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restructuring costs, 37, 39 Software AG, 21, 85
retention, 37, 39, 57, 62, 125, 208 software architecture, 14, 15, 17, 102, 172
rewards. See measure and reward systems software automation, 7
risk reduction, 8, 30, 39, 49, 54, 56, 59, 87, 106, 142 Software Engineering Institute (SEI), 16
RiteChoice Technologies, 269 software licensing, 37, 43, 62, 64, 67, 85, 113, 126
Rolta, 206 software park. See technology park
Romania, 32, 61, 86, 238 software piracy. See intellectual property
round the clock. See follow the sun software product, 47, 49, 51, 98, 204, 239, 269
Russia, 20, 74, 95, 116, 155, 166, 220, 231, 239 Software Services Support and Education Centre
culture, 177, 178, 190 (3SE), 239
labor supply, 77, 82, 221 software speci¬cation, 14, 38, 52, 56, 58, 64, 113,
quality, 16, 83 133, 134, 139, 160
software exports, 82 Software Technology Park (STP), 212
wages, 32, 33 Softwin, 86
Russoft (Russia), 238 Sogeti, 59
Solidcare Systems, 31
Safe Harbor scheme, 117 Sony, 88, 175
Safeway, 21, 87 South Africa, 29, 30, 32, 49, 74, 76, 205, 216, 218
Sahay, S., 254 South Korea, 28, 70, 178
salaries. See costs of labor Soviet Union, 3, 82, 85, 238
Sand Hill Group, 38, 40 Spain, 74, 102, 117, 163, 166, 207, 226, 235
SAP, 21, 193, 199 speci¬cation. See software speci¬cation
Sasken Communication Technologies, 269 speed. See time-to-completion
Satyam, 109, 221, 222 SPI Technologies, 206
Scacchi, W., 160 spillover effects, 207
Schafer, L.E., 183, 187 Sri Lanka, 29, 70, 204, 231
Schumacher, P., 93 St. Petersburg, 190, 238
scope de¬nition document, 58, 62, 64 staff augmentation, 106
search and contract costs. See extra costs of standardization, 4, 7, 14, 29, 139, 154, 160, 174
offshoring Standish Group, 40
Securicor, 87 start-small strategy, 9, 37, 58
security risks, 48, 49, 52, 62, 87, 105, 109 startup company, 4, 11, 31, 51
SEK Studio, 207 Statement of Work, 188, 189
seminar, 55, 136, 137, 225, 231, 232 STM chip maker, 95
Senegal, 205 Strassman, P.A., 102
service level agreement (SLA), 121, 127, 128, 133, strategic offshoring, 9, 36, 41, 93, 96, 111
141, 143, 145 stumble-and-then-succeed, 35, 41
severance payments, 114 subcontractor, 122, 124
Shanghai, 21, 22, 99, 214 Subramanian, R., 193
shared services model, 263 subsidiary, 29, 35, 48, 71, 72, 89, 96, 104, 106, 109,
Shell, 23 119, 203
Shenzhen, 105, 214 Sun, 82, 85
Siemens, 8, 21, 85, 86, 161 Surinam, 24
Sigma Indonesia, 23, 217 sweatshop, 48, 199
Signum, 204 Sweden, 23, 69, 82, 183
281 Index


