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DALIAN SOFTWARE PARK. 2005. (Available atwww.dlsp.com.cn/english/Investment/inv_Soft.asp.)

This site provides information about Dalian Software Park. Dalian is the model city in China for the internationalization of the software industry. The site describes Chinese government support for the park, the software and business process outsourcing industries located there, higher education that is supporting the effort, and infrastructure and policies.

DALTON, D. AND SERAPIO, M. 1993, Foreign R&D Facilities in the United States. Research Technology Management. (Available atwww.technology.gov/Reports/report2.pdf).

From the report's executive summary. This report, an expanded and updated version of our earlier study, sheds important light on the magnitude, nature, and scope of this investment (see Dalton and Serapio 1995). It also explores the major factors influencing the location decisions of foreign R&D facilities in the United States. This information is important in increasing our understanding of the dynamics of R&D as well as the flow of high-value-added jobs.

DALTON, D. H., SERAPIO, M., AND YOSHIDA, P.G. 1999. Globalizing Industrial Research and Development. US Department of Commerce, Technology Administration, Office of Technology Policy, (Sept. 1999).

This is a follow-up to a study from the early 1990s on the growth of the global research and development enterprise. The report considers both foreign companies that operate R&D facilities in the United States and US companies that operate R&D facilities in other countries. It considers the magnitude, nature, and scope of these research investments, explains what they hope to gain from them, and analyzes why they choose particular geographic regions for their R&D facilities. Appendices provide lists of foreign-owned R&D facilities organized by country and by industry and US R&D facilities abroad organized by country and industry. This report sets the baseline for the changes that occur in the offshoring of IT research since 2000.

DAVIDOW, W. H. AND MALONE, M. 1992.The Virtual Corporation: Structuring and Revitalizing the Corporation for the 21st Century. Harper Business Pres,, New York, New York.

Description from Harper Business. A fascinating examination of the new strategies used by the most advanced corporations that are propelling the current industrial revolution.

DAVIS, G. B., GORGONE, J.T., COUGER, J.D., FEINSTEIN, D.L. AND LONGENECKER, H.E. 1997. IS '97: Model Curriculum and Guidelines for Undergraduate Degree Programs in Information Systems. In Guidelines For Undergraduate Degree Programs on Model Curriculum and Guidelines For Undergraduate Degree Programs in information Systems (IS '97).

This report is the first collaborative effort between ACM, AIS, and AITP and provides a model curriculum for undergraduate degree programs in information systems. The model curriculum provides guidelines, a set of courses, source materials, curriculum design objectives, and knowledge elements.

D'COSTA, A. P. 2004. Globalization, Development, and Mobility of Technical Talent: India and Japan in Comparative Perspective. United Nations University, World Institute for Development Economics Research. Research Paper No. 2004/62, (Oct.)

The paper is not directly about, but relevant to, offshoring. The main focus is on how mobility of technical talent changes the relationship between rich and poor countries. The paper considers the movement of highly skilled technical professionals across national borders as well as the role of skilled labor mobility in the process of innovation, and gives specific analysis in the cases of Japan, which has a deficit of skilled professionals, and India, which has a surplus. Particular attention is given to the concept of the "brain bank" by which countries such as India send high-skill workers to other economies that can benefit from its overseas workers.

DEDRICK, J., AND KRAEMER, K.L. 1998. Asia's Computer Challenge Threat or Opportunity for the United States and the World? Oxford University Press.

From Amazon.com. How did the computer industry evolve into its present global structure? Why have some Asian countries succeeded more than others? Jason Dedrick and Kenneth L. Kraemer delve into these questions and emerge with an explanation of the rapid rise of the computer industry in the Asia-Pacific region. Asia's Computer Challenge makes a systematic comparison of the historical development of the computer industries of Japan, Hong Kong, Korea, Singapore, and Taiwan and concludes that neither a plan versus market, nor a country versus company dichotomy fully explains the diversity found among these countries. The authors identify a new force, the emergence of a global production network. Reaching beyond specific companies and countries, this book explores the strategic implications for the Asian-Pacific countries and the United states. Now East Asia is faced with a challenge; they must make the move from low-margin hardware businesses to high-margin software and information businesses, while Americans must respond by maintaining leadership in standards, design, marketing, and business innovation.

DE FONTENAY, C. AND ERRAN, C. 2004. Israel's Silicon Wadi: The Forces Behind Cluster Formation. In T. Bresnahan and A. Gambardella (Eds.) Building High-Tech Clusters. Cambridge, 40-77.

