Towards a Framework for Offshore Outsource Software Development Risk Management Model

Abstract

Due to high demands on cost savings in software development projects, offshore outsource software development is becoming increasingly popular. Offshore outsourcing takes advantages of large labor pool in low- wage countries, round-the-clock development, and easy access to additional resources, in addition to the development cost savings. However, there are risks associated to this trend, as it brings new challenges into the development process, where some may even jeopardise the cost savings. The geographical and cultural distance is one part of the problem, inexperienced developers and lack of communication and a common cultural basis are other challenges. We therefore advocate the use of risk management (RM) to control risks in offshore outsource development. Here we present a RM framework tailored for such development contexts. The model; Goal-driven Software Development Risk Management modelling (GSRM) framework, assesses and manages risk during the early development phases, where risks can easier be tackled at a reasonable cost. The framework is comprised of four layers that together identify and link project goals, risks and treatments together in a goal-risk causal relationship model. The goal model makes use of an extended subset of the KAOS goal modelling language. We report on a study project focusing on the efficiency of the GSRM process model.