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Chile, 74 incentive-based, 107
China, 4, 28, 29, 73, 99, 110, 115, 119, 205, 211, negotiation, 55, 110
213, 242, 248 risks, 48
culture, 177, 178 termination, 125
domestic market, 5, 72, 82, 99, 105 contractor, 17, 24, 126, 138, 183
labor supply, 4, 77, 81, 212, 246 control, 12, 40, 45, 46, 102, 104, 118, 120, 121, 124,
linkages, 208, 217 126, 130, 139, 140, 141, 152
quality, 16 conversion, 19, 58, 204, 206
R&D, 20, 82, 166 coordination. See project coordination
software exports, 81 COPC (Customer Operations Performance
wages, 6, 32, 33, 61 Centre), 209
churn, 234, 243 copyright. See patent
Cisco, 47, 81, 82, 84, 88, 104 Cordys, 23, 193
Citibank, 29, 100 core competency, 15, 48, 99, 101, 102, 103, 111
client relationship management, 141 corruption, 48, 89, 104, 237
Clinton, Hillary, 243 co-sourcing model, 263
Clockwork, 75 cost savings, 9, 18, 29, 31, 36, 40, 56, 57, 59, 72, 78,
clustering, 70, 72, 73, 98, 150, 203, 214 89, 94, 103, 107, 111, 139
co-authoring, 167 Cost Strategy Stage, 9, 94, 95. See also Offshore
coding. See programming Stage Model
275 Index


Costa Rica, 70, 74, 76, 89, 203, 211, 216 digitizing, 28, 206
costs disaster recovery center, 62, 122, 216
of governance, 39 dispute resolution, 48, 125, 129
of labor, 31, 32, 40 distributed collaboration, 130, 131, 149, 154, 155,
of offshoring. See extra costs of offshoring 160, 162, 164, 172, 175
of rent, 33, 42, 83, 227 diversi¬cation, 111
of telecommunication. See telecommunication Dobbs, Lou, 241
country risks, 29, 45, 49, 71, 74 document imaging, 59, 206
country selection, 60, 61, 71, 72, 73, 77 documentation, 42, 46, 57, 59, 89, 131, 132, 133,
creativity, 64, 158, 195 148, 160
credit card processing, 28 domain knowledge. See business domain knowledge
Cr©dit Suisse, 23 domestic market, 83, 86, 218, 220
Crimsonwing, 87 Dresdner Bank, 22
cross cultural communication. See communication, due diligence, 56, 65, 123, 236
culture
CSC, 27, 223 Eastern Software Systems, 215, 269
Cuba, 49, 70, 200, 237 Ebene CyberCity, 216
cultural differences, 13, 52, 61, 65, 133, 142, 153, e-bookers, 100
170, 172, 175, 180, 190, 192, 194, 234 Ecuador, 204
cultural training. See intercultural training EDS, 8, 27, 85, 223
Cummings, J.N., 149 education, 72, 79, 87, 88, 202, 208, 211, 212, 214, 246
currency risk, 45, 74, 119 ef¬ciency. See productivity
customer interaction services, 28, 29, 30, 205 Egypt, 8, 70, 215, 216, 219, 231, 237
Cusumano, M., 17 Eisner, R., 112
Czech Republic, 27, 28, 73, 219 El Salvador, 70
electrical power, 62, 202, 215
Dakor, 206 E-loan, 28
Daksh E-services, 29 e-mail, 161, 164, 184, 186
Dalian, 28 disadvantages, 151, 152, 179
dashboard, 142, 157 overload, 156
data entry, 28, 204, 206 war, 170
data security, 47, 115, 116 embedded software, 8, 31, 41, 47, 81, 95, 96, 98
data transfer restriction, 115, 116, 117 Emerging Software Exporting Nations, 70, 71, 200,
DATI, 86 206, 219
deadline, 60, 64, 168, 170, 179, 191 employee bene¬ts, 33
Decos, 24 employee selection, 149, 170, 171, 194
delivery manager, 145 Employee Stock Option Plan (ESOP), 208
Dell, 30 end user interaction, 141, 142
Deloitte Consulting, 40, 242 engineering services, 28, 204
Delta Air Lines, 29 English, 38, 81, 84, 86, 88, 186, 213, 224
demonstration project, 57, 136, 137 linguistic linkage, 87, 108, 183, 216
dependency, 172 entrepreneurial, 5, 84, 209, 214, 248
design task, 5, 7, 14, 15, 141, 152, 155, 160, 172 EPAM, 220
Designco, 237 Ericsson, 23
