R empirical evidence in global software engineering. Osdo faces a variety of challenges including temporal, geographical and intercultural differences. We undertake an investigation of eighteen high maturity software vendor companies based in india. In addition, it takes a vendor s perspective, rather than the client perspective that is mostly used. Our survey included success factors identified in the previous findings of our. Our survey included success factors identified in the previous. Offshore software development outsourcing is a contractual business of highquality software production at offshore destinations with significant costsaving. Solutions for critical challenges in offshore software outsourcing. Offshore software development outsourcing osdo is a global software engineering paradigm for developing high quality software at low cost in lowwage countries. Factors influencing clients in the selection of offshore. It was discovered that the five factors collectively contribute to software development outsourcing and. Pdf critical success factors for offshore software. Outsourcing means using factors which are external to an organization to perform its functions whereas offshore outsourcing relies on using foreign resources to perform those functions. We have conducted an exploratory case study of outsourcing is support services.
The main offshore software outsourcing difficulties uncovered by this investigation include cultural differences, expectation mismatch, language differences, loss of contr. Paper presented at the technology management for global economic growth picmet, 2010 proceedings of picmet 10. By definition, offshore outsourcing or offshoring refers to outsourcing outside the boundaries of ones country king, 2007. The author develops a model that comprises 29 critical success factors which are classified into four distinct groups.
Critical success factors of offshore software develpment. Offshore software development osd is a leading business sector in the global it marketplace, and vendors in different countries are opening software development centres to take advantage of new business opportunities. These two nations are among the most popular destinations for is outsourcing. Critical barriers for offshore software development outsourcing vendors. The structural equation method was used to obtain the best fit model. Five critical factors to consider before outsourcing customer. This study has identified the success factors which can influence clients in the selection of offshore software outsourcing vendors. Study found that critical success factor for outsourcing should focus on the following.
It allows organizations to focus on its core competencies while leveraging the strengths of others, and there are compelling stories about its success. Software outsourcing partnership sop is mutually trusted interorganisational software development relationship between client and vendor organisations based on shared risks and benefits. Critical success factors for offshore software development. Paper presented at the proceedings of the 2010 annual research conference of the south african institute of computer scientists and information technologists, bela bela, south africa. There are advantages for contractors seeking to reduce their cost of it infrastructure through delegation of it resources to third parties. Oza and palvia 2007 identified critical success factors for effectively managing offshore software outsourcing relationships. A design of an empirical study of the applicability of the technology acceptance model to outsourcing decisions. What are the solutionspractices, as identified in the real practice, for proper implementation of the critical success factors in software outsourcing partnership from vendors perspective. A good understanding of the influential factors to software development effort and further precise effort estimate are undoubtedly crucial to any costeffective and controllable software development projects. Critical success factors for offshore software development outsourcing vendors. Critical success factors of offshore software development projects 1 chapter 5 identification of critical success factors 115 chapter 6 analysis of critical success factors.
Pdf critical success factors for offshore software development. Critical success factors in relationship management for. The scope of this article is is offshore outsourcing to vendors in india and china. Objective the objective of this research paper is to analyse the factors that influence software outsourcing clients in the selection of offshore software outsourcing vendors. Critical success factors for information systems outsourcing management. Identification of multicriteria for supplier selection in.
Offshore software development outsourcing is a recent and widely used business strategy for the development of high quality products at low cost. This research study set out to use survey data to explore the critical success factors of agile software development projects using quantitative methods. Intercultural challenges in offshore software development. How do critical success factors contribute to a successful it outsourcing. A common understanding of the typical offshore outsourcing implies a. Knowledge management initiatives in offshore software. With regard to the developed model, both the implementation of an online survey and the conduction of two indepth case studies show that the external management factors are particularly relevant for the successful implementation of an offshore software development project and that the perception of the individual critical success factors. Bush, amrit tiwana, hiroshi tsuji, an empirical investigation of the drivers of software outsourcing decisions in japanese organizations, information and software technology 50 2008 499510, elsevier, science direct sachdev, vishal, iyengar, kishen, will agile methodologies work in offshore outsourcing. A survey study of critical success factors in agile. Sop is different to conventional software development. A study of large multinational companies the increasing competition on the market means that multinational companies mncs as well as many other organizations must take advantage of business improvements. While there are multiple benchmarks that define the success of an outsourced initiative, positive return on investment roi is probably the most noticeable and measurable. We study the determinants of contract choice in offshore software development projects and examine how the choice of contract and other factors in the project affect project profits accruing to the. The objective of the research presented in this study is to find critical success factors csfs for contract management to assist vendor organisations for successful outcomes of the offshore software outsourcing contract.