From the paper's introduction. By the end of the 1990s, Israel was generally acknowledged to have developed a cluster of high-technology industries. For instance, Wired magazine (Hillner 2000), ranking locations by the strength of cluster effects, gave the Israeli high-tech cluster the same rank as Boston, Helsinki, London, and Kista in Sweden[, second only to Silicon Valley]. This report describes the reasons why these clusters emerged in Israel and the effect of these clusters on R&D production as well as future implications.

DELIO, M. 2005. Outsourcing Report Blames Schools. Wired News (March 24).

This article reports on a new study by the American Electronics Association. The study finds that access to cheap labor is not the primary reason for offshoring, but instead faults the American public education system for not giving strong math and science education to students. Lack of government funding for technology research and development, the high cost of providing health insurance to workers and other expenses for running a business in the United States, and an increasingly litigious industry were other factors. The study argued against protectionist measures and claimed that the effects of offshoring on technology workers has been exaggerated.

DELOITTE CONSULTING 2005. Calling a Change in the Outsourcing Market: The Realities for the World's Largest Organizations (April).

This report provides a more cautionary view of outsourcing than most current studies. It argues that outsourcing can introduce complexity, increase cost and friction, and increase the need for senior management attention; and that contracts with their outsourcing vendors cannot protect clients from customer damage and business loss from service disruption. Vendor structural advantages do not necessarily result in cheaper, better, or faster services and can often be duplicated in the client's firm. The authors recommend outsourcing only commodity functions, keeping outsourcing contracts short in duration to prevent vendor dependency, actively manage against service disruptions, and insist upon transparency to avoid hidden charges. Consolidation in the outsourcing industry is expected to limit a client's future bargaining power in contracting for outsourced services. (American Electronics Association Report, Losing the Competitive Advantage: The Challenge for Science and Technology in the United States. Feb. 2005.)

DELOITTE AND TOUCHE 2005. Calling a Change in the Outsourcing Market. Internal Report (April).

Description from Web site. While outsourcing has become a dominant trend in the marketplace, there are few in-depth studies available to help senior executives recognize its inherent complexities and common pitfalls. This study fills that gap.

Deloitte Consulting LLP is pleased to announce the release of a new study based on personal interviews with 25 of the largest organizations across eight industry sectors. This study uncovers what few studies report: outsourcing is not delivering its expected value to large organizations. The study reveals that seventy percent of participants have had significant negative experiences with outsourcing projects and are now exercising greater caution in approaching outsourcing; one in four participants have brought functions back in-house after realizing they could be addressed more successfully and/or at a lower cost internally; forty-four percent of participants did not see cost savings materialize as a result of outsourcing.

DENNING, P. and MCGETTRICK, A. 2005, Recentering Computer Science. Communications of the ACM, IT Profession Column (Nov.)

This article notes the mismatch between the rosy forecast for jobs in IT in the United States and the United Kingdom and the reduced number of Americans going into the profession. The article argues that computer science is not attractive because the existing curriculum emphasizes programming, analysis of algorithms, and complexity theory, which is not what users want to learn about. The authors propose a curriculum centered on innovation rather than programming. They draw lessons from the failure of the new math curriculum.

DICARLO, L. 2004. IT Employees Well-Paid, In Demand. Forbes.com, (June 8).

This brief article mainly reports on the findings of the Meta Group's annual IT staffing and compensation guide. Three surprises: fewer companies are using offshore labor than most people believe (only 19%), IT salaries have staying power, and demand is still very strong for certain IT skills. The article reports that IBM chief Sam Palmisano and Georgia Tech President Wayne Clough are forming a National Innovation Initiative to create a strategic US policy towards innovation as a way to ensure a US lead and protect jobs for Americans.

DIAMOND, J. 2005. Collapse, How Societies Choose To Fail Or Succeed. Viking Press, Penguin Group, New York, NY.

Description from Penguin Group. Diamond probes what caused some of the great civilizations of the past to collapse into ruin, and what can we learn from their fates? Diamond weaves an all-encompassing global thesis through a series of fascinating historical-cultural narratives. Moving from the Polynesian cultures on Easter Island to the flourishing American civilizations of the Anasazi and the Maya and finally, to the doomed Viking colony on Greenland, Diamond traces the fundamental pattern of catastrophe. Environmental damage, climate change, rapid population growth, and unwise political choices were all factors in the demise of these societies, but other societies found solutions and persisted. Similar problems face us today and have already brought disaster to Rwanda and Haiti even as China and Australia are trying to cope in innovative ways. Despite our own society's apparently inexhaustible wealth and unrivaled political power, ominous warning signs have begun to emerge even in ecologically robust areas like Montana.

DIROMUALDO, A., AND GURBAXANI, V. 1998. Strategic Intent for IT Outsourcing. Sloan Management Review, 67-80.

