The impact of modularisation on information system development outsourcing project control

Information systems development (ISD) outsourcing projects employ modularisation to decompose complex tasks into simpler portions. Modularisation enables better management and control. Adopting a ‘control theory’ perspective, this research explored the mechanisms for managing modularised ISD outsourcing projects effectively. Results are drawn using the case study method, employing eight modularised ISD outsourcing projects. Results demonstrate that modularisation increases the use of formal controls and decreases the informal clan controls. Further, it was found that an error in modualrisation creates fluctuations in Business Requirement Specifications