Making the Sourcing Decision of Software Maintenance and Information Technology

Outsourcing has been getting a significant growth for the last few years. Organizations tend to outsource Information Technology (IT), primarily to take advantage of the availability of qualified, trained and skilled workforce in low cost countries across the globe. Outsourcing of IT and software maintenance seem very promising, but a number of factors, risks, and challenges associated with the outsourcing process that make the sourcing decision very complicated. The present study aimed at gaining in-depth understanding of the three aspects of outsourcing, namely; perceived benefits of IT outsourcing, influencing factors of IT outsourcing and software maintenance offshoring. The findings of the current study will lead us to develop a sourcing framework for outsourcing decision as well as a decision support system for software maintenance. A systematic literature review is performed that presents perceived benefits of IT outsourcing, the influencing factors of IT outsourcing and software maintenance. Furthermore, the identified factors are analyzed based on their occurrences in literature as well as chi square test is performed to derive the significant differences amongst the factors based on decades. Similarly, critical success factors are derived both for IT outsourcing and software maintenance offshoring. Our article shows that how the critical success factors impact the IT as well the software maintenance in global delivery perspective. The findings of the current study will help the IT experts and decision makers in making suitable sourcing decisions.

[1]  Khor Siak Wang,et al.  Conceptual framework for implementation of knowledge sharing in global software development organizations , 2017, 2017 IEEE Symposium on Computer Applications & Industrial Electronics (ISCAIE).

[2]  K Sankaran,et al.  Quality Determinants in Offshored IS Projects: A Comparison between Projects Completed Within-Budget and Over-Budget , 2011 .

[3]  A. Qusef,et al.  A Survey of IT Outsourcing in Jordanian Market , 2017, 2017 International Conference on New Trends in Computing Sciences (ICTCS).

[4]  Siffat Ullah Khan,et al.  Success Factors for Software Outsourcing Partnership Management: An Exploratory Study Using Systematic Literature Review , 2017, IEEE Access.

[5]  Sajjad Mahmood,et al.  Success factors influencing requirements change management process in global software development , 2019, J. Comput. Lang..

[6]  Mirko Vintar,et al.  EVALUATION OF IMPACT OF OUTSOURCING ON EFFICIENCY OF PUBLIC SECTOR ORGANISATIONS , 2011 .

[7]  A. Molla,et al.  Factors Influencing Knowledge Transfer in Onshore Information Systems Outsourcing in Ethiopia , 2019 .

[8]  Jens Dibbern,et al.  Learning Software Maintenance Tasks in Offshoring Projects: A Cognitive-Load Perspective , 2012, ICIS.

[9]  Heiko Gewald,et al.  The perceived benefits of business process outsourcing: An empirical study of the German banking industry , 2010 .

[10]  Harry M. Sneed Offering software maintenance as an offshore service , 2008, ICSM.

[11]  Henrik Munkebo Christiansen Meeting the Challenge of Communication in Offshore Software Development , 2007, SEAFOOD.

[12]  R. Sulaiman,et al.  A review on IT outsourcing approach and a proposed IT outsourcing model for Malaysian SMEs in e-Business adoption , 2013, 2013 International Conference on Research and Innovation in Information Systems (ICRIIS).

[13]  Sajjad Mahmood,et al.  Challenges of project management in global software development: A client-vendor analysis , 2016, Inf. Softw. Technol..

[14]  Arif Ali Khan,et al.  Taxonomical classification of barriers for scaling agile methods in global software development environment using fuzzy analytic hierarchy process , 2020, Appl. Soft Comput..

[15]  Rajiv Kishore,et al.  An investigation of factors that influence the duration of IT outsourcing relationships , 2007, Decis. Support Syst..

[16]  Jiwei Huang,et al.  A framework for modelling structural association amongst barriers to software outsourcing partnership formation: An interpretive structural modelling approach , 2020, J. Softw. Evol. Process..

[17]  Siffat Ullah Khan,et al.  Critical challenges in managing offshore software development outsourcing contract from vendors' perspectives , 2017, IET Softw..

[18]  William Aspray IT Offshoring and American Labor , 2010 .

[19]  Shah Nazir,et al.  A sourcing decision model for application maintenance services , 2017, 2017 3rd International Conference on Science in Information Technology (ICSITech).

[20]  Gautam Shroff,et al.  Influencing factors in outsourced software maintenance , 2006, SOEN.

[21]  Murray E. Jennex,et al.  Success Factors for Offshore Information System Development , 2003 .

[22]  Jae-Nam Lee,et al.  IT Outsourcing Strategies: Universalistic, Contingency, and Configurational Explanations of Success , 2004, Inf. Syst. Res..

[23]  Marianne Kinnula,et al.  Investigating the Differences between Success Factors of Conventional IS Outsourcing and Quasi-Outsourcing , 2011, 2011 44th Hawaii International Conference on System Sciences.

[24]  R. Jain,et al.  Factors influencing the outsourcing decisions: a study of the banking sector in India , 2011 .

[25]  Arif Ali Khan,et al.  Systematic review of success factors and barriers for software process improvement in global software development , 2016, IET Softw..

