Critical challenges in execution of offshore software outsourcing contract from vendors' perspective: A systematic literature review

Abstract

Offshore software development outsourcing (OSDO) is a Global Software Engineering paradigm used for developing cheaper and high quality software at low-wages countries. OSDO is a contractual relationship between client and vendor organisations; where an efficient management of the contract plays a vital role in the success of the outsourcing project. We have used systematic literature review to find out various challenges faced by OSDO vendors at various stages of the outsourcing contract. The identified list of challenges include `lack of project management', `lack of outsourcing management', `cultural and linguistic issues', `poor monitoring system', `IPR and regulatory issues', `noncompetitive price', `lack of negotiation strategies', `unforeseen contingencies' and `failure to manage end-user expectation'. Our finding illustrate the similarities and dissimilarities in the challenges identified in different continents. We have categorized the various challenges according to various stages of outsourcing contract. The proper consideration of the identified challenges by vendor organisations lead them to success of OSDO contract.