Attached.

Running head: OFFSHORE SOFTWARE OUTSOURCING

An Insight into Key Aspects of Offshore Software Outsourcing

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OFFSHORE SOFTWARE OUTSOURCING

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The purpose of the present paper is to analyze and discuss the role, process, and
importance of outsourcing in projects and subcontracting. An illustrating example is also
provided. It is argued that software outsourcing plays a major role in contemporary business and
companies producing software or which are in need of it are no exception to this phenomenon.
Software outsourcing can be defined as a contract-based relationship between an
organization and a customer where the customer contract out full or a portion of their software
development activity to a specific supplier or set of suppliers who is/are responsible to provide
specific services for remuneration. Software outsourcing has become very common in the
modern economy and it is regarded as an established business practice in the United States and
other countries (Khan & Khan, 2013).
The importance of software outsourcing is given by its potential impact on the business.
For instance, outsourcing a contract can require a significant coordination cost, and the inability
to achieve such a coordination can have a strong negative impact on the business. For this
reason, outsourcing requires a careful consideration of all the processes involved in it and the use
of theories and practices that have characterized past outsourcing projects. The most important
process in an outsourcing contract can be defined as belonging to either the pre-contract phase
and th...