International sourcing and asymmetry: how Western software entrepreneurs tap and decant Ukrainian engineering skills

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Work Organisation, Labour and Globalisation

Volume 6, Issue 2

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International sourcing and asymmetry: how Western software entrepreneurs tap and decant Ukrainian engineering skills

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Author(s): Graham Hollinshead , Jane Hardy

Publication date (Print): Autumn 2012

Journal: Work Organisation, Labour and Globalisation

Publisher: Pluto Journals

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Abstract

The international IT industry has been hailed as the epitome of the new global economy, appearing footloose in its productive and marketing activities across national borders, and drawing on the talents of an apparently homogenous and internationally dispersed cadre of knowledge workers. In this paper we refer to recent international re-engineering of the software development process to suggest that it encompasses a division of labour amenable to spatial separation. By contextualising the delivery of architectural and creative functions in the Western part of Europe, and more routine activities in the post-socialist territory of Ukraine, we are able explore the embedded nature of dispersed inputs into product and service manufacturing in the sector, and the complex managerial issues associated with co-ordinating sourcing over highly diverse and asymmetrical institutional and cultural zones. We identifycontrasting strategies employed by IT companies to mitigate the risks associated with operating over distance and to capitalise on the reserves of engineering knowledge and skills possessed by ‘nearshore’ service providers.

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Author and article information

Journal

Journal ID (doi): 10.13169

Journal ID (publisher-id): workorgalaboglob

Title: Work Organisation, Labour and Globalisation

Publisher: Pluto Journals

ISSN (Print): 1745641X

ISSN (Electronic): 17456428

Publication date (Print): Autumn 2012

Volume: 6

Issue: 2

Pages: 58-76

Article

Publisher ID: workorgalaboglob.6.2.0058

DOI: 10.13169/workorgalaboglob.6.2.0058

SO-VID: 6ec1893d-9743-4cca-9efa-0119548d3e3b

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All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

History

ScienceOpen disciplines: Sociology,Labor law,Political science,Labor & Demographic economics,Political economics