This paper gives a management analysis of the strategic reasons for IT outsourcing (not offshoring). It follows on Gurbaxani's 1996 paper in which he describes three objectives: improving IS (do IS better), business impact (use IT to achieve better business results), and commercial exploitation (exploit IT assets externally). For each of these objectives, the authors identify four sub-objectives. For example, IS improvement objectives include improving productivity of existing IT resources, upgrading existing IT resources, introducing new IT resources and skills, and transforming IT resources and skills. Examples are given of a number of actual companies.

DONG, Y. 2004. The Chinese Experience. In P. Drysdale (Ed.) The New Economy in East Asia and the Pacific. Routledge/Curzon Publishing, London. UK. 130-139. From Amazon.com. A look at the experience with the new economy in North America, considering technological change on economic process, the Internet, changing business organization, new regulatory issues and there are a series of industry case-studies. [This case study examines the Chinese experience.

DOSSANI, R. 2005. IT Services Offshoring to India: India's Position in the Supply Chain. ACM Job Migration Task Force Meeting (March 4) Palo Alto, CA.

This presentation discusses offshoring of software services, the stages of growth in offshoring, impact of offshoring on the US economy, India's human resource and other challenges, and the argument that India's IT industry could have developed earlier and been more significant.

DOSSANI, R. AND KENNEY, M. 2003. Lift and Shift: Moving the Back Office to India. Information Technology and International Development 1, 2, 21-37.

Abstract from the paper. The recent growth in offshoring business processes is driven by the need for cost savings, but, because of the potential for both the quantity and quality of work that may be done overseas, has larger implications for the service economy in developed countries. This paper uses India as a case study to examine the business, knowledge-related, and technological considerations that drive the globalization of business process fulfillment. It also examines the industrial structure that is emerging in India for the work and draws conclusions about its future and its implications for service workers in developed countries.

DOSSANI, R. AND KENNEY, M. 2003. Went for Cost, Stayed for Quality? Moving the Back Office to India. Unpublished Manuscript (Dec.)

This is one of the best general analysis of the offshoring of business processes. Much of the analysis is general, not specific to India. The paper includes analysis of business processes, their digitization, and their separation into components (each with a requisite skill set to perform the operation); a discussion of enabling technologies for offshoring, including digital technologies, increases in telecommunication bandwidth, scanning technologies, advanced telephone systems, and standardized software platforms; the evolution of the globalization of services, and the factors that a firm must consider in deciding whether to offshore an activity (knowledge component of the activity, interactive components of the process, level of separability of the process, savings from concentrating the activity in one location, reengineering as part of the transfer process, and the time sensitivity of the work). The portion of the paper specifically about India examines the country's advantages for offshoring in low labor costs, project management skills, and technological sophistication. A lengthy section analyzes the structure of the Indian business process industry based in part on whether the firms are Indian-owned and operated or multinational and whether they are captive or undertake outsourced work.

DOSSANI, R. AND KENNEY, M. 2003/2004. Moving Tata Consultancy Services into the Global Top 10. Journal of Strategic Management Education 1, 2, 383-402.

This is an excellent case study of management issues faced by TCS, the largest offshoring firm in India. The offshoring business is dynamic, with new kinds of businesses popping up as the major new opportunity emerges every several years. The article analyzes the management decisions TCS faced as the established offshore leader in software services on whether to enter the rapidly growing business process outsourcing segment of the market. Would they gain synergies between their software services and BPO businesses? Would entering the BPO market harm their plans for moving up the value chain to more profitable business? Should they enter the BPO business through acquisition or internal growth? These questions are carefully answered in this article. Accompanying the article are two notes. One is an 8-page Industrial Note that defines the software services business and examines its origins and development in India. The other is an 11-page Teaching Note that uses the software engineering waterfall model and some of Michael Porter's business concepts to better understand how TCS approached the issue of entering the BPO business.

DOSSANI, R. AND KENNEY, M. 2004. Offshoring: Determinants of the Location and Value of Services. Sloan Workshop Series in Industry Studies. (Aug.)

In this paper by two of the more thoughtful writers on offshoring, a number of issues related to the offshore relocation of work are raised. These include issues about the impact of labor pools and trade rules on offshoring; the use of offshoring to achieve economics of scale, scope, and specialization; secondary effects of offshoring such as innovation and risk-taking; and how various factors play out in the decision to do work in-house or outsource, and whether to outsource inshore or offshore. These issues are examined in three studies: a Silicon Valley start-up, Cradle Technologies, that offshores chip fabrication to Taiwan, does design work internally in India, and sells and markets in Japan through a Japanese firm; Agilent Technologies that does R&D, finance, and accounting for its worldwide operations in its own firm in India; and TCS, an Indian firm that conducts outsourcing work in the IT and software industries.

