Critical Success Factors in Outsourcing: Case of Software Industry

In the software development arena, offshore outsourcing currently plays a dominant role in the composition of today´s business environment. From the smallest startups to most major corporations, offshore outsourcing is touted as having major benefits for these companies alike. Offshore Outsourcing allows businesses the ability to reduce costs, increase shareholder value, gain competitive advantage, decrease cycle time, improve customer loyalty, gain staffing flexibility, increase revenue, and ultimately allows a business to focus on its core competencies. In theory, these facets should equal a successful venture when applied correctly. However, things are not always as they appear. There are a multitude of challenges that await each offshore outsourcing endeavor. Just as there are a plethora of software programmers from a large number of developing nations waiting to capture a portion of this maturing trend, there are also a variety of challenges that await their prospective employers. The objective of this research paper is to investigate the fundamental role of managers in guiding and growing the relationships of the offshore outsourcing partnership.