Multinational/multicultural teams in offshore IT projects

Although outsourcing information technology (IT) projects to countries with an inexpensive workforce enables North American and European companies to reduce their project costs, such projects difficult to manage because teamwork tools such as co-locating are less effective when working with telecommuting and offshore project teams. This paper examines the multinational and multicultural issues that outsourcing companies and their offshore partners face when collaborating on IT projects. It discusses the recent background of outsourcing IT projects to offshore teams and analyzes a survey involving Pakistani software houses, one that reveals the best practices which can enable Western organizations to more effectively manage IT projects outsourced to partners operating in less developed countries like Pakistan. It also reviews the literature on outsourcing, defines four types of sourcing, lists the advantages of outsourcing IT projects, and describes the types of international outsourcing, outsourcing costs, an
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