[26]  Zeng Zhen-xiang,et al.  Study on Critical Success Factors for IT Outsourcing Lifecycle , 2007, 2007 International Conference on Wireless Communications, Networking and Mobile Computing.

[27]  Habib Ullah Khan,et al.  Analyzing Factors That Influence Offshore Outsourcing Decision of Application Maintenance , 2020, IEEE Access.

[28]  Rajiv Kishore,et al.  A relationship perspective on IT outsourcing , 2003, CACM.

[29]  Viktoria Stray,et al.  Understanding coordination in global software engineering: A mixed-methods study on the use of meetings and Slack , 2020, J. Syst. Softw..

[30]  Rajiv Kishore,et al.  Offshore Outsourcing: Risks, Challenges, and Potential Solutions , 2009, Inf. Syst. Manag..

[31]  Joseph W. Rottman,et al.  Effects of offshore outsourcing of information technology work on client project management , 2009 .

[32]  Makoto Kojima,et al.  Making IT Offshoring Work for the Japanese Industries , 2007, SEAFOOD.

[33]  K. Johnston,et al.  Understanding the outsourcing decision in South Africa with regard to ICT , 2009 .

[34]  Lili Marziana Abdullah,et al.  Analysis and application of an outsourcing risk framework , 2012, J. Syst. Softw..

[35]  Khalid S. Soliman A framework for global IS outsourcing by application service providers , 2003, Bus. Process. Manag. J..

[36]  Shuib Basri,et al.  Occupational stress, knowledge sharing and GSD communication barriers as predictors of software engineer's creativity , 2011, 2011 IEEE International Conference on Industrial Engineering and Engineering Management.

[37]  Rajneesh Chauhan Offshoring ERP Implementations: Critical Success Factors in European Perspective , 2011 .

[38]  Dinesh Batra,et al.  Modified agile practices for outsourced software projects , 2009, CACM.

[39]  T. Iyamu,et al.  Offshore IT Outsourcing to South Africa - Analysis of Readiness and Attractiveness , 2013 .

[40]  Mario Piattini,et al.  Problems and Solutions in Distributed Software Development: A Systematic Review , 2008, SEAFOOD.

[41]  Ron Chi-Wai Kwok,et al.  IT outsourcing evolution---: past, present, and future , 2003, CACM.

[42]  Karl Kurbel,et al.  Globalization and offshoring of software , 2007, Wirtschaftsinf..

[43]  Niamat Ullah,et al.  Barriers to Software Outsourcing Partnership Formation: An Exploratory Analysis , 2019, IEEE Access.

[44]  Erran Carmel,et al.  Small Firms and Offshore Software Outsourcing: High Transaction Costs and Their Mitigation , 2005, J. Glob. Inf. Manag..

[45]  Muhammad Ilyas,et al.  Software integration in global software development: Challenges for GSD vendors , 2017, J. Softw. Evol. Process..

[46]  Mahmood Niazi,et al.  Empirical investigation of success factors for offshore software development outsourcing vendors , 2012, IET Softw..

[47]  Walter Rodriguez,et al.  Outsourcing Information and Computer Technology , 2014, 2014 Annual Global Online Conference on Information and Computer Technology.

[48]  Jos van Hillegersberg,et al.  Action readiness and mindset for IT offshoring , 2010, J. Enterp. Inf. Manag..

[49]  Sajjad Mahmood,et al.  Challenges of project management in Global Software Development: Initial results , 2013, 2013 Science and Information Conference.

[50]  Wendy L. Currie,et al.  From Application Outsourcing to Infrastructure Management:: Extending the Offshore Outsourcing Service Portfolio , 2005 .

[51]  Soni Agrawal,et al.  Factors Influencing Performance of ITES Firms in India , 2012, Inf. Resour. Manag. J..

[52]  Jens Dibbern,et al.  Offshoring of Application Services in the Banking Industry – A Transaction Cost Analysis , 2006 .

[53]  Sjaak Brinkkemper,et al.  Reasons for Success and Failure in Offshore Software Development Projects , 2008, ECIS.

[54]  Haidar M. Fraihat Theoretical and Pragmatic Framework For Outsourcing Of IT Services , 2006, Journal of International Technology and Information Management.

[55]  Madhuchhanda Das Aundhe,et al.  Risks in offshore IT outsourcing: A service provider perspective , 2009 .

[56]  Sherah Kurnia,et al.  Psychological Contract in IT Outsourcing: A Systematic Literature Review , 2018, HICSS.

[57]  Mahmood Niazi,et al.  Critical Success Factors for Offshore Software Development Outsourcing Vendors: An Empirical Study , 2010, PROFES.

[58]  Mahmood Niazi,et al.  Barriers in the selection of offshore software development outsourcing vendors: An exploratory study using a systematic literature review , 2011, Inf. Softw. Technol..

[59]  Thomas Tøth Trust in client-vendor relations: an empirical study of collaboration across national and organizational boundaries , 2014, CABS '14.

[60]  P. Hanafizadeh,et al.  A model for selecting IT outsourcing strategy: the case of e-banking channels , 2018 .

