BUS 550 Case Analysis Bora Kim

1. The Giant Awakens: Sheen Software Systems Considers China for Offshore I.T. Outsourcing.&The Impact of TimeSeparation on Coordinationin Global Software Teams:a Conceptual Foundation BUS 550 Case Analysis Bora Kim

2. IT Outsourcing An act of delegating or transferring some or all of the IT related decision making rights, business processes, internal activities, and services to external providers, who develop, manage, and administer these activities in accordance with agreed upon deliverables, performance standards and outputs, as set forth in the contractual agreement.

3. Sheen Software System • Offshore IT outsourcing from China • Current: • Provides IT support to its customers though providing customized solutions for business and entertainment business. • Customer: • Large corporate clients such as Disney and 20th Century Fox • Regional in Metropolitan Los Angeles

4. Future Strategy for Growth • Agile Methodology (“lightweight methodology”) • Lots of end user involvement • Utilize strength of China • Taking advantage of Chinese programmers who are educated in computer science programs with tradition of theory and algorithm development.

5. Agile Software Development

6. Benefits of Offshore IT Outsourcing • Low transportation costs and delivery time • Geographic dispersion which enables access to specialized software talent and technical resources • Management can identify and allocate its key resources, and utilize resources efficiently to build a competitive advantage – focus on core competencies • Reduce time to market and improve flexibility to respond to the changing demand and business environment, predictable outcome, and high degree of success

7. Challenge/Risk: Time Separation • Time separation = the amount of overlapping work time in which the team can interact synchronously • Cost • Choice of interaction mode

8. Challenge: Time Separation • Time Separation is more than just Time-zone Differences • Workday differences (i.e. start and ending times of workday) • Weekend differences (i.e. weekend days vary) • Holiday differences (i.e. religious and national holidays) • Lunch and other break hours (e.g. American break for lunch earlier than many other cultures).

9. Challenge: Time Separation (COST) • Production • The costs of carrying out the task coordination costs • Communication • The costs of maintaining communication links and sending and receiving messages. • Delay • The costs incurred because one group is waiting for another to begin their work day. • Clarification • The additional cost of communication and delay due to prior miscommunication • Rework • The additional costs of production due to miscommunication

10. Tactics to Overcome Time Separation • Asynchronous • Use of asynchronous technologies • Formalization of activities • Bunch-and-batch • Break the e-mail chain • Synchronous • Shift dialogue to overlap time and independent work to asynchronous time • Expand overlap window by working longer • Expand overlap window by shifting work hours • Expand overlap window by always being available • Create liaison roles with adjusted hours that expand overlap window of only • those individuals rather than the entire team • Education • Build awareness • Create easy access to current time, calendar, and holiday schedule of distant actor(s)

11. Global Team Configuration • Non-tactical Practices to Overcome Time Separation: • Follow-the-sun (round-the-clock) • Purposeful positioning of a companion site within closely overlapping time zones.

12. Recommended Practices for Sheen Software System • Complete project management control • Liaison • Measurement system for performance • Optimization of business process • Configuration management system • Organize workdays

13. Questions 1. Which is NOT part of benefits of offshore IT outsourcing? • Very low transportation cost • Access to specialized software talent and technical resources • Focus on core activities • Reduce time to market and improve flexibility to respond to the changing demand and business environment, predictable outcome, and high degree of success • None of the above

14. Questions 2. Tactics used to overcome cost associated with time separation are: • Synchronous • Asynchronous • Follow-the-sun • Education

15. Questions 3. Which is NOT cost associated with Time Separation? • Production cost • Delay cost • Rework cost • Clarification cost • Separation cost

16. References • Balakrishnan, S. D. (2006). Risks, Benefits, and Challenges in Global IT Outsourcing: Perspectives and Practices. Journal of Global Information Management, 14 (3), 39-63. • Carmel, E. (2011, April 26). The Internet and Time Zones. • Carmel, J. A. (2004). The impact of Time Separation on Coordination in Global Software Teams: a Conceptual Foundation. Software Process Improvement and Practice , 1-19. • Carmel, P. E. (2013, January 1). Distance is Dead, Time is Not. (E. Kaganer, Interviewer) • Erik Beulen, V. T. (2011). Understanding Transition Performance during Offshore IT outsourcing. Strategic Outsourcing: an International Journal, 4 (3), 204-227. • The Giant Awakens: Sheen Software Systems Considers China for Offshore I.T. Outsourcing. (2003). 1-5.