Among all the benefits of osd, efficiency has been identified as a major motivation for offshore it outsourcing in the past 10 years lacity and willcocks, 1998, manning et al. The informationweek analytics 2010 business of outsourcing survey, which shows that 6 of 10 it shops outsource some critical function, also notes that almost 30% of those surveyed have fired an outsourcing partner in the last year. The aim was to evaluate the collective effect of these driving factors on the level of outsourcing by the various it firms in nigeria and the consequent growth of the sector in the country. The present paper proposes a set of key factors to achieve is outsourcing success and also. We focus in this paper on offshore outsourcing of information systems iss.
Offshore software development outsourcing is a contractual business of highquality software production at offshore destinations with signi. Information systems is outsourcing is a serious commitment a formal relationship underpinned by a contractual agreement, with longterm consequences among two or more organisations. Jan 01, 2016 this paper investigates the impact of software development outsourcing on the growth of the it sector in developing countries, especially nigeria. A case experience from finland, india, nepal and russia.
Critical success factors for offshoring of enterprise. Offshore software development outsourcing is a recent and widely used business strategy for the. However, some failures could be avoided with knowledge of common pitfalls and critical success factors of. Critical success factors for offshoring of enterprise resource planning erp implementations.
Apsec 09 proceedings of the 2009 16th asiapacific software engineering conference pages 7986 december 01. Ahmad, critical success factors for offshore software development outsourcing vendors. Overall, the research seeks to answer these questions. However, software development is both a technical and a social process in which various software modules are integrated, requiring ongoing interaction and synchronisation of. The continuing economic crisis has forced companies worldwide to revisit, with greater urgency, basic questions regarding which it functions must remain internal and which can be externalized to glean savings and efficiencies. Sep 17, 2002 case studies of a wide range of outsourcing relationship issues reveal several critical success factors for ensuring good decisions and enduring, mutually beneficial relationships. We see many offshore business models that fail because they rely way too much on the costsaving factor in their selection process of software development outsourcing vendors. The objective of this research paper is to identify and analyse factors that are important to be addressed by vendor organisations in order to be competitive in outsourcing business.
Abstractin this paper, we present an empirical investigation of difficulties in offshore software outsourcing relationships. This paper investigates the impact of software development outsourcing on the growth of the it sector in developing countries, especially nigeria. The objective of this research is to identify the intercultural challenges faced by vendors in osdo relationships. Our research goal is to provide software outsourcing practitioners with a body of knowledge that can help them to design and implement successful outsourcing initiatives. An analysis of the literature suggests that the difficulties in offshore outsourcing relationships have been relatively unexplored. Siffat ullah khan1, mahmood niazi1, and rashid ahmad. The impact of software development outsourcing on the. However, first experiences of these companies with offshore software development have not been consistently positive. Offshore software development outsourcing is a contractual business of. Empirical investigation of success factors for offshore software.
Culture as a critical success factor for project management journal of information technology management volume xix, number 3, 2008 28 sources a valuable means to reduce cost for it service vendors. Jun 17, 2017 this is a hugely complex area and one that i earned a reasonable living from for many years, initially focused on india and subsequently taking in a wide range of countries. We aim to investigate the critical factors to achieving trust in outsourcing relationships. Factors influencing clients in the selection of offshore software outsourcing vendors. Critical barriers for offshore software development. Capability, quality and performance of offshore is vendors. Is the sopm practically robust in terms of measuring organizations vendor capability for software development outsourcing partnership. This research addresses the critical success factors. In this paper, we analyse indian software outsourcing vendors views on the role of trust in software outsourcing relationships. However, the integration of global resources is a challenge for organizations pursuing successful project. East european countries, ireland, singapore, vietnam, s africa to name a. Difficulties in managing offshore software outsourcing. Offshore software development outsourcing contract from.
Critical success factors for software outsourcing partnership sop. How to find the right vendors for offshore it outsourcing. The it outsourcing proposal has been growing and becoming popular. A new process for success management bringing order to a. However, despite the increasing importance and need for empirically tested body of knowledge on different aspects of gsd, little empirical research has been carried out in order to determine which barriers have a significant influence on software outsourcing clients in the selection process of offshore software development outsourcing vendors. It plays a crucial role in enhancing marketing effectiveness, optimizing contact strategies, and improving customer experience. Citeseerx 1 critical success factors for information. Offshore software outsourcing contract, vendor, practicessolutions, empirical study, systematic. Results of this study indicate that outsourcing vendors are aware of potential difficulties that could be faced by both vendors and clients in offshore software outsourcing. This research provides a complete understanding of the critical success factors from the client, the vendor or both the client and the vendor perspective.