[61]  Shareeful Islam,et al.  Goal and Risk Factors in Offshore Outsourced Software Development from Vendor's Viewpoint , 2009, 2009 Fourth IEEE International Conference on Global Software Engineering.

[62]  Mahmood Niazi,et al.  Critical Success Factors for Offshore Software Development Outsourcing Vendors: A Systematic Literature Review , 2009, 2009 Fourth IEEE International Conference on Global Software Engineering.

[63]  Suzanne Rivard,et al.  Information Technology and Distance-Induced Effort to Manage Offshore Activities , 2011, IEEE Transactions on Engineering Management.

[64]  Geir Kjetil Hanssen,et al.  From offshore outsourcing to insourcing and partnerships: four failed outsourcing attempts , 2014, Empirical Software Engineering.

[65]  Keld Bødker,et al.  Knowledge transfer planning and execution in offshore outsourcing: An applied approach , 2015, Inf. Syst. Frontiers.

[66]  Leslie P. Willcocks,et al.  Outsourcing Global Services: Knowledge, Innovation and Social Capital , 2008 .

[67]  R. González,et al.  Information Systems Outsourcing Reasons and Risks: An Empirical Study , 2008 .

[68]  Tim Goles,et al.  Vendor capabilities and outsourcing success: A resource-based view , 2003, Wirtschaftsinf..

[69]  A. S. M. Sajeev,et al.  Offshore outsourcing: the risk of keeping mum , 2007, CACM.

[70]  Siffat Ullah Khan,et al.  An Evaluation Framework for Communication and Coordination Processes in Offshore Software Development Outsourcing Relationship: Using Fuzzy Methods , 2019, IEEE Access.

[71]  Naveed Ikram,et al.  Build Software or Buy: A Study on Developing Large Scale Software , 2017, IEEE Access.

[72]  Pearl Brereton,et al.  Performing systematic literature reviews in software engineering , 2006, ICSE.

[73]  Stefanie Betz,et al.  OUTSHORE Maturity Model: Assistance for Software Offshore Outsourcing Decisions , 2010, Collaborative Software Engineering.

[74]  Luiz Fernando Capretz,et al.  Analysis of risks faced by information technology offshore outsourcing service providers , 2014, IET Softw..

[75]  Alexandre Dolgui,et al.  Outsourcing: definitions and analysis , 2013 .

[76]  Salma Imtiaz,et al.  Establishing trust in offshore software outsourcing relationships: an exploratory study using a systematic literature review , 2013, IET Softw..

[77]  Ilan Oshri,et al.  Realising the Real Benefits of Outsourcing: Measurement Excellence and Its Importance in Achieving Long Term Value , 2010, Global Sourcing Workshop.

[78]  Leslie P. Willcocks,et al.  A review of the IT outsourcing empirical literature and future research directions , 2010, J. Inf. Technol..

[79]  Prashant C. Palvia,et al.  A Framework for Global IT Outsourcing Management: Key Influence Factors and Strategies , 2002 .

[80]  Christoph Rosenkranz,et al.  Outsourcing 2.0: Towards an Innovation-Driven Process Model for Client-Vendor Relationships in Information Technology Outsourcing , 2017, Global Sourcing Workshop.

[81]  Outi Sievi-Korte,et al.  Software architecture design in global software development: An empirical study , 2019, J. Syst. Softw..

[82]  Pamela Abbott,et al.  Configurations of global software development: offshore versus nearshore , 2006, GSD '06.

[83]  W. Marsden I and J , 2012 .

[84]  D. Grant,et al.  Service quality and its relation to satisfaction and loyalty in logistics outsourcing relationships , 2010 .

[85]  Igor Aguilar Alonso,et al.  Early Study of IT Outsourcing in Public Organizations in the Province of Manabi - Ecuador , 2019, 2019 5th International Conference on Information Management (ICIM).

[86]  Erran Carmel,et al.  The Maturation of Offshore Sourcing of Information Technology Work , 2002, MIS Q. Executive.

[87]  R. Davison Offshoring information technology: Sourcing and outsourcing to a global workforce , 2006, Electron. J. Inf. Syst. Dev. Ctries..

[88]  O. I. Tukel,et al.  Outsourcing decision support: a survey of benefits, risks, and decision factors , 2006 .

[89]  Uday M. Apte Global Outsourcing of Information Systems and Processing Services , 1990, Inf. Soc..

[90]  Thomas Grechenig,et al.  Systematic literature review on agile practices in global software development , 2017, Inf. Softw. Technol..

[91]  Mahmood Niazi,et al.  A preliminary structure of software outsourcing vendors' readiness model , 2010, PROFES '10.

[92]  Pedro E. Colla,et al.  A Structured Framework for Managing Offshore Outsourcing Risks on Software Support Projects , 2010, SEAFOOD.

[93]  Jürgen Münch,et al.  A Rule-Based Model for Customized Risk Identification in Distributed Software Development Projects , 2010, 2010 5th IEEE International Conference on Global Software Engineering.

[94]  Rayhab Anwar,et al.  Systematic Literature Review of Knowledge Sharing Barriers and Facilitators in Global Software Development Organizations Using Concept Maps , 2019, IEEE Access.