Executive Summary (This is a document excerpt)

Building offshore capability for the product design is a journey and not a quick fix. To develop a globally distributed R&D system, firms pass through four stages as they mature their program management processes, define what is core and non-core development, and build trust in their suppliers. Our research shows that the evolution parallels how clients' IT services relationships develop. Over this 36- to 60-month voyage, firms build internal support for sending more complex work to countries like India and steadily update their internal processes to suit distributed product design. They need to develop a culture and a set of metrics that encourage sending work offshore successfully. However, the pace of sending work offshore is a double-edged sword, and organizations should avoid the temptation to hasten this process by sending complex work before the required process and cultural maturity have developed. Vendors in this space can help their clients accelerate their migration by providing the cultural workshops as well as process consulting.

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