References

American Chamber of Commerce in Ukraine (2002) ‘White Paper on Offshore Software Development in Ukraine’ June.
Aspray, W, F, Moyadas & M. Y. Vardi, (2006) ‘Globalization and Offshoring of Software A Report of the ACM Migration Taskforce’, New York: Association for Computing Machinery.
Barrett, R. (2004) ‘Working at Webboyz: An Analysis of Control Over the Software Development Labour Process’, Sociology , 38 (4):777–794.
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Bunyaratavej, K, E. D. Hahn & J. P. Doh (2007) ‘International offshoring of services: a parity study’, Journal of International Management , 13:7–21.
Burawoy, M, P. Krotov, & T. Lykina (2000) ‘Involution and destitution in capitalist Russia’. Ethnography , 1(1):43–65.
Carmel, E. & S. Sawyer (1998)‘Packaged Software Development Teams: What Makes Them Different?’, Information Technology and People , 11:7–19.
Carmel, E. & P. Tjia (2005) Offshoring Information Technology: Sourcing and Outsourcing to a Global Workforce , Cambridge: Cambridge University Press.
Collin, M. (2001) This is Serbia Calling; Rock'N'Roll Radio and Belgrade's Underground Resistance , London: Serpent's Tail.
Cramton, C. D. (2001) ‘The mutual knowledge problem and its consequences for dispersed collaboration’, Organisation Science ,12:346–371.
Doh, J. P. (2005) ‘Offshore outsourcing: implications for international business and strategic management theory and practice’, Journal of Management Studies , 42: 695–704.
Friedman, T. L. (2006) The World Is Flat; The Globalized World in the Twenty – First Century , London: Penguin.
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Ghemawat, P. (2001) ‘Distance still matters: the hard reality of global expansion’ Harvard Business Review , 79 (8):137–147.
Hakken, D. (2000) ‘Resocialising Work? The Future of the Labour Process’, Anthropology of Work Review , 21(1):8–10.
Hall, P. A. & D. Soskice (eds) (2001) Varieties of Capitalism: The Institutional Foundations of Comparative Advantage , Oxford: Oxford University Press.
Hardy, J. & G. Hollinshead (2011) ‘The Embeddedness of Software Development in Ukraine: An Offshoring Country Perspective’, European Planning Studies 19 (9):1633–1650.
Hughes, J. A, M. Rouncefield & P. Tolmie (2003) ‘The Day-to-Day Work of Standardization: A Sceptical Note on the Reliance on IT in a Retail Bank’, in Woolgar, S. (ed) Virtual Society, Technology, Cyberbole, Reality , Oxford: Oxford University Press.
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Johanson, J. & J. E. Vahlne (1977) ‘The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments’, Journal of International Business Studies , 8:23–32.
Kankanhalli, A, B. C. Y. Tan & K. K. Wei (2006–2007) ‘Conflict and performance in 'global virtual teams’, Journal of Management Information Systems , 23(3):237–274.
Kaplinsky, R. (2000) Spreading the Gains from Globalisation: What Can Be Learned from Value Chain Analysis? Institute for Development Studies, Brighton: Sussex University.
Kenney, M, S. Massini & T. P. Murtha (2009) ‘Offshoring and administrative and technical work: New fields for understanding the global enterprise’, Journal of International Business Studies , 40:887–900.
Lane, D. (2000) ‘What kind of capitalism for Russia? A comparative analysis’, Communist and Post-communist Studies , 33(4):485–504.
Levy, D. L. (2005) ‘Offshoring in the New Global Political Economy’, Journal of Management Studies 42 (3): 685–693
Lewin, A. Y. & V Couto (2007), Next Generation Offshoring: The Globalization of Innovation , Durham, Duke University: CIBER/ Booz Allen Hamilton Report.
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Mayer-Ahuja, M. K. & J. E. Galvin (2003) ‘Socialization in virtual groups’, Journal of Management , 29:161–185.
Marshall Park, K. & G. Hollinshead (2011) ‘Logics and Limits of Ethical Offshoring in the Global Financial Services Industry’, Competition and Change , 15 (3):177–195.
Mariani, M. (2001) ‘Next to Production or to Technological Clusters? The Economics and Management of R&D location’, Journal of Management and Governance , 6 (2):151–152.
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Ørberg Jensen, P. D. & T. Pedersen (2011) ‘The Economic Geography of Offshoring: The Fit Between Activities and Local Context’, Journal of Management Studies , 48 (2):1467–6486.
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Rodgers, P., C. C. Williams & J. Round (2008) ‘Workplace crime and the informal economy in Ukraine, employee and employer perspectives’, International Journal of Social Economics , 35(6):666–678.
Rugman, A. M. & A. Verbeke, (2004) ‘A perspective on regional and global strategies of multinational enterprises’, Journal of International Business Studies , 35:3–18.
Sako, M. (2005) Outsourcing and Offshoring: Key trends and issues , Oxford: Said Business School Working Papers.
Scarbrough, H. (1999) ‘Knowledge as Work: Conflicts in the Management of Knowledge Workers’, Technology Analysis and Strategic Management , 11:5–16.
Standing, G. (2006) ‘Global Feminisation through Flexible labour: A Theme Revisited’, World Development , 3:583–602.
Sewell, G. & B. Wilkinson (1992) ‘“Someone to watch over me” Surveillance, Discipline and the Just-In-Time Labour Process’, Sociology , 26(2):271–89.
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Comments

Comment on this article

[1] American Chamber of Commerce in Ukraine (2002) ‘White Paper on Offshore Software Development in Ukraine’ June.

[2] Aspray, W, F, Moyadas & M. Y. Vardi, (2006) ‘Globalization and Offshoring of Software A Report of the ACM Migration Taskforce’, New York: Association for Computing Machinery.

[3] Barrett, R. (2004) ‘Working at Webboyz: An Analysis of Control Over the Software Development Labour Process’, Sociology , 38 (4):777–794.

[4] Blinder, A. S. (2009) ‘Offshoring: Big deal or business as usual?’ in J. N. Bhagwati, A. S. Blinder & B. M. Friedman (eds.) Offshoring of American Jobs: What Response from U. S. Economic Policy? , Cambridge, MA: MIT Press:20–59.

[5] Bunyaratavej, K, E. D. Hahn & J. P. Doh (2007) ‘International offshoring of services: a parity study’, Journal of International Management , 13:7–21.

[6] Burawoy, M, P. Krotov, & T. Lykina (2000) ‘Involution and destitution in capitalist Russia’. Ethnography , 1(1):43–65.

[7] Carmel, E. & S. Sawyer (1998)‘Packaged Software Development Teams: What Makes Them Different?’, Information Technology and People , 11:7–19.

