1. Impact of Globalization and Outsourcing of Software Development.
Julie Petrusa
Nuzhat Jilani
Loay Qasem
Yuhuai Zhang

2. What Is Outsourcing?
Outsourcing refers to the process by which companies use external providers or external entities (such as a subcontractors) to manage or maintain certain aspects of their company's business.

3. Communication In Outsourcing:.
Teleconferencing.
Regular site visits by senior outsourcers.

4. Advantages of Outsourcing Software Development
Reduction in cost
Can save money in intangible areas such as employee benefits.
Money saved can then be reinvested in other areas.
Economic gains and increased competitiveness.

5. Advantages .... Improved efficiency Addition of outside expertise
More control, can cancel contract if the quality is not satisfactory.
Eliminates hiring, training of staff, and dealing with problem employees.
More time to concentrate on other areas
Addition of outside expertise
Brings expertise that is not available in current employees.
Productivity may increase

6. Disadvantages of Outsourcing Software Development
Communication problems
Differences in language and cultural background.
No knowledge of existing technical environment and domain.
Difficulties in managing the outsourcing process
Loss of flexibility and ability to respond quickly to new demands because of locked contracts.

7. Disadvantages …. Loss of direct knowledge within a company
Loss of loyal and knowledgeable employees.
Staff morale suffers as positions are reduced or eliminated.

8. Cost versus Quality
A comprehensive quality program can be economical in the long run.
Customer satisfaction, maintenance, and support all have to be considered.
Emphasis on thorough testing.

9. Standardization Capability Maturity Model: Useful to a certain extent.
Consulting companies evaluate and grade contractors according to CMM specifications.
CMM scores can be deceptive.

10. Important Considerations
Success stories from the source companies
Local technical expertise & project management
Proven track record on software projects similar to the outsourcing firm’s project
Separate contractors for Development and QA

11. Legal Issues Legal Issues In Overseas Software Development :
Intellectual Property (IP) protection
Labor and employee rights
Export control restriction
Privacy and data security restriction

12. Legal Issues Intellectual Property protection
IP laws vary from country to country
Examples of IP theft
Suggestions:
understand IP laws in both countries
use the combination of laws and good contracts
protect confidential information properly.

13. Legal Issues Labor and Employment Rights Export Control Restrictions
-- may not be allowed to outsource overseas
-- may need permission first.
Privacy and Data Transfer Restrictions
-- violation may lead to lawsuits, fines, or damage business reputation.

14. Thanks