Beyond the Black Box: Knowledge Overlaps in Software Outsourcing

  • Authors:

  • Amrit Tiwana

  • Affiliations:

  • Emory University

  • Venue:
  • IEEE Software
  • Year:
  • 2004

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Abstract

The well-known black-box model of software development outsourcing is typically effective. The approach assumes that the vendor can successfully solve a client organization's business problem without either organization having to deeply understand the otherýs domain. This article reports on a field study of 209 global projects that explored the black-box approachýs limits as well as potential solutions to those limits. The studyýs key finding is that the black-box approach usually works well in routine projects but fails in projects involving novelty. Novel projects require careful deviations from the black-box model depending on novelty type. Conceptually novel projects require the vendor to deeply understand the clientýs business whereas projects involving novel development processes require deeper technical expertise on the clientýs part. The article also presents insights into the effectiveness of capability maturity, intense architecture design effort, and development coordination tools. A knowledge congruence framework is offered to apply the findings to software development practice.