destiny orientation, 179 errors. See bugs
Deutsche Bank, 22, 96 escalation of problems, 129, 141, 157
Deutsche Telekom, 86 escrow, 123
developing countries, 24, 69, 88 Espinosa, A., 34, 161
domestic software demand, 217, 218 Estonia, 28, 242
government policy, 211 ethics, 17, 232, 235, 238
national ICT strategy, 200 e-touch, 159
risks, 45 euro conversion, 19, 220
software export, 199, 208 Europe, 30, 47, 81, 85, 86, 88, 116, 239, 246
development methodology, 62, 77, 155, 159 culture, 20, 234
development task, 6, 11, 14, 103, 152 market for offshore services, 20, 225, 233
Dhaka, 217 offshore users, 17, 27, 40
digital divide, 209 visa and work permits, 61, 114
276 Index


European Bank for Reconstruction and Development General Motors, 8
(EBRD), 240 geographic information systems (GIS), 206
European IT Service Center (EITSC), 239 Georgia, 239
European Union Data Privacy Directive, 116, 243 Germany, 21, 28, 69, 177, 178, 179, 200, 216, 235,
EXL India, 108 242, 246
expatriate, 159, 186, 226, 227, 228, 229, 240 Ghana, 30, 205
Experimental Stage, 8, 58, 95, 107, 234. See also Gillette, 108
Offshore Stage Model Glass Egg, 215
explicit knowledge, 131, 179 global manufacturing, 5, 6, 102, 199
export of software packages, 204 global networks of software producers, 7, 30, 99
export restriction, 49, 85, 115, 124 Global Savvy, 183, 187
export revenues, 70, 80, 81, 82, 86, 88, 89 global software teams. See distributed collaboration
external expertise. See consultants global sourcing, 19, 30, 93
externalities. See spillover effects global sourcing unit, 136
extra costs of offshoring, 36, 39, 40, 56, 141 global supply chain, 7, 8, 30
Extreme Programming (XP), 159, 160 globalization, 3, 24, 69, 207, 243
Google, 20
face-to-face contact, 12, 133, 149, 151, 158, 159, governance, 122, 130, 140, 141, 142
165 costs. See extra costs of offshoring
failures, 35, 48, 51, 52, 130, 139, 154, 172, 181, 220 government regulatory changes, 45, 75
fatalism. See destiny orientation government support, 76, 82, 201
Fedesoft (Colombia), 238 GPI Consultancy, 256, 260
Fiat, 30 Gramm-Leach-Bliley Act, 115
¬nancial research, 28 Granstrand, O., 99
¬nancial risk, 45, 105 Gurgaon, 214
Financial Times, 232
Finland, 23, 28, 69, 183, 242 H1-B work permit, 114
Fiorina, C., 244 Hall, E T., 176, 189
¬xed price pricing method, 64, 77, 126, 128 harmony, 178
Flexcube, 100 Harvey Nash, 88
¬‚exibility, 10, 53, 54, 62, 96, 126 HCL Technologies, 29, 104, 221, 227
Florida, R., 217 Health Insurance Portability and Accountability Act
Flying Geese Formation, 6 (HIPAA), 115
follow the sun, 11, 97 Heeks, R., 252
foreign direct investment (FDI), 3, 71, 72, 76, 84, helpdesk, 28, 29, 30, 110, 141, 205
211, 215 Herbsleb, J.D., 154, 158, 172
formalisms and informalisms, 154, 158, 174 Hewlett-Packard, 27, 34, 84, 244
Forrester, 10, 30, 241, 242 hidden costs. See extra costs of offshoring
Fortune 1000 companies, 10, 20, 39, 40, 41, 187 hierarchy, 62, 148, 177, 185, 195, 235
FPT Vietnam, 88 high piracy nations, 217
France, 27, 69, 163, 177, 178, 179, 205, 207, 216, high-context, 179, 189
235, 243 Hira, R., 106, 241
free publicity, 232, 237, 245 Hofstede, G., 175, 176, 177, 178
free trade, 242 holiday, 33, 161, 164, 237
friendship, 104, 178, 179 Hong Kong, 82, 164, 177, 178
Fujitsu, 21, 27 HR offshoring, 28
fully burdened employee costs, 33, 35, 42 HSBC, 29, 241
Function Point, 38, 59 Huawei, 47, 82, 163
functional expertise. See business domain knowledge human capital, 71, 79, 80, 81, 202, 211, 212.
