Managing multi-vendors in software production through international outsourcing: A conceptual perspective

If successful, various important benefits can be achieved by using multi-vendors in software production through international outsourcing. However, the undertaking is complex and risky. There are numerous studies on IT outsourcing in general, but there is a significant lack of studies dealing with managing multi-vendors in producing software through international outsourcing. This study has been undertaken to fill in this void. It has focussed on the reasons for using international outsourcing and multi-vendors, success and risk factors, the vendor selection process, and the management of multi-vendors relationship. It develops an all-encompassing model that deals with the selection and management of multi-vendors in software production through international outsourcing. The results of this study show that there are various risks involved in international outsourcing by using multi-vendors. The use of multi-vendors in particular needs to be considered carefully. This study also identifies key success factors for managing multi-vendors in software production. The implications of the findings are discussed for both practice and research.