Critical Success Factors for Offshore Software Development Outsourcing Vendors: A Systematic Literature Review

Abstract

CONTEXT – Offshore software development outsourcing is a modern business strategy for producing high quality software at low cost. OBJECTIVE – To identify various Critical Success Factors (CSFs) that have a positive impact on software outsourcing clients in the selection process of offshore software development outsourcing vendors. METHOD – We have performed a Systematic Literature Review process for the identification of factors in the selection process of offshore software development outsourcing vendors. RESULTS – We have identified factors ‘cost-saving’, ‘skilled human resource’, ‘appropriate infrastructure’ and ‘quality of product and services’ that are generally considered important by the outsourcing clients. The results also reveal the similarities and differences in the factors identified in different continents. CONCLUSIONS – Cost-saving should not be considered as the only prime factor in the selection process of software development outsourcing vendors. Vendors should have to address other factors in order to compete in the offshore outsourcing business.