Swissair, 23, 29 Total Cost of Engagement (TCE), 35
switching costs, 107 Total Cost of Offshoring (TCO), 35
Switzerland, 5, 23, 70, 116, 155, 200, 206 Total Savings of Offshore Strategy (TSOS), 35, 36, 40
SWOT analysis, 224, 228, 229 TPI, 260
Symantec, 85 trade fair, 51, 55, 202, 225, 230, 238
synchronization, 154, 155 trade restriction. See export restriction
systems inventory. See project selection trade secrets protection, 113
Systems Ltd., 215 trade union, 7, 57, 114, 178, 241
training, 42, 56, 57, 132, 166, 202. See also
tacit knowledge, 37, 131, 132, 133 intercultural training
Taiwan, 6, 20, 76, 247 transaction processing services, 204
talent, 4, 10, 20, 48, 72, 83, 98, 111, 217, 247. transactions costs. See extra costs of offshoring
See also labor supply Transactions Costs Theory, 34, 35
Tata Consultancy Services (TCS), 21, 26, 29, 31, 87, transition economies, 24, 69, 86, 238
107, 109, 208, 209, 220, 221, 232 transitioning of work offshore, 34, 130
tax incentives, 3, 75, 76, 84, 202, 213 translation, 38, 56, 181, 183
tax preparation services, 28 travel, 37, 39, 53, 55, 56, 61, 127, 135, 159, 160, 175
taxes, 33, 76, 112, 118, 120 TRIPS agreement, 113
team, 167, 195 trust, 13, 21, 65, 67, 115, 141, 148, 153, 158,
cohesion, 150 220, 235
culture, 153, 154, 157 Tumbleweed, 35
multi site, 194 Tunisia, 205, 216, 231
trust, 153 Turkey, 74, 175, 226
website, 163 turn-key. See build operate transfer (BOT)
technological diversi¬cation, 99 turnover rates. See attrition
technology park, 3, 4, 76, 88, 202, 211, 214, 215,
216 UBS Warburg, 21
techno-nationalism, 247 Ukraine, 32, 70, 239
telecommunication, 52, 62, 209, 211, 215 uncertainty orientation, 178
bandwidth, 4 uni¬ed modeling language (UML), 77
costs, 4, 29, 37, 88 Unilever, 99
risks, 48 Union Bank of Switzerland, 23
VoIP, 4, 37, 204 United Kingdom, 20, 28, 32, 69, 166
teleconferencing. See telephone culture, 181, 182
Telefonica, 117 market for offshore services, 21, 220
telemarketing services, 28 United Nations Conference on Trade and
telephone, 12, 59, 89, 152, 155, 156, 159, 162, 163, Development (UNCTAD), 199
170, 174, 184, 185, 186 United Nations Development Programme
termination, 107, 125, 141 (UNDP), 240
terrorism, 45, 48, 74, 128, 261 United Nations Industrial Development Organization
Tesco, 21 (UNIDO), 240
testing, 14, 15, 58, 89, 110, 160 United States, 25, 32, 88, 163, 166, 200, 233
Thailand, 6, 61, 74, 231, 239 culture, 177, 178, 180, 182, 189
Tier-1 software nations. See Mature Software job losses, 30, 241
Exporting Nations labor supply, 25
Tier-2 software nations. See Emerging Software market for offshore services, 19, 226
Exporting Nations offshore users, 9, 17, 54, 61, 63, 103
Tier-3 software nations. See Infant Software political backlash, 48
Exporting Nations R&D, 16, 84
Tilburg University, 130 universalist orientation, 179
time and materials pricing method, 64, 126 universities. See education
time orientation, 179 University of Warwick, 190
time zone differences, 27, 61, 78, 87, 97, 149, 152, usability, 133, 134, 193
160, 163, 188 USAID, 239
time-to-completion, 10, 11, 41, 57, 96, 97, 102, 191 user satisfaction, 38, 57, 128, 222
Tjia, P., 256, 272 user-interface design. See usability
toll-free number, 29 Utrecht University, 193
282 Index


Vajpayee, A.B., 245 Welch, J., 94, 108
ValiCert, 35 Wells, J., 256
Valtech, 27 Wendt, G., 108
Value Leadership Group, 93 whiteboard, 12, 164
values and beliefs. See cultural differences Wipro, 21, 27, 80, 96, 104, 109, 209, 221, 222
vendor selection. See provider selection WNS Global Services, 100, 204
venture capital, 4, 31, 84, 86, 104, 215, 239 work hours, 161, 162, 163, 174, 194, 224
Versendaal, J., 193 work¬‚ow, 156, 157, 161, 162, 164, 167, 170
video-conferencing, 155, 157, 158, 164, 165, working conditions, 89, 178, 199, 208
184, 186 World Bank, 199, 201, 215, 237, 240
Vietnam, 6, 28, 32, 33, 34, 61, 70, 74, 77, 87, 88, World Distribution Nepal, 237
200, 207, 211, 212, 213, 215, 231 World Information Technology and Services
Vinasa (Vietnam), 88 Association (WITSA), 271
virtual caf©, 158 WTO agreements, 243
virtual corporation, 102, 166
visa and work permits, 21, 61, 86, 106, 115, 235 Xansa, 27, 220
voice over IP (VoIP). See telecommmunication Xerox, 85

wage differences, 4, 6, 32, 56, 87, 203, 213. See also Y2K, 19, 138, 204, 220, 228
costs of labor Yugoslavia, 28, 75
Wal-Mart, 132
war, 45, 46, 74, 75, 128, 204 Zara, 102
Warburg Pincus, 100 Zenith Electronics, 10, 94
website, 55, 63, 224, 225 Zensar Technologies, 105

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