A Structured Framework for Managing Offshore Outsourcing Risks on Software Support Projects

Offshoring software is being increasingly used by the IT industry since companies pursue the value derived from this model. At the same time, the distributed operation is more complex as it creates specific processes, technology, support, communication, quality risks and issues to address. As this list grows, part of the value obtained might then be destroyed together with the returns originally forecasted. The actions derived to manage the involved risks must be perceived as essential components to be inspected during the execution of any offshoring project. This paper addresses this topic by proposing a structured framework to identify and understand these risks and to facilitate their mitigation. Focus is placed on software support since a particular set of considerations needs to be examined. The proposal is then consolidated in a group of practices to perform a structured risk management. Application examples, conclusions and further work needed are discussed.