Managing Global Software

Engineering: A Comparative Analysis

of Offshore Outsourcing and the
Internal Offshoring of Software
Development
Rafael Prikladnicki and Jorge Luis
Nicolas Audy
 Introduction
The goal of the authors was to examine and
contrast the practice and processes of several
companies involved in the two offshoring
business models described.
What are the main differences among the
existing GSE business models and in particular
the differences between the offshore
outsourcing and the internal offshoring of
software development?
Global software engineering (GSE)
GSE has attracted a large research effort in
software engineering (Boehm, 2006; Carmel,
Prikladnicki, Evaristo, Audy, & Yamaguti, 2006)
When organizations search for external
solutions in other countries, we have what the
literature defines as the offshoring of software
development (Carmel, & Tjia, 2005; Robinson,
& Kalakota, 2004)
 The Two Main Business Models
1. Offshore Outsourcing - contracting services
with an external organization located in
another country
2. Internal Offshoring - contracting with a
wholly-owned subsidiary also located in
another country
 BUSINESS MODEL

Business models for GSE (adapted from OECD, 2004; Prikladnicki et al., 2007;
Robinson & Kalakota, 2004).
 Method
A qualitative case study research
design (Yin, 2003) to examine
software development in
organizations employing the two GSE
models.
Respondents Profile
Respondents Profile
 Structure Analysis
1. Technical aspects are related to the use of tools,
methods, data, and processes required by a project or
a process.
2. Organizational aspects are related to organization
structure, responsibilities and role, and general
operating principles and methods of an organization.
3. Contextual aspects are related to the self-
management, coordination, communication, and
interpersonal abilities needed to successfully perform
in the organizational and social context of a project

Chrissis, Konrad, and Shrum (2006)

Results and Discussion
Results and Discussion
Results and Discussion
Results and Discussion
Results and Discussion
Results and Discussion
Results and Discussion
Results and Discussion
Results and Discussion
Results and Discussion