From the Client’s Perspective: Exploring the Software Development Model of Offshore IS Outsourcing

Hwang-Yeh Chen

Department of Accounting Information
Tzu Chi College of Technology

Abstract

Offshore IS outsourcing is the practice of distributed work to IS service suppliers outside the host country, particularly in the area of outsourced software development. Software development work requires more intense communication and coordination including initiation and planning, coding, testing, implementation and maintenance. Offshoring operation inevitably increases the difficulty and complexity of software development work. This study examines the success factors and intends to develop the collaboration model within the context of offshoring software development projects. The case study methodology is used to examine the collaboration mechanisms and relationships of offshore software development between high-tech client firms and their service providers. Qualitative data are collected through interviews, documentation and non-participant observation with the analysis unit based on each software development project. This study discusses the components consisting of globally distributed development setting and the difficulties associated with offshore software development. As a result, the derived collaboration model for IS software development aims to address the potential hidden costs and leads to the success of outsourcing relationships by facilitating the communication and coordination of offshore software development.

Keywords：information systems outsourcing, software development, transaction cost economics (TCE), relationship theories