Adopting Agile Project Management Methods in Software Projects Involving Outsourcing

With the evolvement of how software was built, how quickly the initial requirements change, how fast new technologies were appearing in tech world and evolving innovation needs of dynamic businesses, the software industry was feeling the need for a better way of managing projects. In 2002 a group of well-known software professionals got together to develop a set of industry guidelines now known as ‘The Agile Manifesto’ to help standardize this new way of managing projects which helped lay foundations to now widely used ‘The Agile Project Management methodology’.   While Agile was gaining momentum, the software development world saw the rise of another way of developing software which is known as outsourcing. Outsourcing in commonly referred form involves two or more geographically dispersed teams collaborating to develop the same software. However the fusion of agile methodology with outsourcing opens up new challenges which includes cultural, geographical and time barriers. This study tries to understand how well agile works with outsourced projects using a quantitative approach. The study will also look at how factors physical distance, time and culture impact success of agile in outsourced projects using a quantitative approach. Identifying factor/factors which has the biggest impact on success of agile in outsourced project will also help identify and prioritize which principles and practices need to be fixed first.   Data collected through a questionnaire was quantitatively analysed using correlation, simple and multiple regression analysis. Data was sourced from industry professionals and practitioners who had enough experience with outsourced agile projects to be able to provide insights through a questionnaire. Correlation tests, simple regression and multiple regression analysis tests between time difference, culture difference, physical distance and success of agile methodology in outsourced projects were then carried out in a bid to understand the relationship of three independent variables and the dependent variable.  The study contribute towards quantitatively understanding how well agile methodology works in outsourced projects. Identifying dominant factor/factors that hinder success of agile methodology in outsourced projects also help users of agile project management to prioritize the principles that should be fixed first to better fit agile methodology in outsourced projects. Using agile methods that are based on modified principles are expected to contribute to overall success of the outsourced projects. Last but not least this study identifies further research avenues towards improved work in the related area.