ABSTRACT
This chapter investigates why outsourcing is promoted, potential risks and challenges of outsourcing and offshoring, and recommendations for addressing the risks. Outsourcing is the act of sourcing work to an outside organization; that is, to an external entity. There are many aspects to consider when outsourcing; however, it is not feasible to examine them all here. Outsourcing endeavors vary significantly—all the way from a few tasks outsourced to a domestic supplier, to the entire system outsourced to an offshore entity in a country without bilateral agreements, with a lot of variants between these two extremes. Communication with some offshoring suppliers can be a challenge. Experience shows that software activities performed offshore require careful consideration. The supplier is the organization selected to do some or all of the work for a safety-critical software project. Many programmatic aspects are discussed because they impact the software life cycle and the end product.
