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.

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