Risk bias externalization for offshore software outsourcing by conjoint analysis

Authors:
Zhongqi Sheng;Masayuki Nakano;Shingo Kubo;Hiroshi Tsuji
Affiliations:
Osaka Prefecture University, Graduate School of Engineering, Sakai, Japan and Northeastern University, School of Mechanical Engineering, Shenyang, Liaoning, China;Osaka Prefecture University, Graduate School of Engineering, Sakai, Japan;Osaka Prefecture University, Graduate School of Engineering, Sakai, Japan;Osaka Prefecture University, Graduate School of Engineering, Sakai, Japan
Venue:
JSAI'07 Proceedings of the 2007 conference on New frontiers in artificial intelligence
Year:
2007

Citing 4
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Abstract

With the steady increase of volumes of software development, most Japanese companies are interested in offshore software outsourcing. In order to find out the know-how of experienced project managers and assess the risk bias brought by vendor countries and software types, this paper utilizes conjoint analysis method on questionnaire for project preference to externalize the tacit knowledge. After analyzing the range, maximum, minimum and average value of total utilities of three kinds of properties, we have the following findings: 1) the project property is the main item affecting success of outsourcing projects, which could lead to big success or severe failure, 2) the risk analysis result for vendors of India is different from that of China, which should be deeply investigated, 3) the risk value of middleware software is lower than that of the other two software types, which should be paid more attention to.