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Firms seem to be subcontracting an ever expanding set of activities, ranging from product design to assembly, from research and development to marketing, distribution and after-sales service. Some firms have gone so far as to become "virtual" manufacturers, owning designs for many products but making almost nothing themselves.
It means finding a partner with which a firm can establish a bilateral relationship and having the partner undertake relationship-specific investments so that it becomes able to produce goods or services that fit the firm's particular needs.1
This is the question that Fextrax must ask before they decide on GDSD or outsourcing: "What is the impact of stakeholders' geographical distribution on global software development?"2
How do remote communication and knowledge management, cultural diversity and time differences negatively/positively impact on the software development process?
Globally Distributed Software Development:
GDSD is the creation of software by geographically distributed stakeholders in multiple locations...
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