Effectiveness Analysis of Distributed Scrum Model Compared to Waterfall approach in Third-Party Application Development

Abstract Scrum is widely used to manage application development, including third-party vendors. There are some problems when third-party vendor using scrum such as communication challenges, lack of control, and lack of trust. Therefore, we proposed new model of distributed scrum using Scrum of Scrum and Holonic view to manage an application development project in third party vendors. In this study we created 3 model, Scrum Team Model, Meeting Coordination Model, and Product Backlog Model. In this study it has been shown that the Distributed scrum method is better than waterfall method as a result of the project’s success based on scope, time, and cost aspects. Based on the comparison result, it is found that the Cost Performance Index (CPI) and the Schedule Performance Index (SPI) value of the waterfall approach project is smaller than the Distributed scrum approach project as well as the change request issued by the Distributed scrum project resulting is less than the waterfall project.