[Globalization] SIIA Report on Global Software Development Shows Importance to Business Growth
2007/01/12
[F]fully two- thirds of companies who work offshore claim the quality of work is above average when compared to onshore staff, with 25% rating the quality as “excellent” or “outstanding.”
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The Software & Information Industry Association, the principal trade association for the code and content industry, today announced the release of a major survey and report on the current state of global software development.
A sampling of the research results highlights indicates that companies are increasing their global development efforts. 57% of the participants have significantly increased offshore work in the past 18 months and many plan to add still more in the next 18 months. Growth strategy was cited as an “important” or “critical” driver for 84% of respondents, while increasing speed to market and productivity were the next most important drivers. No single business model was cited as optimum for offshore development, with roughly half of respondents working with an offshore provider, a third operating a subsidiary or captive, and a quarter employing a hybrid model of both approaches.
Major findings from the survey, developed with assistance from Symphony Services, a global product engineering outsourcer, include updated information on the type of work being done offshore; the drivers for globalization — such as growth strategy and increasing speed to market and productivity; and the fact that companies are achieving their desired goals in current offshoring projects.
“Global software development is in the process of transforming the nature of the US software industry,” said Ken Wasch, SIIA President. “Our survey covers many of the influences on and results of this sea change.”
Research Objectives and Results The specific objectives of the research were to determine: * The overall impact of global software development on companies * The current use of various business models * Global software development’s impact on productivity * The success of offshoring activities * Challenges associated with global software development * Attitudes of companies not currently offshoring * Potential future changes in global software development
Respondents claim to be achieving 80-100% of their cost savings goals. While gains in productivity appear to be less than expected, 73% of respondents reported a positive impact on profits. In addition, fully two- thirds of companies who work offshore claim the quality of work is above average when compared to onshore staff, with 25% rating the quality as “excellent” or “outstanding.”
Copies of the report are available free to press upon request and to SIIA members from the SIIA web site at siia.net. Non-members may purchase the report from the SIIA eStore for $395.
About SIIA
The Software & Information Industry Association (SIIA) is the principal trade association for the software and digital content industry. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to more than 800 leading software and information companies.
SIIA’s Software Division provides a neutral business forum for companies that develop the applications, services, infrastructure and tools that drive the software and services industry. The Division’s programs support member business development through networking, partnerships, industry exposure and strategic insight on the issues and trends of the industry. For further information, visit siia.net.
About Symphony Services
Symphony Services is a global provider of product engineering outsourcing services dedicated to helping clients compress time to market, achieve higher innovation yields and improve productivity to increase the value from their R&D investments. The company is distinguished by a singular focus on product development and collaborative, end-to-end solutions for independent software vendors, software-enabled businesses and embedded companies. For further information, please visit symphonyservices.com.
Software & Information Industry Association
CONTACT: David Thomas of SIIA, +1-408-884-3962, dthomas@siia.net; or Ben
Farrell of The Horn Group, +1-540-290-9602, bfarrell@horngroup.com, for SIIA
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