An empirical study conference paper june 2010 with 1,151 reads how we measure reads. Rq1 what are the critical success factors csfs for outsourced software development projects from a vendor. Critical success factors for outsourcing relationships. Six key success factors for outsourcing 2010 may turn out to be a pivotal year in the it outsourcing marketplace. Rashid, factors influencing clients in the selection of offshore software outsourcing vendors. Offshore software development outsourcing osdo is an important paradigm of global software engineering for the development of better. Key success factors for managing offshore outsourcing of software production using the ictsupported unified process model. Context offshore software development outsourcing is a contractual business of high quality software production with significant costsaving.
Proceedings of the 11th international conference on. Offshore software development outsourcing is a recent and widely used. An empirical study of offshore software development. The study became necessary owing to the obvious decline in it implementation in most developing countries despite. A preliminary study of offshore outsourcing from the manager. Software outsourcing partnership sop is a mutually trusted interorganisational software development relationship between client and vendor organisations to. How do critical success factors contribute to a successful it. Based on very less success rate of overall software projects globally, critical success factors csfs for offshore software projects is gaining much importance. Pdf critical issues of it outsourcing vendors in india. In this era of competition software companies tend to widespread their goodwill into global market by penetrating into different geographical markets and regions. Chapter 3 stateoftheart of it outsourcing 33 chapter 4 management of offshore software development projects 61 part b. The vendor organisation provides the agreed software development work in return for remuneration.
Pdf context offshore software development outsourcing is a modern business strategy for producing high quality software at low cost. The data collected from 109 agile projects from a diverse group of organizations of various sizes, industries, and geographic locations provided enough empirical information for statistical. Clearly the understanding of such issues is important to the vendors, but also to the clients in order to maintain an effective dyadic relationship. Context offshore software development outsourcing is a modern business strategy for producing high quality software at low cost. Dec 17, 2015 key success factors for offshore outsourcing. Martin wiener examines the critical success factors of such projects.
In this paper, our research methodology is composed of both empirical study in osdo industry. It identifies major software outsourcing drivers and studies the relationship between them and the growth of the it industry. Critical issues of it outsourcing vendors in india. Models referring to outsourcing theory sciencedirect. Pdf empirical investigation of success factors for offshore. Objective to identify various critical success factors csfs that have a positive impact on software outsourcing clients in the selection process of offshore software development outsourcing vendors. Empirical investigation of success factors for offshore software development outsourcing vendors article pdf available in iet software 61 february 2012 with 327 reads how we measure reads. Global software development has gained a drastic growth from the last two decades due to the revolution in information and communication technologies icts and the world has become a global village. Global outsourcing can provide a huge payback if done right. Critical success factors of offshore software development.
Results our study reveals both lack of technical capability and poor quality of service and systemprocess as the critical challenges in offshore software development outsourcing. Offshore software development outsourcing osdo is a modern business strategy for developing high quality software at lowwage countries at reduced cost. Barriers in the selection of offshore software development outsourcing vendors. Critical success factors for offshore software outsourcing contract. Five critical factors to consider before outsourcing customer analytics in todays competitive economic environment, customer analytics distinguishes leaders from the laggards. To 8 acknowledgments handle this threat, we plan to conduct empirical study in osdo industry to validate these. The impact of software development outsourcing on the growth. The critical success factors common to both clients and vendors are managing constant. The study is based on an empirical investigation of 18 high maturity software vendor companies based in india. Pdf critical challenges in offshore software development. A preliminary structure of software outsourcing vendors.
However, the success of any offshore project is equally important to both the outsourcer customer and the outsourcing partner vendor. There is a general lack of research that conducts a theorybased empirical examination of vendor performance, its antecedents, and any mediating variables. Empirical investigation of success factors for offshore. This study examines the relationship between outsourcing motives, suppliercustomer relationship and perceived customer value in noncore services outsourcing. The objective of the research presented in this study is to find critical success factors csfs for. Barriers in the selection of offshore software development. Intercultural challenges mitigation model for software. Offshore software development outsourcing osdo is an emerging business paradigm implemented by many software development organisations. Pdf critical success factors for software outsourcing. Many organisations end up frustrated as they learn that their attempts at is outsourcing have failed. It was discovered that the five factors collectively contribute to software development outsourcing and the growth of the it industry.