Knowledge Transfer in IT Offshore Outsourcing Projects: An Analysis of the Current State and Best Practices

Abstract

Knowledge transfer is one of the most critical success factors in IT offshore outsourcing projects and in many cases extremely underestimated. Compared to inhouse or onsite projects, a much higher complexity appears in globally distributed projects. Not only language barriers but also other challenges such as cultural differences, diverse time-zones, distinct methods and approaches, as well as varied infrastructural equipment, may cause problems which negatively impact knowledge transfer, and in consequence, the overall success of a project. In order to minimize risks during knowledge transfer, we conducted a research study based on a literature review and expert interviews. The result of our study was a collection and description of best practices and the development of recommendations by linking proven solutions to identified problem areas.

Systematic Literature Review of Knowledge Sharing Barriers and Facilitators in Global Software Development Organizations Using Concept Maps

“…Many of the selected studies have highlighted ''technological gap'' as one of the major factor that impedes KS [19], [38], [44], [51], [56], [58], [61]. In globally dispersed teams, technological knowledge gaps arise due to difference in experience and educational background.…”

“…Many studies have found that poor organizational culture negatively influence KS [19], [21], [32], [33], [35], [43], [46], [51], [61]. An unstable organizational structure and hierarchy leads to flaws in proper KS.…”

Why They Do Not Understand -- A Model of Knowledge Discourse in the Transition Phase of Globally Distributed Projects

“…Knowledge transfer has been studied in a variety of business and governmental settings, including political alliances, joint ventures, independent firms, and mergers and acquisitions [14,22]. However, our literature review revealed that only a few researchers [e.g.…”

“…While several scholars have studied structured knowledge transfer [8,14], only a few have investigated unstructured knowledge transfer [15]. Thus, in this research we explore the complexities of unstructured knowledge transfer in offshore outsourced software development (OOSD) projects, with a particular focus on the challenges faced by SMEs.…”

Portfolio Cost Management in Offshore Software Development Outsourcing Relationships from Vendor’s Perspective: a Systematic Literature Review Protocol

“…But there is a need to understand that why some services are produced in house and why others are contracted out [4]. Client organizations outsource their work offshore when they expect the market to be more cost efficient or when they believe skills, knowledge or experience are available via the market that are not available in-house [5]. OSDO is not a risk free business; however it also drew tending due to complexity and high quality software development.…”