This literature review indicates how to find the critical success factors for better offshore software outsourcing

This literature review indicates how to find the critical success factors for better offshore software outsourcing. Outsourcing can benefit companies in many ways, such as improve efficiency by bringing in professionals in certain field, save infrastructure, and leverage competency among competitors. It is important for company to have effective contract management, which can help company reduce associated risks. Poor contract management may make things go wrong and end up with failure. Good contract management can provide better operation control, provide good strategies regarding the contract change and can more effectively monitor performance. Good relationships between vendors and clients depend on contract management. Training program should be provided to each employee about how to build effective and accurate communication, within company and with outsourcing company to avoid uncertainty or misunderstanding. Another way to improve contract management is to document the issues and changes that have happened. Companies can better track and monitor with the documents so that they know how to solve the problems when needed. Anthi (2014) argues that asset specificity is also a critical factor of the outsourcing research. Companies should consult with lawyers before, during and after the contract management. Lawyers can provide suggestion from legal perspective, which can avoid the unnecessary disputes and conflicts in the future. Important agreement and items should be put on the contract, each party will have better understanding of their responsibility. Good contract management can reduce or avoid associated risks. Companies should understand their business and goal before building the framework of outsourcing contract. This literature review used SLR as research method to conduct analysis because it can provide a more accurate analysis and estimate. Ahmad Zomorrodi (2014) thinks that transaction costs and trust are also critical success factors for outsourcing, especially for automotive industry.