Satellite phone development through an off-shore, outsourcing partnership: Client and vendor experiences.

Product development outsourcing and off-shoring, especially in a high-technology industry such as Satellite Communications, is done by carefully considering the choice of the partner and the operating business model. From the satellite communications company's (Client's) perspective, outsourcing and off-shoring work is a strategic decision that involves considering whether to have a captive off-shore center for resource augmentation or outsource to a third-party partner organization. Furthermore, there are decisions regarding choosing a suitable trustworthy partner organization, pricing models, and the viability of a long-term relationship that involves in-life product management and protection of Intellectual Property ownership. From the partner's (Vendor's) viewpoint, there are several strategic and tactical decisions involving technical solution and engineering development strategy, selecting a mutually acceptable pricing model, and analyzing the risks involved in developing the high-tech product away from customer location. This case analyzes the outsourcing and off-shoring engagement between a leading provider of satellite communications and a product engineering services company in India. This case brings out the strategic perspectives of the client–vendor engagement in building a satellite communications product. [ABSTRACT FROM AUTHOR]