireland Isle of localization and call centers 25000 software professionals with 3000 now coming out per year Source: McCaffrey 99, Cochran 01 Slide31: Are Global Software Teams Successful? Slide32: What is your predictions for Global Software Teams?