The limits of rationalization: Work practice, industry structure and spatial organization in the software industry

This dissertation examines the structure of software work and its relationship with the industry's spatial and organizational structure, adding to: (1) the theoretical and cross-disciplinary understanding of software practice, (2) detailed studies of work and organization in information industries, and (3) the analysis of emerging software locations like India.; Previous software analysis is limited by the weak integration of production, organization and location with wider industry evolutions. This is partially derived from implicit industrial or manufacturing assumptions embedded within theory and data. Correcting this requires establishing an analytical framework for software practice (the work of making software) through the integration of engineering and social science theories and methods.; Detailed analysis of software's technical and work practices indicate production is structured by a bounded rationalization. Traditional industrial methods have limited applicability because software practice embeds communication and information at the heart of production. Bounded rationalization frames all software practice around issues of access (to skilled-labor and domain-knowledge), agglomeration (within production and near markets) and application (in specific contexts and domains). These patterns frame the industry's structural and spatial organization, as firms respond to consistent and inter-connected labor, quality and productivity constraints.; The framework's robustness is evident in the US industry's evolution, beginning with the independent software industry's establishment in 1968. The industry's global expansion involved global labor-networks---not direct offshore investment---maintaining agglomerated US production. This global move was driven by access to labor and not its cost, and drew heavily upon Indian professionals.; These skilled-labor networks provided the entryway for Indian firms into the global industry. Mirroring the US experience, software's bounded rationalization creates tension between global expansion and domestic regional agglomeration. Domestic advantages are limited by the costs of distance, communication and quality between Indian firms and their key markets. Early evidence shows the leading Indian firms moving beyond India to establish production in key markets and minimize the offshore disadvantage.; Longer-term, the bounded rationalization framework suggests: (1) offshore software is not a substantial threat to the US, (2) domestic market weaknesses limit the Indian industry's geographic concentration and growth within India, (3) industries with rationalized production pattern---like IT-enabled services (call centers, business processes)---will move offshore resulting in dislocation in advanced markets.