DOSSANI, R. AND KENNEY, M. 2004. The Next Wave of Globalization? Exploring the Relocation of Service Provision to India. Work in Progress (Sept.)

This is one of the best articles written about offshoring and India. The paper sets offshoring in a historical context, analyzes why offshoring is of value to a firm, characterizes the different kinds of firms that are providing offshoring services, describes the strategies and competitive advantages of each type, and speculates on the policy implication and initiatives that are likely to come from developed nations in response to offshoring. The focus is on India, but much of the analysis would apply to any nation providing IT and IT-enabled services (ITES). The paper is informed both by the authors' knowledge of the economic and organizational literatures, and by their first-hand contact with players in the Indian ITES industry.

DOSSANI, R. AND KENNEY, M. 2004. Thoughts for the ACM Working Group, ACM Job Migration Task Force Meeting. Chicago, IL (Oct.).

This presentation by Kenney at the initial meeting of the Job Migration Task Force discussed destinations for software work, business process outsourcing statistics, wage rates in India, technical enabling conditions and business drivers of offshoring, a case study of type of work sent off shore, analysis of job ads in India to determine types of jobs being filled, impact of offshoring on career ladders and wage depression, and educational issues.


DOSSANI, R. AND KENNEY, M. 2005. Moving Services Offshore: A Case Study of an U.S. High-Technology Firm. (Feb.).

Modified abstract. This report discusses the general reasons for relocating services to developing nations but focuses almost exclusively on India and, to a far lesser degree, on China. The report discusses the reasons for and the dimensions of service offshoring, summarizes the history of services offshoring to low-wage environments as well as the typology of the types of firms involved in offshoring. A case study of a San Francisco Bay Area-based high-technology instruments firm, Company X, is also presented. The paper concludes by summarizing the findings and speculates on the future trajectory of service offshoring.

DOSSANI, R. AND KENNEY, M. 2005. Pioneering the Globalization of Mental Labor. Work in Progress.

This paper traces the history of the rise of software services as an export industry for India and how it led India into the export of other services, which is one of the country's main connections with the global market. The paper includes a lot of useful information in tables, including:
" global software services spending by categories of work
" trajectory of technological development and the effect on jobs
" the supply chain for applications programs
" trends in software services outsourcing in the United States
" India's share in components of the software services industry
" Employment in the software industry in India and the United States
" India's national champions in IT
" growth of the Indian software industry over time
" Founders backgrounds of the leading Indian firms
" Indian companies that are leading software exporters
" Comparison of work done in US and India, organized chronologically
" Educational levels of software engineers in Indian software exporting firms

Some of the topics that are discussed in the paper include a history of the US software services industry, a parallel history of the Indian software services industry, a discussion of the technological innovations that have been drivers of the Indian software services industry, infrastructural weaknesses in India and how the country overcame them, how business risk has shaped the structure of the Indian software industry, the role of politics and policy in the shaping of the Indian software industry, new methods for controlling work process when vendor and client are at a distance, the impact of Y2K, the weaknesses in the Indian educational system, and the role of the Indian Diaspora.

DREZNER, D. W. 2004. The Outsourcing Bogeyman. Foreign Affairs 83, 3, (May/June) 22-34.

Drezner teaches political science at the University of Chicago. This article, which has been widely read and discussed, gives a very upbeat analysis for America of the outsourcing challenge. It does an excellent job of describing the economic factors at play in outsourcing. Topics include putting US job losses to offshoring in perspective, the relation between offshoring and job loss, political backlash to offshoring, the economic harm of protectionism, geographic proximity in jobs, problems with job loss projections, the role of technology in job loss, historical perspective on jobless recovery, the principle of comparative advantage, and non-economic benefits of offshoring. Drezner recommends that politicians try to do no harm and that they change rules under which displaced workers can receive federal assistance. He also suggests that industry consider outsourced job unemployment insurance. Since the perception of the problem is actually much higher than the actual risk, the cost of premiums on policies would be low for the psychological benefit to workers.

DRUCKER, P. F. 2005. Trading Places. The National Interest (March) (Available at www.nationalinterest.org).

This article is not about offshoring but provides relevant context for understanding it. The article examines four trends in the world economy. The world of information is changing how and what we buy and what consumers expect. The world of money is being changed as the US dollar is undermined by the US budget deficit, thus placing in peril the US role as the central bank for the world. The world is increasingly being run by multinationals who represent 80% of the world's industrial production. These companies are headquartered in many different countries, of varying size, and in many industries, increasingly through partners rather than subsidiaries. Finally, there is a new world of mercantilism, dominated not by nation-states but instead by trading blocs of several countries that have free trade within the bloc and protectionism outside the bloc. Increasingly the role of the United States is being challenged by this system. All of these changes are challenging the Bush approach to world affairs.