[8] Carmel, E. & P. Tjia (2005) Offshoring Information Technology: Sourcing and Outsourcing to a Global Workforce , Cambridge: Cambridge University Press.

[9] Collin, M. (2001) This is Serbia Calling; Rock'N'Roll Radio and Belgrade's Underground Resistance , London: Serpent's Tail.

[10] Cramton, C. D. (2001) ‘The mutual knowledge problem and its consequences for dispersed collaboration’, Organisation Science ,12:346–371.

[11] Doh, J. P. (2005) ‘Offshore outsourcing: implications for international business and strategic management theory and practice’, Journal of Management Studies , 42: 695–704.

[12] Friedman, T. L. (2006) The World Is Flat; The Globalized World in the Twenty – First Century , London: Penguin.

[13] Fuxman, L. (2004) ‘Emerging Trends in Ukrainian Management Styles and the Challenge of Management Talent Shortage’, International Journal of Commerce and Management , 14 (1): 28–43.

[14] Gaddy, C. & B. Ickes (1998) ‘Russia's virtual economy’, Foreign Affairs , 77(5):53–67.

[15] Ghemawat, P. (2001) ‘Distance still matters: the hard reality of global expansion’ Harvard Business Review , 79 (8):137–147.

[16] Hakken, D. (2000) ‘Resocialising Work? The Future of the Labour Process’, Anthropology of Work Review , 21(1):8–10.

[17] Hall, P. A. & D. Soskice (eds) (2001) Varieties of Capitalism: The Institutional Foundations of Comparative Advantage , Oxford: Oxford University Press.

[18] Hardy, J. & G. Hollinshead (2011) ‘The Embeddedness of Software Development in Ukraine: An Offshoring Country Perspective’, European Planning Studies 19 (9):1633–1650.

[19] Hughes, J. A, M. Rouncefield & P. Tolmie (2003) ‘The Day-to-Day Work of Standardization: A Sceptical Note on the Reliance on IT in a Retail Bank’, in Woolgar, S. (ed) Virtual Society, Technology, Cyberbole, Reality , Oxford: Oxford University Press.

[20] Humphrey, J. (2000) ‘Assembly-supplier relations in the auto industry: globalisation and national development’, Competition and Change , 4:245–71.

[21] Johanson, J. & J. E. Vahlne (1977) ‘The internationalization process of the firm: a model of knowledge development and increasing foreign market commitments’, Journal of International Business Studies , 8:23–32.

[22] Kankanhalli, A, B. C. Y. Tan & K. K. Wei (2006–2007) ‘Conflict and performance in 'global virtual teams’, Journal of Management Information Systems , 23(3):237–274.

[23] Kaplinsky, R. (2000) Spreading the Gains from Globalisation: What Can Be Learned from Value Chain Analysis? Institute for Development Studies, Brighton: Sussex University.

[24] Kenney, M, S. Massini & T. P. Murtha (2009) ‘Offshoring and administrative and technical work: New fields for understanding the global enterprise’, Journal of International Business Studies , 40:887–900.

[25] Lane, D. (2000) ‘What kind of capitalism for Russia? A comparative analysis’, Communist and Post-communist Studies , 33(4):485–504.

[26] Levy, D. L. (2005) ‘Offshoring in the New Global Political Economy’, Journal of Management Studies 42 (3): 685–693

[27] Lewin, A. Y. & V Couto (2007), Next Generation Offshoring: The Globalization of Innovation , Durham, Duke University: CIBER/ Booz Allen Hamilton Report.

[28] MacKenzie, D. & J. Wajcman (1985) ‘Introductory essay’, in MacKenzie, D. & J. Wajcman (eds) The Social Shaping of Technology’ , Milton Keynes: Open University Press.

[29] Makogon, Y, T. Orekhova, I Khadzhynov & V. Koshelenko (2009) ‘Globalization and Socialization of Economic Development: Experience for Ukraine’, Economics and Management/ Ekonomika Ir Vadyba , 14:307–314.

[30] Manning, S., M. Roja, A. Y. Lewin & H. W. Volberda (2009) Why Distance Matters: The Dynamics of Offshore Location Choices , Durham, Duke University: CIBER working paper.

[31] Mannix, E. A., T. L. Griffith & M. A. Neale (2002) ‘The phenomenology of conflict in virtual work teams’, in Hinds, P. J. & S. Kiesler (eds) Distributed work , Cambridge MA: MIT Press:213–232.

