Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
skip to main content
research-article

Establishing trust in offshore software outsourcing relationships: : an exploratory study using a systematic literature review

Published: 01 October 2013 Publication History

Abstract

Offshore software outsourcing is a widely used business strategy for producing high‐quality software at low cost. Trust plays a vital role in establishing the offshore software outsourcing relationships between client and vendor organisations. The objective of this research study is to identify factors via systematic literature review (SLR) that are important for establishing trust in offshore software outsourcing relationships. The authors have performed an SLR by applying the customised search strings, which were derived from the research questions. The authors have identified factors such as face‐to‐face meeting, better communication, contract management between client and vendor, defining processes, tools, procedures and policies, reliable management, knowledge sharing, mutual expectations, better client‐vendor relationship and training programmes that are generally considered critical for establishing trust in offshore software outsourcing relationships. The results also reveal the similarities and differences in the factors identified through different study strategies and in different continents. Offshore software outsourcing companies should focus on the frequently cited factors in order to compete in the offshore software outsourcing business.

9 References

[1]
Ali-Babar, M., Verner, J., Nguyen, P.: ‘Establishing and maintaining trust in software outsourcing relationships: an empirical investigation’, J. Syst. Softw., 2007, 80, (9), pp. 1438–1449
[2]
Warner, M.E., Hefetz, A.: ‘Insourcing and Outsourcing’, J. Am. Plan. Assoc., 2012, 78, (3), pp. 313–327
[3]
Khan, S.U., Niazi, M., Rashid, A.: ‘Barriers in the selection of offshore software development outsourcing vendors: an exploratory study using a systematic literature review’, J. Inf. Softw. Technol., 2011c, 53, (7), pp. 693–706
[4]
Bush, A.A., Tiwana, A., Tsuji, H.: ‘An empirical investigation of the drivers of software outsourcing decisions in Japanese organizations’, Inf. Softw. Technol. J., 2008, 50, (6), pp. 499–510
[5]
McLaughlin, L.: ‘An eye on India: outsourcing debate continues’, IEEE Softw., 2003, 20, (3), pp. 114–117
[6]
Chou, D.C., Chou, A.Y.: ‘Innovation outsourcing: Risks and quality issues’, Comput. Stand. Interfaces, 2011, 33, pp. 350–356
[7]
Khan, S.U., Niazi, M., Ahmed, R.: ‘An empirical investigation of success factors for offshore software development outsourcing vendors’, IET Softw., 2012, 6, (1), pp. 1–15
[8]
Holmstrom, H., Conchúir, E.Ó., Ågerfalk, P., Fitzgerald, B.: ‘Global software development challenges: a case study on temporal, geographical and socio-cultural distance’. Int. Conf. Global Software Engineering, 2006, pp. 3–11
[9]
Damian, D., Izquierdo, L., Singer, J., Kwan, I.: ‘Awareness in the wild: why communication breakdowns occur’. Int. Conf. Global Software Engineering, 2007, pp. 81–90
[10]
Khan, S.U., Niazi, M., Ahmad, R.: ‘Barriers in the selection of offshore software development outsourcing vendors: an exploratory study using a systematic literature review’, Inf. Softw. Technol., 2011a, 53, (7), pp. 693–706
[11]
Palacio, R.R., Moran, A.L., Gonzalez, V.M., Vizcaino, A.: ‘Selective availability: coordinating interaction initiation in distributed software development’, IET Softw., 2012, 6, (3), pp. 185–198
[12]
Cataldo, M., Bass, M., Herbsleb, D.J., Bass, L.: ‘On Coordination Mechanisms in Global Software Development’. Int. Conf. Global Software Engineering, 2007, pp. 71–80
[13]
Khan, S.U., Niazi, M.: Critical challenges in offshore software development outsourcing: an empirical study’. Int. IASTED Conf. Software Engineering SE 2012, Greece, June 2012
[14]
Mishra, D., Mishra, A.: ‘Research trends in management issues of global software development: evaluating the past to envision the future’, J. Glob. Inf. Technol. Manag., 2011, 14, (4), pp. 48–69
[15]
Nguyen, P., Ali-babar, M., Verner, J: ‘Trust in software outsourcing relationships: an analysis of Vietnamese practitioners’ views’. Evaluation and Assessment in Software Engineering, June 2006, pp. 10–19
[16]
Oza, N.V., Hall, T., Rainer, A., Grey, S.G.: ‘Trust in software outsourcing relationships: an empirical investigation of Indian software companies’, Inf. Softw. Technol., 2006, 48, (5), pp. 345–354
[17]
Stark, J., Arlt, M., Walker, D.H.T.: ‘Outsourcing decisions and models – some practical considerations for large organizations’. Int. Conf. Global Software Engineering, 2006, pp. 12–17
[18]
Sabherwal, R.: ‘The role of trust in outsources IS development projects’, Commun. ACM, 1999, 42, pp. 80–86
[19]
Khan, S.U.: Software outsourcing vendors’ readiness model (SOVRM), PhD thesis, Keele University, UK, 2011
[20]
Hongxun, J., Honglu, D., Xiang, Y., Jun, S.: ‘Research on IT outsourcing based on IT systems management’. ACM Int. Conf. Proc. Series, 2006, vol. 156, pp. 533–537
[21]
Gallivan, M.J., Oh, W.: ‘Analyzing IT Outsourcing Relationships as Alliances among Multiple Clients and Vendors’. Proc. 32nd Hawaii Int. Conf. System Sciences. Hawaii, USA, 1999
[22]
