Software Pulse

Business Strategy for Software Executives

April 2 , 2007

Peter Harrison

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.


Hasso Plattner to Open Software 2007
SAPís Chairman Will Deliver First Keynote

The co-founder of SAP, Hasso Plattner will deliver the opening keynote at Software 2007. Now chairman of the company’s supervisory board, Plattner rarely speaks at industry events. Don’t miss this opportunity to hear this industry visionary speak about SAP’s future strategy and commitment to innovation. Register today for Software 2007, May 8 and 9 in Santa Clara, Calif.

China vs. India: A Think Tank Perspective

Vinnie MirchandaniIt is fashionable for IT experts to pit India against China in the battle for offshoring business. In the latest post to his 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 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 Blog, The Deep End.

Publish Your Perspective!

The Blog wants your opinions. Send your thoughts on the enterprise software industry to and we’ll publish them in our blog.

New Podcast: India Ascending’s M.R. Rangaswami and globe-trotting industry veteran, Bruce Richardson of AMR Research discuss and debate their recent trip to India and the Nasscom conference. Click here to listen and gain on-the-ground insight about the latest changes in India.

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 Software News Summary.

Poll: A Shai-less SAP?

How will Shai Agassi’s departure impact the future of SAP? What do you think?
Take our Pulse Poll >>

Last week, readers gave their opinions as to the significance of Oracle’s big quarter.
Give us your opinion and see the results >>

More at

Picking up the pieces at SAP.
Read the most important enterprise software industry news of the week >>

Streamcore System receives $7 million.
Monitor the latest software venture capital deals >>

Microsoft buying DoubleClick?
Size up last week's software M&A deals >>

Pitney Bowes names Murray Martin as CEO.
See who's made it to the top in our list of recent software executive appointments >>

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Parting Thought

“The trouble is, if you don't risk anything, you risk even more.”
–Erica Jong

Courtesy of Malcolm Kusher, The Kushner Group