future orientation, 178 See also labor supply
fuzzy knowledge. See tacit knowledge human resources management (HR), 56, 57, 62,
136, 171
GAAP, 209 Hungary, 27, 28, 74, 222
Gartner Group, 18, 38, 39, 40 Hyderabad, 20, 23, 109, 193, 209, 214, 236
Gates, Bill, 246
GE Capital International Services (GECIS), 110 I.n.d.i.a., 51
General Electric, 18, 29, 46, 107, 108, 110, 136 I2, 20
277 Index


IBM, 8, 11, 19, 27, 29, 31, 33, 69, 75, 84, 85, 88, International Intellectual Property Institute (IIPI),
105, 107, 137, 203, 211, 244 262
ICI, 21 international product cycle, 5
IDC, 18, 25 International Trade Centre UNCTAD/WTO (ITC),
i-¬‚ex solutions, 100, 105, 269 221, 240
iGate, 109 Internet, 79, 157, 160, 164, 220
Immelt, J., 110 intifadah, 75
immigration laws. See visa and work permits iPod, 98
implementation, 55, 57, 131, 142 Iran, 24, 49, 200, 211, 212, 226, 231
incentives, 3, 25, 64, 67, 76, 89, 107, 142 Iraq, 75
India, 6, 60, 61, 88, 95, 99, 110, 135, 166, 190, 193, Ireland, 6, 20, 32, 74, 76, 84, 166, 204, 208,
205, 206, 207, 213, 231, 239, 242 213, 245
brand recognition, 79, 236 ISO 9000 or 9001, 6, 62, 88, 127, 132, 142, 209
country risks, 75, 110, 116, 117, 118 Israel, 5, 6, 20, 24, 32, 33, 61, 74, 76, 84, 164, 166,
culture, 177, 178, 179, 181 177, 178, 204, 213, 215
government policy, 76, 211, 212 IT Ukraine, 238
labor supply, 80, 111, 212 IT Worx, 215
linkages, 208 ITAA (IT Association of America), 18, 244
offshore clients, 17, 24, 29, 31, 54, 59, 77, 98, Italy, 28, 69, 207, 235
108, 137, 146, 199 IT-enabled services (ITES), 28, 73, 86, 90, 93, 100,
quality, 16, 99, 101, 224 110, 204, 205, 241
R&D, 11 job creation, 208, 269
software exports, 208 market size, 18, 80
Tier-1 ¬rms, 26, 27, 33, 80, 166, 214, 221, 234 risks, 30
wages, 32, 33, 213 iteration, 154, 155, 174
Indian Institute of Technology (IIT), 80, 193 ITIL (IT Infrastructure Library), 142
individualism, 177, 178
Indo-German Export Promotion project (IGEP), 238 Jamaica, 206, 212, 237, 239
Indonesia, 32, 61, 70, 177, 178, 200, 211, 212, 213, Japan, 7, 16, 17, 28, 32, 69, 81, 88, 117, 177, 178,
216, 219, 228, 231, 237 180, 200, 246, 248
Indus, 109 job creation, 207, 208, 244, 269
Infant Software Exporting Nations, 70, 71, 200, job losses, 7, 30, 114, 137, 241, 242, 243, 248
206, 219 Johansson, C., 183
Infobalt, 237, 238 joint venture, 105, 109, 120, 124, 172
information society objectives, 200 jokes, 181
information-processing orientation, 180 Jordan, 70, 216, 231, 238, 239
Infosys, 22, 33, 35, 98, 104, 209, 216, 220, 221, Jos© Mariá Castro Madriz, ¬rst president of
222, 236 Costa Rica, 199
infrastructure, 53, 62, 215
complexity, 54 Kale Consulting, 100
costs, 37, 43, 73, 213 Karnataka, 236
quality, 48, 86, 87 Kaspersky Labs, 82
