Abstract

Global outsourcing is a pertinent issue in today’s business world. Increasingly, software and non-software organizations from private and public sectors are attempting to develop some or all of their software through global outsourcing in order to enhance innovation, reduce development time and cost, improve quality and productivity, adapt to changing global economic and market conditions, to name a few. Global outsourcing is composed of near shore outsourcing (the software development work is done by the service provider in a nearby country) and offshore outsourcing (the development work is done in a very far away country). Global outsourcing is gaining significant importance, as it can provide various important benefits to both the outsourcer and service provider, if it is successful. However, most of the organizations fail to obtain the expected benefits, as global outsourcing is highly complex and risky. Some global outsourcing projects fail totally.

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