Technology Issues and Opportunities for Global Value Chains Global systems technology Challenges  Connectivity  Overcoming disparate national technical standards, data exchange restriction and service levels  User of internet technology to create global intranets, extranets, virtual private networks

Technology Issues and Opportunities for Global Value Chains Global systems technology Challenges  Software  cost of new interface designs  integrating new systems with old  User interface design  Differences in languages and conventions  Offshore Software Outsourcing  Outsourcing portion of new systems like development work or maintenance of existing systems to external vendors in another country

Technology Issues and Opportunities for Global Value Chains Major cost components of offshore development: 1.Contract cost 2.Vendor selection costs 3.Transition management and knowledge costs 4.Domestic human resources cost 5.Costs of improving software development processes 6.Costs of adjusting to cultural differences 7.Costs of managing an offshore contract

Technology Issues and Opportunities for Global Value Chains Total cost of outsourcing