Factors that influence performance in Global Virtual Teams in outsourced software development projects

The outsourcing of software development projects has lead to the emergence of global virtual teams. However, the use of outsourcing strategies and consequently the establishment of global virtual teams by multinational corporations have had mixed reviews even though they often create access to a wider talent pool and sometimes at more affordable labor costs. This is the case because it is difficult to maintain a good performance level for those teams. This study utilized the framework from Kunze and Brahm as a guide and then expanded on it to explore factors that influence performance in global virtual teams: team cohesion, goal setting, task conflict, awareness climate, trust climate, leadership, and shared understanding. The study found that in addition to the aforementioned factors, collaboration, communication and cultural diversity also influenced performance in the global virtual teams. The findings are important because when a team's leadership has a better understanding of where they need to focus their energy in order to promote optimal performance, they can make informed decisions regarding plans and strategies to achieve that performance. The study thus offers important insight on the factors that could be nurtured and mitigated within an outsourced software development environment in order for global virtual teams to achieve and maintain a good performance level.