Business Strategy for Software Executives
April 2 , 2007
Globalize R&D without Outsourcing
Rather than offshoring or operating a captive center, software vendors should turn to globalized product development through “insourcing” to realize long term benefits.
By Peter Harrison, GlobalLogic
Software companies would have to be crazy to “outsource” their research and development (R&D). Throwing core intellectual property (IP) back and forth over a wall and monitoring performance against predetermined specifications won’t deliver a competitive advantage.
The same goes for putting a few executives on a plane, landing in India and starting the process to launch a captive development center in the region. Competing for talent is more difficult than ever and the rigors of managing across the globe often wipe out anticipated economic benefits.
Software companies need to leverage global product development opportunities through a new model: globalization through insourcing. This new category of services is fundamentally and genetically different than prior outsourcing and offshoring models – and it will deliver a sustainable business advantage for the software vendors who take advantage of it.
China vs. India: A Think Tank Perspective
It is fashionable for IT experts to pit India against China in the battle for offshoring business. In the latest post to his SandHill.com Blog, “Letter from China,” David Scott Lewis surveys the latest research and analysis on the China vs. India conundrum and wonders why China isn’t on the radar of more software companies.
Linux Desktops Gain Traction
HP, Dell and Novell have all announced advances in the Linux desktop market in the last few weeks. Guy Smith of Silicon Strategies Marketing compiles the latest evidence of growing demand for Linux desktops in this week’s post to the SandHill.com Blog on open source.
The Impact of Shai’s Departure
S. Sadagopan takes a closer look at what Shai Agassi brought to SAP and what his departure will mean for the company in this week’s post to his SandHill.com Blog, The Deep End.
Publish Your Perspective!
The SandHill.com Blog wants your opinions. Send your thoughts on the enterprise software industry to firstname.lastname@example.org and we’ll publish them in our blog.
DON’T MISS: Global Capital Markets: Europe on the Rise
A recent analysis of the world's financial markets shows the U.S. is still on top but that the Eurozone countries are wielding ever more influence. Read the latest analysis from McKinsey & Co. in this article from The McKinsey Quarterly.
News Update: Shai’s Shocker
SAP's wunderkind walks and the industry speculates; plus, Vista breaks a record, Google Apps breaks down and H&F breaks news. Read these stories and more software news of the week in the latest SandHill.com Software News Summary.
Poll: A Shai-less SAP?
How will Shai Agassi’s departure impact the future of SAP? What do you think?
Last week, readers gave their opinions as to the significance of Oracle’s big quarter.
More at SandHill.com:
Picking up the pieces at SAP.
Streamcore System receives $7 million.
Microsoft buying DoubleClick?
Pitney Bowes names Murray Martin as CEO.
Send us your feedback on this newsletter and the SandHill.com site.
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