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Global software development has become an important issue for small and medium enterprises. However, the distinct requirements of SME are still not so well understood. In order to contribute to the discussion we present case studies in two small German software companies that engage in offshoring of software development to Eastern Europe. By applying Strauss' articulation work framework we show to what extent SME rely upon situated coordination practices in order to warrant their agility. These practices are applied during discussions in which the actors reflexively evolve problems and solutions from their distinct perspectives and work practices. Thereby they are closely related to formal and informal communication, which takes place both locally and between the different teams. Our findings further suggest that specialized tools for the support of situated coordination practices in terms of articulation work are …