Solutions for Critical Challenges in Offshore Software Outsourcing Contract

Software outsourcing is a contract based relationship between client and vendor organisations, where the client organisation makes a contract for all or part of software-development activities with the vendor organisation(s) that provide agreed services in return for remuneration. Efficient outsourcing contract can yield in successful outcomes of the outsourced projects”. In our previous work we have identified nine critical challenges (e.g., „lack of project management‟, „poor monitoring system‟, „lack of outsourcing relationship management‟, „culture and linguistic issues‟, „non-competitive price‟, „IPR and regulatory issues‟, „failure to manage end-users expectation‟, „lack of negotiation strategies‟ and „unforeseen contingencies‟) faced by vendors in managing and execution of offshore software development outsourcing (OSDO) contract. In this paper, our research methodology is composed of both empirical study in OSDO industry and systematic literature review. Based on the aforementioned two well-known methodologies we have identified 91 practices/solutions in total to assist vendor organizations in addressing these nine critical challenges. Implementation of the identified practices will assist in avoidance/mitigation of the critical challenges faced by vendors in management and execution of OSDO contract.