An exploratory study of communication and coordination challenges in offshore software development outsourcing: results of systematic literature review and empirical study

Abstract

Offshore Software Development Outsourcing(OSDO) is the rising business paradigm for Global Software Development. OSDO principals (clients) hire external offshore organizations (vendors) to develop components - of or complete software products based on an outsourcing contract. This paper reports communication and coordination challenges faced by OSDO vendors. A systematic literature review (SLR) identified 18 challenges cited in 101 relevant articles. In addition, forty - two experts from six continents responded to a questionnaire survey distributed to outsourcing industry companies (vendors) to validate SLR findings. The authors analyzed the cited challenges with respect to variables such as company size, continental location, study strategies, company type and levels of expert experience. We identified cultural differences, geographic dispersion, lack of face-to-face meetings, lack of ICT/technological cohesion and lack of credibility as significant challenges facing OSDO vendors. These challenges can negatively affect communication and coordination related processes in OSDO relationships. Their validated identification should prove useful to all vendors who seek remedy .