Trajectories and Strategies in Global Software Outsourcing Relationships

Abstract

Global software outsourcing (GSO) is the outsourcing of software development to sub-contractors outside the client organisation’s home country. India remains the unquestioned leader, registering average annual growth of more than 40% over the last decade and developing some US$3.6bn-worth of software for foreign clients in 1999/2000 (Heeks, 2000). Advice for potential GSO clients counsels starting small, starting at home, and starting with programmers (McFarlan, 1996). Many client organisations have followed this advice, putting a toe into the GSO waters through small-scale body shopping: for example, having Indian sub-contractor staff come over to the client site to complete a minor, non-critical piece of coding/conversion work.