Natural systematic approaches to offshore software development opportunities beyound traditional benefits: A grounded theory study

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. A combination of the categories formed the foundation of a new theory on the role of natural systematic approaches with social networking technologies in effective software outsourcing to Ukraine. 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 of outsourced development and timely delivery, as well as organizational growth potential. The study highlighted the importance of referring a practical management system with characteristics of easily understandable and imaginable management approaches. In addition to defining the management system, the study 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.