Difficulties in Managing Offshore Software Outsourcing Relationships: An Empirical Analysis of 18 High Maturity Indian Software Companies

Abstract

In this paper, we present an empirical investigation of difficulties in offshore software outsourcing relationships. We undertake an investigation of eighteen high maturity software vendor companies based in India. An analysis of the literature suggests that the difficulties in offshore outsourcing relationships have been relatively unexplored. Therefore a detailed investigation of the difficulties in commercial offshore software outsourcing relationships is presented. We use the multiple case study research methodology in this study. We collect qualitative data through the standardized open-ended interviews and analyze it through a grounded theory approach. 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. The main offshore software outsourcing difficulties uncovered by this investigation include cultural differences, expectation mismatch, language differences, loss of control, job loss and transition. We also propose provisional solutions to the emergent difficulties identified in this study.

Keywords:

• software outsourcing
• offshore outsourcing
• difficulties
• managing relationship
• qualitative research
• grounded theory

Additional information

Notes on contributors

Nilay V Oza

Nilay v. Oza is a final year doctoral student at the School of Computer Science, Systems and Software Research Group, University of Hertfordshire, U.K. Currently Nilay works at the Software Business Laboratory, Helsinki University of Technology, Finland as a senior researcher. During his doctoral study of nearly three years, he has undertaken a large scale empirical investigation in software outsourcing. His prime research interest is relationship management in offshore software outsourcing. Other areas of research interest include software process improvement, software contracting, management information systems and empirical research in software engineering. Earlier, Nilay undertook specialist masters degree in software engineering from the University of Hertfordshire.

Tracy Hall

Tracy Hall is currently a principal Lecturer at the School of Computer Science, University of Hertfordshire, U.K. She heads the Systems and Software Research Group at University of Hertfordshire. Tracy is an active researcher in the area of software measurement and software process improvement. She has many publications in this area. She holds a Ph.D. from the Centre for Software Reliability, City University, London