A Practical Management System for the Effective Use of Offshore Software Project Opportunities

A qualitative, grounded theory research was conducted to explore and deepen the understanding of how middle and low level managers can initialize and manage information technology (IT) outsourcing projects. The study involved 17 managers and leaders working in Ukraine in offshore software development companies. A grounded theory was utilized to analyze data from participants to identify the interrelationship among seven core categories including: (a) project communication, (b) employee training, (c) flexible organization, (d) strategic communication, (e) team unit, (f) transparent management, and (g) vendor adaptability. The study results indicate that applying a combination of concepts in the new theory as strategies allow managers to overcome barriers and achieve the realization of opportunities beyond traditional benefits in outsourcing. Such opportunities include achieving value-added results, vendor motivation, improved software quality, efficiency and timely delivery, organizational growth potential. The study highlighted the importance of referring a practical management system with characteristics of easily understandable and imaginable management approaches. The study also raised public awareness of the specific outsourcing landscape in Ukraine formed by that country's cultural, technological, and political situation. The findings contribute to the body of knowledge on a practical management system in outsourcing although its scope was constrained by limited resources