A Systematic Snapshot of Software Outsourcing Challenges

Abstract

Outsourcing software development projects can be challenging, and there are several common challenges that organizations face. A study was conducted with a sample of 46 papers on outsourcing challenges, and the results show that there are several common challenges faced by organizations when outsourcing software development projects. Poor outsourcing relationship was identified as the most significant challenge, with 35% of the papers referencing it. Lack of quality was the second most significant challenge, with 33% of the papers referencing it. Language and cultural differences were the third most significant challenge, with 24% of the papers referencing it. Non-competitive price was another challenge faced by organizations, with 21% of the papers referencing it. Poor coordination and communication were also identified as a challenge, with 21% of the papers referencing it. Opportunistic behaviour, lack of contract negotiation, inadequate user involvement, and constraints due to time zone were also challenges faced by organizations. Other challenges faced by organizations included poor project management, lack of technical capabilities, vendor employee high turnover, poor requirement specification, IPR issues, poor management of budget, schedule, and delay, geopolitical and country instability, the difference in development methodologies, failure to manage end-user expectations, and poor monitoring and control. In conclusion, outsourcing software development projects can be challenging, but organizations can mitigate these challenges by selecting the right outsourcing partner, having a well-defined contract and clear communication, having a clear understanding of the requirements, and implementing effective project management practices.

Keywords

• Software outsourcing
• Vendor
• Outsourcing challenges
• Quality model
• Continent
• Country
• Global outsourcing
• IT Workforce Outsourcing.

References

1. Alagah, A. (2021). Strategic human resource outsourcing, enterprise resource planning, and performance: a systematic review. World Bulletin of Management and Law 5, 15-22.
2. Ali, S., et al. (2020). A framework for modelling structural association amongst barriers to software outsourcing partnership formation: An interpretive structural modelling approach. Journal of Software: Evolution and Process 32(6): e2243.
3. Androsova, I. & Simonenko, E. (2021). Strategic possibilities of IT-outsourcing in the organizations activities in the context of globalization. SHS Web of Conferences, EDP Sciences.
4. Balcet, G. & Ietto-Gillies, G. (2020). Internationalisation, outsourcing and labour fragmentation: the case of FIAT. Cambridge Journal of Economics, 44(1), 105-128.
5. Cheng, X., et al. (2021). Determinants of trust in computer-mediated offshore software-outsourcing collaboration. International Journal of Information Management, 57, 102301.
6. DA, O., et al. (2021). The six CSF of information technology outsourcing in municipal government agencies. Revista Alcance, 28(1), 97-117.
7. Deng, C.-P., et al. (2021). Organizational agility through outsourcing: Roles of IT alignment, cloud computing and knowledge transfer. International Journal of Information Management, 60, 102385.
8. Drzewiecki, J. (2021). Empirical verification of relationship between organizational boundaries, business model change and outsourcing scope and maturity. European Research Studies Journal Volume XXIV, Special Issue 1, 1287-1311.

9. Elnakeep, E., et al. (2022). Models and frameworks for is outsourcing structure and dimensions: A Holistic Study. Proceedings of International Conference on Emerging Technologies and Intelligent Systems: ICETIS 2021, 1, Springer.
10. Hanafizadeh, P. & Zareravasan, A. (2020). A systematic literature review on IT outsourcing decision and future research directions. Journal of Global Information Management (JGIM), 28(2), 160-201.
11. Hussein, M. A. & S. Zein (2021). Quadruple factors interference and its effects on quality of outsourcing testing: A case study. International Journal, 10(1).228-236.
12. Jain, V. (2021). Information technology outsourcing chain: Literature review and implications for development of distributed coordination. ACADEMICIA: An International Multidisciplinary Research Journal, 11(11), 1067-1072.
13. Jebali, A., et al. (2021). Secure data outsourcing in presence of the inference problem: issues and directions. Journal of Information and Telecommunication, 5(1): 16-34.
14. Juvekar, A. (2021). A comparative study of vendor selection process in global outsourcing industry with an elucidated scientific Approach. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(10), 4136-4152.
15. Karimi-Alaghehband, F. & Rivard, S. (2019). Information technology outsourcing and architecture dynamic capabilities as enablers of organizational agility. Journal of Information Technology, 34(2), 129-159.