[32] Marshall Park, K. & G. Hollinshead (2011) ‘Logics and Limits in Ethical Outsourcing and Offshoring in the Global Financial Services Industry’, Competition and Change , vol 15 (3):177–95.

[33] Mayer-Ahuja, M. K. & J. E. Galvin (2003) ‘Socialization in virtual groups’, Journal of Management , 29:161–185.

[34] Marshall Park, K. & G. Hollinshead (2011) ‘Logics and Limits of Ethical Offshoring in the Global Financial Services Industry’, Competition and Change , 15 (3):177–195.

[35] Mariani, M. (2001) ‘Next to Production or to Technological Clusters? The Economics and Management of R&D location’, Journal of Management and Governance , 6 (2):151–152.

[36] Metters, R & R. Verma (2008) ‘History of offshoring knowledge services’, Journal of Operations Management , 26:141–7.

[37] Morgan, K. & A. Sayer (1988) Microcircuits of Capital: ‘Sunrise’ Industry and Uneven Development , Cambridge: Polity Press.

[38] Munk, Andersen & Fielberg (2008) ‘Software Development in Ukraine’. Retrieved on July 1^st, 2012 from http://www.mafcon.com.

[39] Northampton Business School (2002) The Potential of Ukraine in Global IT Offshore Outsourcing Market , Northampton: Northampton Business School.

[40] O'Leary, M. B. & N. J. Cummings (2007) ‘The spatial, temporal, and configurational characteristics of geographic dispersion in teams’, MIS Quarterly , 31:433–52.

[41] Ørberg Jensen, P. D. & T. Pedersen (2011) ‘The Economic Geography of Offshoring: The Fit Between Activities and Local Context’, Journal of Management Studies , 48 (2):1467–6486.

[42] Pistor, K. (2005) ‘Supply and demand for law in Russia’, East European Constitutional Review , 8(4):105–108.

[43] Reich, R. (1991) The Work of Nations, Preparing Ourselves for 21^st Century Capitalism . New York: Alfred A. Knopf.

[44] Rodgers, P., C. C. Williams & J. Round (2008) ‘Workplace crime and the informal economy in Ukraine, employee and employer perspectives’, International Journal of Social Economics , 35(6):666–678.

[45] Rugman, A. M. & A. Verbeke, (2004) ‘A perspective on regional and global strategies of multinational enterprises’, Journal of International Business Studies , 35:3–18.

[46] Sako, M. (2005) Outsourcing and Offshoring: Key trends and issues , Oxford: Said Business School Working Papers.

[47] Scarbrough, H. (1999) ‘Knowledge as Work: Conflicts in the Management of Knowledge Workers’, Technology Analysis and Strategic Management , 11:5–16.

[48] Standing, G. (2006) ‘Global Feminisation through Flexible labour: A Theme Revisited’, World Development , 3:583–602.

[49] Sewell, G. & B. Wilkinson (1992) ‘“Someone to watch over me” Surveillance, Discipline and the Just-In-Time Labour Process’, Sociology , 26(2):271–89.

[50] Upadhya, C. (2009) ‘Controlling offshore knowledge workers: Power and agency in India's software outsourcing industry’, New Technology, Work and Employment , 24 (1): 2–18.

[51] Verbeke, A. (2009) International Business Strategy , Cambridge: Cambridge University Press.

[52] Ward, K. B. & J. L. Pyle (2000) ‘Gender, Industrialization, Transnational Corporations and Development: An Overview of Trends and Patterns (1995), in J. Timmons Roberts & A. Hite (eds) From Modernization to Globalization: Perspectives on Development and Social Change , Oxford: Blackwell:306–327.

[53] Williams, C. C. & J. Round (2009) ‘Out Of The Margins: Re-Theorizing The Role Of The Informal Economy In Ukraine’, International Journal of Economic Perspectives , 3(1):45–58.

[54] Williams, C. C. (2007) ‘Tackling Undeclared Work in Europe: Lessons from a Study of Ukraine’, European Journal of Industrial Relations , 13 (2):219–236.

[55] Woolgar, S. (2002) ‘The Five Rules of Virtuality’, S. Woolgar, S. (ed), Virtual Society, Technology, Cyberbole, Reality , Oxford: Oxford University Press:1–22.