A comparative study of important risk factors involved in offshore and domestic outsourcing of software development projects: A two-panel Delphi study

We investigated the risk factors of outsourced software development. Our first objective was to create empirically generated lists of risk factors for both domestically- and offshore-outsourced projects. Our second objective was to compare these two contexts: how do the risk factors change and which ones are most important in each. To address these objectives, we conducted two Delphi surveys to identify the important risk factors from a client perspective, in domestic and offshore settings. We qualitatively compared the results of the surveys to identify similarities and differences across their risk profiles. We identified three types of risks: those that appeared in both contexts; those that appeared in both but were exacerbated in the offshore context; and those that were unique to the offshore context. Our findings suggested that traditional project management risks were important in both contexts; however, the offshore context seemed to be more vulnerable to some traditional risks as well as factors that were unique to it.