Success Factors for Offshore Information System Development

Abstract

This paper investigates key factors affecting the success of small to medium organizations providing offshore software development, usually to companies in the United States. Five success factor groups (people factors, technical infrastructure, client interface, business infrastructure, and regulatory interface) with a total of 31 critical success factors were identified through a literature review. The critical success factors were assessed for importance by surveying individuals in organizations that outsource system development or that provide system development services. The survey found that the critical success factors of workers’ skills, client knowledge, trust in the client-outsourcer relationship, telecommunications, and intellectual property protection are the most critical to the success of offshore software development outsourcers. Somewhat surprising was that cost was not the most critical success factor. The paper concludes with a discussion on the implications of these findings to outsourcers and outsourcing clients.

Keywords:

• Outsourcing
• Success Factors
• Information Systems Development
• Offshore
• Global

Additional information

Notes on contributors

Murray E. Jennex

Murray E. Jennex is an assistant professor at San Diego State University and president of the Foundation for Knowledge Management (LLC). Dr. Jennex specializes in knowledge management, system analysis and design, IS security, outsourcing, and organizational effectiveness. He has managed projects in applied engineering and business and information systems development and implementation. His industrial and consulting experience includes nuclear generation, electrical utilities, communications, health services, and governmental agencies. Dr. Jennex has published over thirty-five articles in conferences, books, and journals. He holds a B.A. in chemistry and physics from William Jewell College, an M.B.A. and an M.S. in Software Engineering from National University, and an M.S. in Telecommunications Management and Ph.D. in Information Systems from the Claremont Graduate University. Dr. Jennex is also a registered professional mechanical engineer in the state of California.

Olayele Adelakun

Olayele Adelakun is an Assistant professor of MIS at DePaul University Chicago, Illinois, School of Computer Science, Telecommunication and Information Systems. His research focuses on IT Outsourcing, ERP systems implementation, and Information systems quality and Evaluation. He has conducted case studies in both medium size companies and multinational companies in Finland and the United States. He was the chairman of the 2001 and 2002 IT outsourcing conference and the moderator of the 2003 offshore outsourcing panel discussion at DePaul University. He has also given several executives presentation. He has published over thirty articles in conferences, books and journals. He holds an M.S. in Information Processing Science from University of Oulu, Oulu, Finland and Ph.D. in Information Systems from the Turku School of Economics and Business Administration, Turku, Finland.