Lee, J.N., Choi, B.: ‘Effects of initial and ongoing trust in IT outsourcing: a bilateral perspective’, Inf. Manag., 2011, 48, (2), pp. 96–105
[23]
Oza, N.V.: ‘An empirical evaluation of client – vendor relationships in Indian software outsourcing companies’, PhD thesis, University of Hertfordshire, UK, 2006
[24]
Kim, K., Prabhakar, B.: ‘Initial trust, perceived risk, and the adoption of internet banking’. Proc. 21st Int. Conf. Information systems. Brisbane, Queensland, Australia, Association for Information Systems, 2000
[25]
Oza, N.V., Hall, T., Rainer, A., Grey, S.G.: ‘Trust in software outsourcing relationships: an empirical investigation of Indian software companies’, Inf. Softw. Technol., 2006b, 48, (5), pp. 345–354
[26]
Mitchell, A., Zigurs, I.: ‘Trust in virtual teams: solved or still a mystery?’, DATA BASE for Adv. Inf. Syst., 2009, 40, (3), pp. 61–83
[27]
Meyerson, D., Weick, K.E., Kramer, R.M.: ‘Swift trust and temporary groups’, in Kramer, R.M., Tyler, T.R. (Eds.): ‘Trust in Organizations’. (London, Sage Publications, 1996)
[28]
Kitchenham, B., Charters, C.: ‘Guidelines for performing systematic literature reviews in software engineering’. Keele University and Durham University Joint Report, EBSE 2007–001, 2007
[29]
Kitchenham, B., Charters, C.: ‘Guidelines for performing systematic literature reviews in software engineering’, Keele University and Durham University Joint Report. EBSE 2007–001, 2007
[30]
Khan, S.U., Niazi, M., Ikram, N.: ‘Systematic literature review protocol for software outsourcing relationships trust (SORT)’. TR/2009-01, School of Computing & Maths, Keele University, UK, 2009
[31]
Khan, S.U., Niazi, M., Ikram, N.: ‘Software development outsourcing relationships trust: a systematic literature review protocol’. Evaluation and Assessment in Software Engineering, EASE 2010. Keele University, UK, 2010
[32]
Chou, D.C., Chou, A.Y.: ‘Information systems outsourcing life cycle and risks analysis’, Comput. Stand. Interfaces, 2009, 31, (5), pp. 1036–1043
[33]
Hagel, J., Brown, J.S.: ‘The Only Sustainable Edge’ (Harvard Business School Press, Boston, 2005)
[34]
Bhatnagar, S.C., Madon, S.: ‘The Indian software industry: moving towards maturity’, J. Inf. Technol., 1997, 12, (4), pp. 277–288
[35]
Terdiman, R., Karamouzis, F.: ‘Going offshore to globally source IT services’. Technical report, Gartner Research, 2002
[36]
Bradstreet, D.: Dun and Bradstreet's barometer of global outsourcing, http://findarticles.com/p/articles/mi_m0EIN/is_2000_Feb_24/ai_59591405, September 2000
[37]
McCue, A.: ‘Outsourcing flops blamed on tunnel vision’ (Silicon.com, Published on ZDNet News, June 22, 2005)
[38]
Fabriek, M., Brand, M., Brinkkemper, S., Harmsen, F., Helms, R.: ‘Reasons for success and failure in offshore software development projects’. European Conf. Information Systems, Ireland, 2008, pp. 446–457
[39]
Gupta, B., Iyer, S.L., Aronson, E.J.: ‘Knowledge management: practices and challenges’, Ind. Manag. Data Syst., 2000, 100, (1), pp. 17–21
[40]
Alam, A.U., Khan, S.U.: ‘Knowledge sharing management in offshore software development outsourcing relationships from vendors' perspective: a systematic literature review protocol’. 15th Malysian Software Engineering Conf., Puteri Pacific, MySEC, 2011, pp. 469–474
[41]
Park, J.Y., Im, K.S., Kim, J.S.: ‘The role of IT human capability in the knowledge transfer process in IT outsourcing context’, Inf. Manag., 2011, 48, pp. 53–61
[42]
Nauman, A.B., Aziz, R., Ishaq, A.F.M., Mohsin, M.: ‘An analysis of capabilities of Pakistan as an offshore IT services outsourcing destination’. Proc. IEEE Eighth Int. INMIC, Multitopic Conf., 2004, pp. 403–408
[43]
Martin, B.: ‘An introduction to medical statistics’ (Oxford Medical Publications, 2000, 3rd edn.)
[44]
Zhang, N.: ‘An analysis framework of factors influencing China software and information service offshore outsourcing’. IEEE Fifth Int. Conf. Information Technology: new Generations, 2008. ITNG 2008. USA, 2008, pp. 875–880
[45]
Aramo-Immonen, H., Jaakkola, H., Linna, P.: ‘Trust building in globalized software engineering: a cultural perspective’, J. Glob. Inf. Technol. Manag., 2011, 14, (4), pp. 28–47
[46]
Colomo-Palacios, R., Casado-Lumbreras, C., Soto-Acosta, P., Misra, S., García-Peñalvo, F.J.: ‘Analyzing Human Resource Management Practices Within the GSD Context’, J. Glob. Inf. Technol. Manag., 2012, 15, (3), pp. 30–54
[47]
Blois, K.J.: ‘Trust in business to business relationships: an evaluation of its status’, J. Manag. Stud., 1999, 36, (2), pp. 197–215
[48]
Kanawattanachai, P., Yoo, Y.: ‘Dynamic nature of trust in virtual teams’, J. Strateg. Inf. Syst., 2002, 11, (3–4), pp. 187–213
[49]
Burgess, R.L., Huston, T.L.: ‘Social exchange in developing relationships’ (Academic Press, 1983)
[50]
Deluga, R.J.: ‘Supervisor trust building, leader-member exchange and organizational citizenship behaviour’, J. Occup. Organ. Psychol., 2011, 67, (4), pp. 315–326
[51]
García-Crespo, Á., Colomo-Palacios, R., Soto-Acosta, P., Ruano-Mayoral, M.: ‘A qualitative study of hard decision making in managing global software development teams’, Inf. Syst. Manag., 2010, 27, (3), pp. 247–252
[52]
Khan, S.U., Niazi, M., Ahmad, R.: ‘Factors influencing clients in the selection of offshore software outsourcing vendors: an exploratory study using a systematic literature review’, J. Syst. Softw., 2011b, 84, (4), pp. 686–699

