System Dynamics Modeling Applied to Software Outsourcing Decision Support

System Dynamics Modeling Applied to Software
Outsourcing Decision Support

James S. Collofello collofello@asu.edu
Stephen T. Roehling roehling@asu.edu
Arizona State University
Department of Computer Science and Engineering
Tempe, Arizona 85287
(480) 965-3733

The potential for cost reduction, faster development time, and the increased availability of software engineering talent are some motivations for software organizations to outsource one or more of their product development or process components. Can software organizations learn to more effectively establish and maintain outsourcing relationships, and therefore realize tangible cost, schedule, and human resource benefits?

Towards illustrating some of the dynamics, potential benefits, and potential drawbacks of software outsourcing, this paper describes a simulation model software practitioners can leverage for useful insight and decision support. Practical benefits and a rationale for applying the model to the software outsourcing problem are provided. The model's applicability and usefulness is demonstrated with snapshots of simulation results, which are analyzed and discussed.

Keywords: software outsourcing, process modeling