Introduction:
Software development today no longer has geographic limits: we see software produced anywhere in the world, 24 hours a day, 7 days a week of the year. The dynamics of the global software trade in terms of workflow, product movement and professional mobility is undoubtedly global. In order to adapt to this new scenario, pioneering companies are using their knowledge of the global software and information technology economy to:
- Set up strategic alliances on a transnational scale Make offshore investments in underdeveloped countries and carefully calibrate the cost and performance parameters involved in these movements.
Thus, work in the form of software development and maintenance can flow freely from the most efficient provider and with the most effective mechanism regardless of the time zone or national border of the country of origin. If we consider that software engineering is a core competency of the information age, from a national or global point of view, the same type of information is critical to maintaining or advancing competitive positioning.
Parameters
Considering the basic dimensions of management that are necessary to compete on the global stage, obviously being able to take advantage of the economies and efficiencies in software productivity and its remote administration is key. An interesting study by Howard Rubin has revealed some parameters like the ones mentioned below.
Cost per Line of Code (LOC) Developed in USD
- Switzerland: 27 Germany: 22 Japan: 21 United States: 18 France: 13 United Kingdom: 11 Israel: 11 Italy: 10 Ireland: 10 India: 5
Defects per 1000 LOC's
- United States: 1.6 Japan: 1.8 United Kingdom: 2.1 Germany: 2.2 Israel: 2.3 Switzerland: 2.5 France: 2.5 Italy: 2.5 India: 2.6 Ireland: 3.7
And Who Wins?
We can clearly see how India has the upper hand in this global competitive battle. Not for less, the total costs per LOC are extremely lower than those of Switzerland, for example. However the defects per 1000 LOCs are very similar; with which we see one of the main factors in the decision to bring software production to the Asian nation to the detriment of many European and American countries.
Beyond the successful arc of countries that the 3i model configures (India, Israel, Ireland), these data speak for themselves: India is the new computing tiger. For example, the number of systems engineers received annually is another sample that explains their competitive strength in the software industry, as I have described in "The Software Industry in India: A Casual Success?"
These and other parameters, measures or indicators can be grouped, classified and related in a Balanced Scorecard that allows the State to structure an authentic national performance control system in the field of software. Just as we can build a dashboard for private for-profit companies, we can also apply it conscientiously to the public sector and, in particular, to the strategic decision spheres related to our industry. Thus, the methodology of Robert Kaplan and David Norton can be extremely useful to us to identify new initiatives as a State or as a company.
Conclusions
Software is, undeniably, a global industry. We must be extremely attentive to the evolution of the different parameters that influence the allocation and distribution of resources to carry out their development.
We all acknowledge the fervent momentum of India in recent years. This should not be a surprise, since as we have analyzed, their low wages and very good productivity and quality denoted by the low defect rate are putting other countries at competitive risk.
It is important to permanently monitor these and many other key indicators, and understand how, through cause-effect relationships, as proposed by Kaplan and Norton, we can generate a balanced scorecard that helps the State to implement strategic policies.
References
- KAPLAN Robert and NORTON David, “Balanced Scorecard” RUBIN Howard, “Global Software Economics” RUBIN Howard, “Worldwide Benchmark Project” RUFFINATTI Adrián F., “The Indian Software Industry: A Casual Success?”, Www.winred.com RUFFINATTI Adrián F., www.ruffinatti.blogspot.com
