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More than a decade ago, organizations seeking lower costs and access to skilled resources began to experiment with remotely located software development facilities. This change is having a profound impact not only on marketing and distribution but also on the way products are conceived, designed, constructed, tested, and delivered to customers. The number of organizations distributing their software development processes worldwide keeps increasing. As a result, software development is becoming a multi‐site, multicultural and globally distributed undertaking. More recently, attention has turned toward trying to understand the factors that enable multinationals and virtual corporations to operate successfully across geographic and cultural boundaries. On the basis of these factors, we present the lessons learned from case studies in two software development units from multinational organizations located in …