Software outsourcing model for risk mitigation

Abstract

Software outsourcing is the exchange of projects, tasks, resources or activity in distributed environment. Due to mismanagement and wrong decision making in outsourcing tasks there is significant increase in outsourcing risks such as lack of project management; cost savings, specialized human resources, etc. The objective of this study is to comprehensively analyze the risks that are associated with the process of outsourcing and identify the strategies that could be applied to mitigate those risks. We performed a literature review to derive the risks of outsourcing highlighted in existing literature. Then we proposed a model to mitigate the software outsourcing process risks. To empirically evaluate our outsourcing risk mitigation model we have performed case study to overcome the barriers and risks that have a negative impact on the process of selecting outsourcing. Our results indicate that by adopting proposed model two major risks i.e. wrong selection of vendor and communication between the client and the service provider were mitigated.