Abstract

This paper  describes  how IS offshoring  organisations are changing in response to increased

globalisation of the practice of software development.   It posits the emergence of  a new form of multinational enterprise (MNE), described in this paper as a ‘modern heterarchy’, from the construct of the

heterarchy  originally developed by Gunnar Hedlund in 1986.   The paper draws on theoretical

antecedents in the discipline of international business studies, and  is  supported by empirical data

gathered from two extended case studies of offshore IS projects.    The research uses grounded theory

techniques for the collection and analysis of data, and has particular value for IS practitioners in

offshore IS MNEs.

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