infrastructure management, 131, 141, 142, 146, 222 Kerry, John, 242
innovation, 9, 10, 11, 41, 203, 214, 245, 248 kick-off meeting, 158
instant messaging (IM), 78, 156, 164, 165, 186 Kiesler, S., 149
insurance claims processing, 28, 206 KLM, 23
Intaj (Jordan), 238 knowledge loss, 45, 47, 49, 103, 125
integration, 14, 15, 59, 102, 131, 155, 222 knowledge management systems, 131, 165, 174, 266
Intel, 82, 84, 89, 98, 103, 107, 153, 166, 168, 169 knowledge seekers, 11
Intellect UK, 60, 235 knowledge transfer (KT), 43, 57, 65, 99, 104, 106,
intellectual property (IP), 46, 47, 49, 61, 62, 67, 73, 130, 131, 148, 194, 204, 209
78, 103, 112, 113, 217, 235, 248 costs, 37, 38
Inter-American Development Bank (IDB), 240 dif¬culties, 51, 125, 134
intercultural training, 38, 62, 171, 187, 195, 234 lead time, 56, 131
internal assessment. See offshore readiness linkages, 216
internal support, 52, 55, 58, 66, 137 travel, 38, 59
International Finance Corporation (IFC), 215 Kolkata, 217
278 Index


Kotlarsky, J., 190 local base, 222, 223, 227, 229
Krishna, S., 255 perseverance, 220
Kuala Lumpur, 29, 73 Marks & Spencer, 21
Massey, A.P., 184
Mastek, 200, 226, 232
labor and employment laws, 21, 114. See also visa
matchmaking, 202, 239
and work permits
Mature Software Exporting Nations, 69, 70, 200
labor arbitrage. See costs of labor
Mauritius, 29, 30, 46, 205, 216, 226
labor savings. See cost savings
Mayer, Brown, Rowe & Maw, 112
labor shortage, 18, 51, 93
MBEA management by e-mailing around, 170
labor supply, 4, 11, 25, 33, 41, 72, 73, 80, 82, 85, 98,
MBFA management by ¬‚ying around, 158, 170
202, 212, 246
MBWA management by walking around, 12, 152, 158
Lane, K., 108
McKinsey, 237, 244
language, 21, 52, 61, 62, 73, 86, 87, 88, 99, 172, 182,
measure and reward systems, 57, 136, 140
185, 186, 187, 206, 213
media richness, 165
Latvia, 85
medical transcriptions, 28, 206
launch team, 53, 55, 64, 66, 68
meetings, 51, 65, 154, 155, 157, 162, 164, 235
learning curve, 36, 38, 139
Mehta, Dewang, 237
Lebanon, 231
Meta Group, 10, 39
legacy systems, 59, 139
Metatude, 51, 61
Leveraging Offshore Stage, 10, 95, 96. See also
metrics, 42, 54, 59, 96
Offshore Stage Model
Mexico, 8, 28, 32, 70, 74, 76, 183, 200, 205, 216,
liaison role, 67, 159, 161, 162
218, 219, 231, 243
liberalization, 243, 245
Microsoft, 7, 20, 69, 81, 84, 85, 99, 103, 117, 133,
Libya, 49
171, 175, 199, 204
licensing. See software licensing
milestone, 36, 59, 124, 170
Lieberman, J., 248
mirror organization, 172
linkages, 216
miscommunication, 11, 12, 13, 30, 135, 152, 153,
ethnic, 104, 216, 222, 226, 229
172, 181, 186, 189
geographic, 216, 226. See also nearshore
Morgan Chambers, 260
historical, 21, 86, 87, 108, 183, 213, 216
Morocco, 205, 216, 231
