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The purpose of this article is to examine why US companies outsource software development offshore and to present the factors to be considered to determine if the benefits of offshore outsourcing outweigh the drawbacks. Is offshoring worth it in terms of cost savings and quality? What are the risks associated with offshoring software development, and how can you hedge against such risks? What types of software should be considered for offshoring? How can you recognize the danger signs of offshore work going awry? Are there alternatives to outsourcing software development offshore, or are there alternative ways to offshore? Offshore outsourcing of software development may not be worth the risk in all cases. However, in the cases that it is worth moving offshore, this paper makes suggestions about how to help ensure success. This article presents advantages, disadvantages, risks and alternatives to offshore outsourcing of software development. Also, it provides alternatives for offshore outsourcing that will be useful for any company or individual considering offshore outsourcing.

The purpose of the paper is to find out the knowledge requirements and its effect on both onsite and offshore project work division for development, re-engineering and maintenance projects in Indian outsourcing software industry in different phases of software development.

This study employs an expert interview approach in Indian software industry to find out knowledge requirement for project execution and division of work between onsite and offshore locations. The requisite data were collected through expert interviews and direct observations.

The study found that the development projects require higher level of domain, strategic, business process and operation process knowledge in comparison to re-engineering and maintenance projects. So there is a need of higher onsite presence in development projects. The maintenance work is taken up at the offshore location in a phase-wise manner.

The implication of the study is in the development of a broad framework of knowledge requirements and work division in on-shore and offshore locations for Indian software outsourcing projects. As the study is based on expert opinion in the context of India, it cannot be generalized for outsourcing scenarios elsewhere.

The software project manager can use the findings to get more insight into the project and divide the software team between onsite and offshore location.

The study is novel, as there is little attempt at finding the knowledge requirement to execute various kinds of business software development in outsourcing environment in the context of India.

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.

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.

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 potential to save project cost by being flexible in project schedule.

The study found that there could be substantial cost saving for re-engineering projects with a loss of project schedule when an appropriate onsite–offshore combination is used. The quality and productivity drop, however, were rather small for such combinations. The cost savings are high when re-engineering work is sent to offshore location entirely after completion of requirement analysis work at onsite location and providing training to offshore team in business knowledge The research findings show that there is potential to make large cost savings by being flexible in project schedule for re-engineering projects.

The software project manager can use the model results to divide the software team between onsite and offshore location during various phases of software development in distributed environment.

The study is novel as there is little attempt at finding the team distribution between onsite and offshore location in global software development environment.

This study aims to develop a model for coordination and communication overhead in distributed software development through case study analysis in the Indian outsourcing software industry. The model is based on business knowledge, which can be classified as domain, regulatory, strategic, business process and operation process knowledge as per existing literature.

Double case study method was used to verify an existing knowledge–management framework of software development from the literature. The stakeholders of both the cases were interviewed, and project documents were verified to reach conclusions.

The findings supported the business knowledge classification from the literature. The concept can be used to analyze the software project in a distributed environment.

The research work findings are based only on two case studies. The study findings cannot be generalized and should be used as a learning tool. There can be large variations of project characteristics with differences in business knowledge requirements. The research shows the importance of business knowledge transfer in global software development.

Projects managers in the distributed software development environment can use the findings in project planning and work allocation for better control over cost and schedule, etc.

There is little research works attempted to study the business knowledge classification in the global software industry making the research novel.

“The offshore installations and wells (design and construction, etc.) regulations” (DCR) requires that all safety‐critical elements in both the system and software domains be assessed and evaluated. In this paper, following a brief review of offshore system (application) safety analysis, offshore software safety analysis is introduced. It is followed by a study of combining offshore system safety analysis with software safety analysis. The typical standards for the development of safety‐critical systems in several industrial sectors are discussed with particular reference to formal methods. A generic offshore software safety analysis framework is proposed with discussions. Formal methods for producing safety requirements specifications are then discussed. A case study is used to demonstrate safety requirements modelling for safety‐critical software development. Finally recommendations for further development in offshore software safety analysis are given.

The paper aims to study manpower dynamics at offshore and onsite location for maintenance project, which are transferred to offshore location in a phase-wise manner. The purpose of the paper is to find good values of onsite–offshore team strength, the number of hours of communication between onsite and offshore teams for smooth transfer of software maintenance project to offshore location.

This study uses system dynamics simulation approach to study manpower allocation at onsite and offshore locations to transfer the maintenance work to offshore location in a gradual manner. The authors consulted 13 experts from Indian software outsourcing industry during the model construction and validation.

The simulation results show that the complexity of maintenance project has an insignificant effect on offshore migration. The maintenance work transfer should start with initial onsite team strength higher than that of required for ticket solving and project. The initial offshore team strength should be based on training capacity available at the onsite location. The higher attrition rate at an offshore is detrimental for offshore migration.

