The effect of onsite-offshore work division on project cost, schedule, and quality for re-engineering projects in Indian outsourcing software industry

Purpose – The aim of this paper is to make an attempt to find good values of onsite–offshore team strength; number of hours of communication between business users and onsite team and between onsite and offshore team to reduce cost and improve schedule for re-engineering projects in global software development environment. Design/methodology/approach – The system dynamics technique is used for simulation model construction and policy run experimentation. The experts from Indian software outsourcing industry were consulted for model construction, validation and analysis of policy run results in both co-located and distributed software development environment. Findings – The study results show that there is a drop in the overall team productivity in outsourcing environment by considering the offshore options. But the project cost can be reduced by employing the offshore team for coding and testing work only with minimal training for imparting business knowledge. The research results show that there is a pot...