Managing offshore outsourcing in the software industry

The objective of this research paper is to investigate the fundamental role of managers in guiding and growing relationships of offshore software outsourcing partnerships. Offshore outsourcing allows businesses to reduce costs, increase shareholder value, gain competitive advantage, decrease cycle time, improve customer loyalty, gain staffing flexibility and increase revenue, and ultimately allows a business to focus on its core competencies. This study provides a strategic analysis on the key advantages and disadvantages between a contracted source vs a wholly owned offshore outsourcing subsidiary. The paper was focused on the dynamics of the management relationship with a look at how culture, language and the legal systems in foreign countries contribute to the overall outcome of offshore outsourcing ventures.