Addressing Risks in Global Software Development and Outsourcing

Abstract

This article describes how outsourcing and offshoring for software development is a widely used business strategy implemented by many organizations worldwide. Due to its significant benefits, project managers can accrue greater flexibility, lower labor costs, and have access to skilled workers, which are the advantages of outsourcing and offshoring in global software development (GSD). Though there are advantages and benefits to incorporating this business practice, there are risks associated with it as well. Therefore, it is necessary and vital to discuss the challenges and risks that may arise which the project managers should consider before establishing and implementing such a project, to ensure a successful project result. The objective of this research is to identify the challenges and risks involved in GSD and discuss a risk management plan based on these factors. This article has found that communication issues and cultural differences are primary causes of most risks identified. To minimize the risks associated with GSD, these factors must be minimized.