Linux, 159
Morrison, S., 110
Lithuania, 237, 238
Motorola, 8, 13, 16, 81, 82, 83, 103
Litta (Latvia), 86, 238
multimedia, 22, 28, 168
Lizatec, 190
Multimedia Super Corridor, 73, 214
Lloyd™s, 21
multiple nations sourcing, 46, 54
localization, 69, 72, 85, 99, 111
multiple providers, 54, 106, 110, 122, 139, 234, 260
location attractiveness index, 73
multi-teaming, 166, 167
LogicaCMG, 27
Mumbai, 87, 109, 193, 214
London Underground, 21
Murthy, N., 98
long-term orientation. See future orientation
low-context, 179, 189, 190
Nanjing Software Export Alliance, 214
Lucent, 163
NASDAQ, 84, 215
Lufthansa, 22, 30, 96
NASSCOM, 29, 214, 236, 237, 239, 245
Luxoft, 16, 83
national culture, 131, 175, 180
national ICT strategy, 200, 204
Magnolia Communications, 40 national IT association, 60, 66, 202, 214, 227, 232,
maintenance, 14, 34, 38, 42, 58, 65, 121, 132, 138 236, 238, 239
Malaysia, 6, 27, 29, 61, 70, 73, 76, 116, 166, 200, nearshore, 22, 27, 39, 61, 86, 87, 216, 226
214, 231 NEC, 28
Malta, 87, 237 negotiation, 55, 67, 77, 117, 124, 152, 235
management, 12, 44, 58, 63, 67, 71, 138, 167, 170, neoIT, 260
177, 224. See also project management Nepal, 34, 61, 200, 214, 237, 239
market research services, 28 Nestl©, 23
marketing of offshore services, 219, 224 Netherlands, The, 21, 25, 60, 69, 200, 243
business discussions, 232, 235 culture, 177, 178, 235
external assistance, 202, 225, 238 market for offshoring, 226, 232
lead generation, 230, 231 offshore users, 23, 59, 89, 190, 235
279 Index


New Adonis, 239 Philippines, 4, 29, 30, 32, 61, 70, 74, 76, 116, 166,
New Balance, 102 200, 204, 205, 206, 207, 212, 213, 216, 219
New Delhi, 109, 242 Philips, 23, 30, 31
new market access, 5, 72, 99 photographs of offshore service providers, 22, 23
new revenue generation, 10, 100, 104, 111 PIIT (Poland), 238
New Zealand, 74 pilot project, 17, 57, 58, 59, 77, 121
newly industrialized countries (NICs), 6 piracy. See Intellectual Property (IP)
Nicholson, B., 254 plant and mechanical design, 206
NIIT, 59, 87 PMBOK (Project Management Body of Knowledge),
Nike, 102 142
Nisbett, R. E., 180 Poland, 27, 28, 30, 32, 74, 146
Nokia, 23, 82, 242 Politec Brazil, 23
non-resident Indians (NRIs), 216 political backlash, 48, 118, 137, 233, 241
Nortel, 88 political instability. See country risks
North American Free Trade Agreement, 243 Portal Player, 98
North Korea, 24, 28, 61, 178, 206, 207 Portugal, 74
power orientation, 175, 177, 185
preferred suppliers, 234, 260. See also multiple
Offshore Bystander, 8, 95, 233. See also Offshore
providers
Stage Model
Premji, A., 209
offshore champion, 55, 136, 138, 216, 233, 234
privacy laws, 115, 116, 117
offshore development center (ODC), 105, 111
problem solving, 12, 59, 77, 141, 150, 152, 173