Recommendations

Comments

Information & Contributors

Information

Published In

cover image IET Software
IET Software  Volume 7, Issue 5
October 2013
45 pages
EISSN:1751-8814
DOI:10.1049/sfw2.v7.5
Issue’s Table of Contents

Publisher

John Wiley & Sons, Inc.

United States

Publication History

Published: 01 October 2013

Author Tags

  1. outsourcing
  2. trusted computing

Author Tags

  1. trust
  2. offshore software outsourcing relationships
  3. business strategy
  4. high-quality software
  5. client organisations
  6. vendor organisations
  7. systematic literature review
  8. customised search strings
  9. face-to-face meeting
  10. contract management
  11. reliable management
  12. knowledge sharing
  13. mutual expectations
  14. client-vendor relationship
  15. training programmes
  16. offshore software outsourcing companies
  17. frequently cited factors
  18. offshore software outsourcing business

Qualifiers

  • Research-article

Contributors

Other Metrics

Bibliometrics & Citations

Bibliometrics

Article Metrics

  • 0
    Total Citations
  • 0
    Total Downloads
  • Downloads (Last 12 months)0
  • Downloads (Last 6 weeks)0
Reflects downloads up to 27 Jan 2025

Other Metrics

Citations

View Options

View options

Figures

Tables

Media

Share

Share

Share this Publication link

Share on social media