Wednesday 10 July 2013

FACTORS AFFECTING SOFTWARE DEVELOPMENT: Trust Factor


The first major challenge to offshore development is the factor of trust. Trust is an important aspect of interpersonal (Boon, Holmes, 1991) as well as inter-organisational relationship (Ring, Ven, 1994). But it is difficult to develop a relationship with unknown foreign partners that are timely and geographically distant  mainly because the companies do not have any relationship beyond the project itself.



Moreover trust can be difficult to establish as most projects are developed through structural mechanisms, which include deliverables, penalty clauses and reporting arrangements whereas in-house development relays more on trust rather than on details structured reporting (Lander, Purvis, McCray and Leigh, 2004).



While realising the difficulty in establishing trust in offshore project it is still needed in order to cooperated with foreign companies as distrust can hurt the performances whereas trust improves the performance. As distrust leads to finger pointing and each organisation starts focusing on how other organisations may have hurt the project.



Issues in trust have led some organisations to create their own software development centres in countries like India, China, Russia and Brazil.



References: 


Boon, S., and Holmes, J. The dynamics of interpersonal trust: Resolv- ing uncertainty in the face of risk. In Cooperation and Prosocial Behav- ior, R. Hinde, and J. Groebel, Eds. Cambridge University Press, Cambridge, U.K., 1991, pp. 190–211.

Lander, Maria Cristina, Russell L. Purvis, Gordon E. McCray, and William Leigh. "Trust-building mechanisms utilized in outsourced IS development projects: a case study." Information & Management 41, no. 4 (2004): 509-528.



Ring, P., and Van de Ven, A. Developmental processes of cooperative interorganizational relationships. Acad. Mgt. Rev. 19, 1 (Jan. 1994),90–118.


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