Cost Model for Global Software Development

Recent business trends have been characterized by global competition. Furthermore, the severe shortages and increasing costs of Information Technology professionals are forcing software development companies to explore global system development strategies. A conceptual framework representing factors affecting global software development decision and selection of development center locations is developed. Drawing from the literature in economics, global manufacturing and global R & D, this paper presents an economic cost model to support global software development decision and help select appropriate locations. The model considers economic, political, managerial, and technical environment in home and host country