International Trade Managing Offshoring Software Projects From

International Trade

Managing Offshoring Software Projects From U.S.-based Locations

In the article and research cited in An Empirical Investigation of Client Managers Responsibilities on Managing Offshore Outsourcing of Software-Testing Projects (Jain, Poston, Simon, 2011) the dynamics of outsourcing alliances with American companies and Indian service providers' shows signs of becoming more efficient through the use of collaboration technologies and more effective quality management techniques. The cultural, ethical and financial implications of Indian outsourcers becoming more efficient in working with American companies are having a risk reduction effect in the short-term and an acceleration of innovation in the long-term (Zhao, Watanabe, 2010). From a social perspective, Indian outsourcers are finding strategies for attaining a higher level of customer satisfaction level not attainable in previous iterations of their business models (Bairi, Manohar, 2011).

Analysis

The cumulative effect of ethical, cultural and financial factors on the operations of Indian outsourcers throughout the United States continues to mature rapidly, bringing an entirely new level of integrative insight and knowledge into clients' operations. This integrative nature of operations begins at the shared expectations and experiences levels with regard to projects (Jain, Poston, Simon, 2011). There is more congruence of project programs and plans than there ever has been in the past due to the reliance on Enterprise Quality and Compliance Management (ECQM) and Six Sigma techniques to quantify expectations and experiences of outsourcers and clients in the U.S. (Bairi, Manohar, 2011). Cultural alignment is being achieved through greater reliance on techniques and strategies for mitigating the differences between cultures (Jain, Poston, Simon, 2011). The Hofstede Model of Cultural Dimensions (Hofstede, 1983) is one of several frameworks actively being used by outsourcing providers to educate their staffs about the variations in perceptions, cultural, financial and ethical values and expectations between India and the United States.

There were six specific strategies that underwent the most change in software testing between Indian outsourcers and their American clients (Jain, Poston, Simon, 2011). This included greater orientation towards the initial planning and perceptions of shared objectives, the development of shared schedules and contingency plans, shared costs and timelines, scope limitations, use of agile-based development methods, and the assumption of joint risk (Jain, Poston, Simon, 2011). Taken together these elements also served as the foundation for entirely new methodologies for managing complex client relationships over time.