Fung Institute for Engineering Leadership | UC Berkeley
Master of Engineering Strategy Project Report
Strategy Report Title
Name
Name
..
Name
Advisors: Ikhlaq Sidhu,
others, UC Berkeley
Revised Sept 28, 2012
N
Abstract:
The practice of offshoring has become an integral part of how most
high-technology companies are operating today. The choice of
whether or not to engage in offshoring is an issue companies deal
with in various stages of their development. For some, to offshore is a
choice; for others, it is a practice essential to their success. How
companies approach expanding their existing model to incorporate
offshoring is unique to each. There are, however, common mistakes
that need not be repeated. This paper seeks to expand
understanding of effective offshoring practices by presenting
examples of the most common errors, a framework of effective
execution and two case studies.
Section I
Subsection: Complexity of project requirements
When deciding which projects to execute with an offshore team,
company leadership must consider of the size and complexity of the
product requirements. Projects involving numerous or complex
requirements tend to require a higher degree of interaction between
the product team and the customer/product management team.
To ensure that the offshore product team can maximize time spent in
development and design rather than waste time waiting on feedback
for a specific feature or customer-use case, the team must plan
functional requirements carefully. The greater the complexity of the
project, the more often the design team will have to validate project
assumptions or direction with a particular development feature or
item.
If the offshore team has simple and clear requirements for a product,
it can work far more efficiently without having to be in constant
communication with customers or product management.
1
| Title
Section II: Cases
Subsection:
Michael Dell founded Dell Computer in 1984 while he was attending the University of Texas at
Austin. Dell's initial success led to the company’s rapid growth in both domestic and international
markets. Since then, Dell has grown to become one of the largest Personal Computer manufacturers
in the world. However, during its development, Dell committed many of the common mistakes of
offshoring. In the 1990s, the leaders at Dell saw that credit card and airlines companies were
successful in reducing operating costs by opening customer support call centers in India. Lured by a
huge talent pool and potential savings, Dell opened its first customer call center in Bangalore, India
in 2001.
1
| Title
Bibliography and References


Carmel, Erran, and Paul Tjia. Offshoring Information Technology: Sourcing and
Outsourcing to a Global Workforce. Cambridge: Cambridge UP, 2005. Print
Offshore outsourcing: Trends, Pitfalls, And practices – Dr. Wendell Jones, 2003,
http://www.michigantechnologyleaders.com/pdfs/CutterOffshoreOutsourcingPartI.pdf

“Risks, Benefits, and Challenges in Global IT Outsourcing: Perspectives and Practices,
Dhar & Balakrishnan, 2006,
http://www.isqa.unomaha.edu/dkhazanchi/Teaching/ISQA45908596/Readings/Supplemental%20Readings/week%2012/RisksBenfits%20and%20Challenges%20in%20Global%20Outsourcing.pdf

“The Pitfalls of Outsourcing Programmers”, Michael Bean, sourced March 30, 2012,
http://forio.com/resources/article/the-pitfalls-of-outsourcing-programmers/
1
| Title
National rankings consistently place UC Berkeley’s undergraduate
and graduate programs among the world’s best. Berkeley is home to
top scholars in every discipline, accomplished writers and musicians,
star athletes, and stellar scientists—all drawn to this public
university by its rich opportunities for groundbreaking research,
innovative thinking and creativity, and service to society.
The Coleman Fung Institute for Engineering Leadership, launched in
January 2010, prepares engineers and scientists —from students to
seasoned professionals—with the multidisciplinary skills to lead
enterprises of all scales, in industry, government and the nonprofit
sector.
Headquartered in UC Berkeley’s College of Engineering and built on
the foundation laid by the College’s Center for Entrepreneurship &
Technology, the Fung Institute combines leadership coursework in
technology innovation and management with intensiv e study in an
area of industry specialization. This integrated knowledge cultivates
leaders who can make insightful decisions with the confidence that
comes
from
a
synthesized
understanding
of
technological,
marketplace and operational implications.
2
| Title