Offshore-outsourced software development is gainingpopularity because companies are continuously forced toreduce production costs while keeping sustainablecompetitive strength. However, this trend of softwaredevelopment increases projects’ complexity and brings uprisks to the overall project environment. Therefore, risksof offshore software development require to be managedas early as possible for a successful project. This paperconsiders a risk management model from a holisticperspective to manage offshore software developmentrisk, integrated into early stages of development. Theapproach effectively identifies and specifies the goals of aproject and the related risk factors. This is done at thebasis of selected software development components withinthe running project. We show how to trace and controlthese risks already during early requirements engineeringactivities. The model at hand is implemented into an ongoingoffshore software development project to (1)identify goals and risk factors from the local context andfinally (2) to determine its applicability of the approach inoffshore software development projects from a vendor’sperspective.
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