A Multiple Case Study on Contradictions and Pre-conditions for Outsourcing Agile Software Development Projects

Title: A Multiple Case Study on Contradictions and Pre-conditions for Outsourcing Agile Software Development ProjectsAuthor: Maksim Buslovič & Samson DeribeSupervisor: Jonas SöderlundDate: May 30th, 2012Background: In today’s turbulent business environment organizational success depends on its ability to embrace change and adapt quickly. The ability to satisfy customer is core to profitability; thus being agile is a prominent factor, because customer expectations are never static. One of the project management methods which is quite popular in the software development are is Agile Method. Agile methods depart from the classical project approach as it emphasizes more on interaction among participant, short iteration and continuous feedback to embrace the continuously evolving customer requirements. However, implementing Agile methods in a distributed project work seems to be challenging, thus limiting projects to optimize form their distributed resource as well as external parties.Aim: The purpose of this thesis is to understand how Agile methods contradict with the Outsourcing practice, which ultimately lead to identifying the possibilities to successfully outsource project work based on Agile methods. In addition, the study aims in providing a good ground for future study in ‘Outsourcing within Agile Methods’ to fill the big theoretical gap identified in the area.Methodology: The thesis used a qualitative approach that intends to build theory through iteration by waving back and forth between data and literatures in an inductive manner. The research design was based on multiple case study that used five interviews and one direct observation as an instrument to collect primary data along with secondary data; all three together ensure proper triangulation resulting in higher research validity. Open coding system was used to analyze data; and findings were presented by tables, figures, models and direct quotations.Results: The study shows that values and principles of agile software development which gives much emphasis on proximity in order to have a daily stand-up meetings, visualizations, constant contact with customers and other team members, knowledge sharing and fun disappear when the project is involved in outsourcing partly the development process; because the need use more plans & documentation, clear contracts and less interaction implying a contradiction in both ‘Agile methods’ and ‘Outsourcing’ practices. However, the study identified preconditions that must be considered while involving in outsourcing part of Agile software development: Outsource only if the part to be outsourced is not related to core product; Put a complete team in a co-located manner; Minimize interdependence among distributed teams; and there should be enough time before delivering product to customers