The implication of the study is in the development of a broad framework of software maintenance work transfer to offshore locations for Indian software outsourcing projects. As the study is based on expert opinion in the context of India, it cannot be generalized for outsourcing scenarios elsewhere.

The software project manager can use the findings to get more insight into maintenance project offshore migration and divide the software team between onsite and offshore location.

The study is novel as there is little attempt at finding the manpower composition at onsite and offshore locations for software maintenance project during the migration phase.

The purpose of this study is to investigate the effects of knowledge sharing on innovativeness in offshore outsourced software development firms.

For the study, a survey methodology was used, and 408 respondents attached to offshore outsourced software development firms in Sri Lanka responded. The hypothesized relationships were examined by structural equation modelling.

The analysis yielded a two-component factor structure for knowledge sharing, which were termed as knowledge sharing practices and knowledge availability. It was found that both knowledge sharing practices and knowledge availability significantly positively predict innovativeness. The study provided empirical data to support the contention that organizations should be able to timely deliver knowledge to the right user to enhance innovativeness.

The findings suggest the importance of creating an environment conducive for software developers to share information, insight, lessons learned and effective practices. Further, organizations have to establish a mechanisms to capture and capitalise knowledge residing in employees.

In the knowledge-intensive offshore business sectors such as software development, economic value is found more in intangibles and less in tangibles. The sharing of knowledge leads to the dissemination of innovative ideas, which could improve work processes and develop new business opportunities. Therefore, it is important to conduct research that would lead to better understand drivers that enhance the innovativeness of service offerings of firms located in developing countries when competing internationally in offshore outsourced software development.

This paper aims to explore the expertise level required in various kinds of business knowledge such as regulatory, domain, strategic, operation process and, business process to execute globally distributed software projects for development, re-engineering and maintenance projects in the Indian outsourcing software industry.

This study adopted a questionnaire survey method to collect the expert responses for a knowledge management framework which is suggested in the literature for software development work. The questionnaire survey findings were verified by expert interviews.

The research shows that there is a lot of similarity between re-engineering and maintenance projects for different kinds of business knowledge expertise requirements for execution. The development projects require higher expertise in all the business knowledge for execution.

The research work studies the business knowledge required for the execution of development, re-engineering and maintenance projects in Indian outsourcing software projects. However, the project’s characteristics can vary drastically for a single kind of project. So the study cannot be generalized and instead should be used as a tool for learning.

The research findings can be used by software project managers to get insight into project planning, which can help the division of work between the onsite, offshore team and individual work allocation.

The research is novel as there are very few previous attempts to find the business expertise needed to execute various kinds of software projects in the Indian outsourcing industry.

Advances in information technology coupled with the need to build resilience against disruptions by pandemics like COVID-19 continue to emphasize offshoring services in the software industry. Service-level agreements (SLAs) have served as a key mechanism for safeguarding against risk in offshore service arrangements. Yet, variations in service cost and quality persist. This study aims to open up the blackbox linking SLAs to offshore project outcomes by examining (1) how the provisions in these contracts affect the ability of project teams – the work unit primarily in charge of producing the offshored service – to achieve their objectives and fulfill client requirements and (2) how differences in contextual factors shape the effects of these provisions.

The authors incorporate the role of organizational work practice differences to understand the challenges that 270 offshore project teams faced in coordinating and integrating technical and business domain knowledge across organizational boundaries in offshore arrangements. The examined offshore IT projects were managed by a leading software vendor in India and several of its US-based clients over a three-year period.

The authors demonstrate that organizational work practice differences represent a barrier to offshore project success, and that project team transition processes are an important mechanism for overcoming these barriers. Moreover, the authors find that transition processes represent key mediating mechanisms through which SLA provisions affect offshore project outcomes.

The study findings shed light on how SLAs shape software project teams' balance between activities aimed at meeting client needs and those aimed at containing costs.

This paper aims to explore the concept of early warning signs (EWSs) in offshore-outsourced software development (OOSD) projects at the team level. It also aims to identify the EWSs of failure in the onshore-offshore project context and understand how they are perceived by responsible managers.

A grounded theory approach is followed by gathering data from 19 failed OOSD projects using project managers from client and vendor sides as the key informants.

This study identified 13 EWSs of failure in five categories of trust and team cohesion, common project execution structures, awareness of shared work context, collaboration between teams and onshore-offshore team coordination capabilities. EWSs were found to comprise two components: early warning issues and early signals of failures.

India-based vendors’ data in the study formed the primary weakness of the work regarding generalizability, even though it brought homogeneity to data. Lack of triangulation of failure data through client or vendor peers proved impossible in this research as failure remains a very sensitive topic. Dual composition of EWSs could be applied to institutionalize an early warning tool in projects.

The paper develops an exploratory model of EWSs of failure and project failure in the OOSD project context. The two-component framework of EWSs allows project managers to eliminate false positives while identifying EWSs. It contributes to the information system failure, risk management and information technology offshoring research streams.