offshore readiness, 53, 54
Procter & Gamble, 30, 206
Offshore Stage Model, 8, 9, 10, 58, 94, 107, 233
procurement management methodology, 53
offshore strategy, 56, 93, 108. See also strategic
productivity, 7, 37, 38, 39, 42, 44, 59, 65
offshoring
programming, 14, 17, 58, 69, 141, 160
offshore transition. See transitioning of work
project
offshore
coordination, 11, 12, 152
onion layer team, 172
duration, 11
online marketplaces, 26, 34, 60, 228, 261
location, 172
onshore charge rate. See charge rate
management, 38, 52, 53, 54, 139, 167
onshore/offshore balance, 13, 14, 34, 39, 43, 57, 59,
selection, 57, 58, 62, 102, 136
94, 95, 106, 133, 139, 140
size, 59
Open Source Software (OSS), 88, 159, 173
Project Management Of¬ce (PMO), 144
Oracle, 20, 85, 193, 199
protectionism, 7, 242
Orbys Consulting, 260
prototype, 11, 58, 59, 97
organizational change, 100, 136, 208
provider selection, 35, 37, 55, 58, 60, 62, 65, 77, 122
organizational design, 149, 172
proximity, 149, 150
outsourcing, 53, 93, 96, 100, 102, 103, 120, 121, 129
to markets, 222, 227
out-tasking, 72, 103
to users, 14, 27
Oval Model, 210
public relations (PR). See free publicity
Ovum Holway, 258
public-private partnerships, 202
Pune, 24, 212
P&O Nedlloyd, 21 purchasing power parity (PPP), 32
PA Consulting, 260 Pyongyang, 207
packaged software. See software product
Pakistan, 24, 32, 48, 54, 61, 70, 75, 118, 146, 200, quality assurance, 52, 59, 62, 89, 110, 128, 202, 221
213, 215, 238 quality of life, 209, 217
Palestine, 75, 239 Quest, 109
Paris Convention, 113
particularist orientation, 179 R&D, 76, 93, 95, 98, 106, 166, 171
Pasha (Pakistan), 238 budget, 40
patent, 98, 109, 112, 170, 203 China, 81
Patni, 109, 221 India, 20, 80, 84, 96, 111
penalty, 64, 67, 115 innovation, 24, 203
People-CMM, 62, 208 Russia, 82, 106
Perot Systems, 96 rate. See charge rate
philanthropy, 209 recruitment of staff, 104, 105, 106
280 Index


Reebok, 102 Silicon Valley, 19, 31, 35, 63, 80, 98, 99, 150, 208,
Reed Elsevier, 206 214, 217, 227, 247
re-engineering processes, 101, 111 Singapore, 32, 46, 73, 76
references, 65, 229, 230 site visit, 51, 53, 56, 61, 65, 187, 234
relationship orientation, 177, 178, 268 situation awareness, 156
repository, 59, 156, 157, 160, 165 Six Sigma, 16, 62, 142, 209
representative. See agent skills transfer. See knowledge transfer
request for information (RFI), 63, 66 Slovakia, 231
request for proposal (RFP), 51, 64, 120, 135, 235 small- and medium-sized ¬rms (SMEs), 12, 18, 21,
requirements. See software speci¬cation 24, 63, 76, 221, 226
resistance to offshoring, 57, 66, 135, 136, 233, 242 social facilitation effect, 149
response time, 57 Softex Brazil, 227

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