Optimizing Supplier Management in Global Software Engineering

Global software engineering is the consequence of the rather friction-free economic principles of the entire software industry. Many companies start global software engineering (GSE) due to perceived cost differences. Most of these companies engage globally active outsourcing companies to achieve fastest ramp-up of their globalization targets. After a while into that business they realize that savings are much smaller and problems are more difficult to cure than before. Disillusioned many abandon their GSE activities. What has gotten wrong? GSE bears many challenges, specifically if done with an external supplier. We will look in this article to lessons learned from GSE to effectively and successfully manage supplier relationships. Specifically we use process maturity and CMMI as a guidance how to improve supplier relationships. Both experiences and practical guidance result from our work with clients in automotive and telecommunication industries. They can be readily implemented, specifically our checklists for effective supplier management.