GLOBALISATION
How do
ISVs respond?
Globalisation is affecting European ISVs more than any other
sharing with others, provide customer
sector of the ICT industry both from the ability to use low cost
access to view and correct data,
protect data from unauthorized access,
software development expertise in areas like India and the Far East
ensure data is only used for intended
and with the threat, via SaaS, of companies from anywhere across purpose and have clear complaint
the globe deploying low cost solutions to attack home markets.
settlement and resolution procedures.”
These challenges that David
points out have to be addressed to
D
avid Thomas, Executive “Though the majority of respondents be successful in a global marketplace
Director Software Division of were happy with their offshore however is the ISV out there on their
SIIA (Software and Information development they had all learnt from own trying to do this.
Industry Association), explains their experiences and developed Certainly the SIIA is there to provide
some of the advantages of offshore processes and procedures to ensure help and advice to its members who
development, “Over the last few integration into their own operations.” want to trade globally but what about
years multi-shore development in the Globalisation however is much partnerships to help the ISV go global.
software industry has become very more now than software development. Well the two big software providers
popular primarily because of cost The SaaS business model means IBM and Microsoft have whole teams
advantages and the ability to bring that we all are in a global software of people helping ISVs deliver their
products to market more rapidly.” applications world as David explains, solutions right across the world. They
“The uptake has accelerated “SaaS has been global from day one. have programs that help developers
rapidly over the last 3 years as There are no boundaries with the test their solutions in the SaaS
organisations started to build Internet and many software companies model and then partner with service
offshore development into the heart have exploited this to expand out providers who can provide hosting
of their strategy.” of their own home markets to make and billing solutions.
“Cost and speed to market are significant gains overseas.” But what of the other ISVs who are
still strong reasons behind the drive “The SaaS providers challenge not IBM and Microsoft partners. How
to offshoring as more and more ISVs however is providing localization, 24/7 do they go global? Kevin Aspindle,
use it to enable them to grow more customer support, finding supporting Director EMEA at Progress Software,
rapidly, compete more effectively channels in different countries, explains how they help their partners,
in what is becoming a tougher understanding local business “We advise partners to look at
marketplace, make themselves more practices and establishing multi-shore globalization in the same way they
efficient and allow them to focus on datacentres to host their applications.” would look at developing any other
product quality from a development “Also there are data privacy and part of their business. They need to
standards viewpoint.” security issues with SaaS providers rethink their business model thoroughly
“In a survey we conducted last year having to provide intra-country data and not just see a pot of gold at the end
the biggest surprises for us from the transfer protection whilst supporting of a globalization rainbow.”
feedback from ISVs using offshoring the individual’s right to access and “They need to define their
was the high quality of work they were change their data.” objectives, KPIs and budgets. Look
receiving and the speed and response “Any SaaS provider working at timescales honestly, appoint
from their subcontractors.” globally will have to adhere to some someone to own the expansion and
“The biggest disappointments ‘safe harbour principles’ such as, then take advice.”
reported were logistics and disclosing how they will use personal “When doing the marketing strategy
coordination and the turnover of staff data, provide opt-out of any data planning it is important to understand
working on their projects.” sharing, provide notice and choice for where the money is, particularly in
44 8020 EUROPA JUNE 2008
44, 45.indd 1 13/6/08 09:31:00
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