Beyond Cost Reduction: Using Collaboration to Increase Innovation in Global Software Development Projects

Most firms engage in outsourcing of software development to lower costs. Several years ago we began working with firms that were using global partners to increase innovation in product development. These firms were able to deliver product capabilities beyond those that could be generated inside their own organization. They were not just outsourcing to reduce costs; instead they were leveraging their global partners to increase the value of their products for their customers. This paper provides an overview of the results from our six-month study. The goal was to understand the successful practices used to achieve innovation in new product development projects between leading technology firms and their global software development partners.