Conference PaperPDF Available

Outsourcing for software applications development: issues, implications and impact.

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Abstract and Figures

Information technology has become one of the fastest-growing, fastest-changingmarkets in the world. The high demand on software applications and servicesis forcing more companies to turn to outsourcing to meet their customerneeds. We define software outsourcing as contracting out software services,operations, products or development of applications.This paper presents an overview of outsourcing in software development.In particular, we attempt to isolate some of the motivating factors for ...
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Outsourcing
Process
People Technology
In-HouseOutsourced
Software Application
Specialised Tasks
Not part of desired
competencies
Common Tasks
Not part of core
competencies
Specialised Tasks
In-House Development Outsourced Tasks
Control Tasks
Core competencies
Common Tasks
Core Competency
(Expertise not available in-house)
Outsourcer
- Bonding
- Monitoring
- Blending of Efforts,
- Benchmarks
Outsourcing Relationship Outsourcing Vendor
- Vendor selection and capacity
- Project plan
- Development processes & paradigms
- Identify core strategic specialities
- Resolve Ownership, IP, and liabilities
- Lines of authority for accepting changes
- change impact and propagation procedures
- Assurance that components meets technical
and operational requirements
- Components function correctly within
their intended operating environment
- Relationship
- Control
- Withdrawal from outsourcing decision
- Skills & capacity of vendor
- Delays on delivery time
- Changing requirements & environment
- Privacy and security
PLANNING
CONFIGURATION MANAGEMENT
- Availability
- Project plan
- Development processes & paradigms
- Specialities and expertise needed
- Resolve Ownership, IP, and liabilities
- change impact and propagation procedures
- Lines of authority for accepting changes
- Components function correctly
- Availability of required skills
- Changing requirements & environment
- Penalties
- Withdrawal of outsourcer
PLANNING
CONFIGURATION MANAGEMENT
VERIFICATION & VALIDATION
RISK MANAGEMENT
VERIFICATION & VALIDATION
RISK MANAGEMENT
Instigate and Manage
Outsourcing Relationship
Application
Development
- Technical people
support
- Market survey
- Feasibility study
- Time
- Technology
- Control
- Trust
- Safety
- Expertise
- Cost
Alternative
(points inside reflect
technical inputs needed)
Uncertain
core
non
core
- Expertise
- Interest
- Technology
- Time
- Cost
In-house
In-house
Selective Outsourcing
Total Outsourcing
Selective Outsourcing
Strongly Coupled
Company’s Situation
* How strong is the company’s
competitive position?
* What are the company’s strengths,
weaknesses, opportunities, and threats?
* What are the company’s key
competencies?
* How far does change is the industry
affect the company’s business?
* Which company’s are in the strongest/
weakest competitive positions?
*What are the industry’s dominant traits?
Key Factors
* Cost saving
* Time
(meeting deadlines, first to market,..)
* Human Resources and expertise
* Competition
* Globalisation
* Specialisation and focus
* Alliances and partenrships
* Technology
* Process
* Capability development
Key Questions
* Does outsourcing have good fit with
* Is there vendor/s that meet company
* Have all internal alternatives been
evaluated?
company’s strategy and situation?
requirements?
* Is it feasible?
* Will it improve performance/ time/ cost?
* Will it help build a copetitive advantage?
Key Criteria
Outsourcing Issues
* Capacity, availability, capability of
outsourcing vendors
* Scale/size of outsourcing (total/selective)
* Vendor Relationship
(strategic/ short term)
* Change, CM, and evolvability
* Performance measures
* Maintenance & system maintenability
reports, configuration mangement)
* Process visibility (documentation,
* Development paradigms
* System decomposition and interfaces
development tools, programming lang.)
* Technology (Platform, OS,
* Trust/ assurance
* Contract and conformance
* Ownership, IP, & location of source
* Frequency of use
* Bonding, monitoring, and coordination
efforts and resources
* Liability/ responsibility
* Flexibility and control
* Cost
Management
Technical
Drivers to Outsourcing
[ Yes/No, Who, When, What, Degree]
Taking The Decision
... Outsourcing of system development, integration, and maintenance is an important trend in IT services [2]. For a client, the outsourcer, contracting out work is a cost-effective way to hire expertise at a fixed price and get in return a system (or service) with a predefined quality, which includes timely delivery. ...
... A number of issues have to be resolved for successful outsourcing of systems, which in [2] are summarised as: control, ownership, development paradigms, assurance, and system decomposition. Typically these issues are addressed in the contracts and agreements. ...
Conference Paper
Full-text available
We discuss several difficulties managing evolving requirements by means of an industrial case study conducted at LogicaCMG. We report on setting up a requirements management system in an outsourcing context and its application in real-life. The experience results in several lessons learned, questions to be answered in the future on how to manage evolving requirements, and solution directions. We propose a conceptual framework of requirements engineering system tailored for outsourcing environments, which captures the experience results.
... In achieving maximum benefits amongst the outsourcing companies, necessity is placed on the positive relationship between the vendor and the client (Nie and Hammouda, 2017). Different researchers have outlined the maintaining elastic vendor and client relationship and this has created business values when outsourcing software (Abbas and Dart, 1998;Betz and Mäkiö, 2008). In understanding the distinct relationship in the outsourcing process has meant that proper arrangements have been made and issues of dependency have been achieved. ...
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... " In the case of software outsourcing the business function is the software development and a thirdparty service provider is a subcontractor enterprise. So, a more precise definition for this practice is given by R.Abbas et.al (1998) ...
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