Insights into embedded software sourcing decisions: practical concerns and business perspectives

Embedded software provides product functionality, and can be found increasingly in a variety of domestic and industrial products such as mobile phones, washing machines, television sets, industrial robots, and instrumentation. Whist embedded software shares many similarities with PC-based application software, a number of factors such as its application environment, dynamic complexity, and interaction with other devices makes it distinctive. Embedded software development teams are often faced with the dilemma of which development path to adopt, and how to balance a complex array of both qualitative and quantitative decision factors. These factors range from technical issues such as architecture modularity and choice of operating systems, to more generic business issues such as supplier relationships and project management. Studies on embedded software sourcing and development practices have only just begun compared to PC-based software and IT systems. This paper presents a contextual background of the characteristics of embedded software and discusses why embedded software is different from PC-based software. Building on this understanding, a rationale for developing a better understanding of embedded software sourcing decisions is highlighted. Drawing on sources of literature dealing with PC-based software and hardware sourcing decisions, and learning obtained from a number of industrial consultations, a list of relevant factors for such decisions is developed.