The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries

Otuonye Anthony Ifeanyi; Udunwa Ikenna Augustine

doi:doi:10.11648/j.se.20160401.11

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The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries

Otuonye Anthony Ifeanyi, Udunwa Ikenna Augustine

Published in Software Engineering (Volume 4, Issue 1)

Received: 6 April 2016 Published: 7 April 2016

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Abstract

This paper investigates the impact of Software Development Outsourcing on the growth of the IT sector in developing countries, especially Nigeria. It identifies major software outsourcing drivers and studies the relationship between them and the growth of the IT industry. The study became necessary owing to the obvious decline in IT implementation in most developing countries despite exponential growth of the sector in some developed countries of the world where outsourcing is practiced, and the attendant economic boast in those nations. From a review of existing literature focusing on selected small and medium scale enterprises and IT firms in Nigeria, five driving factors behind the adoption of software outsourcing were identified which include: cost saving/reduction, delivery time, technical skills, software quality and risk management. Randomly gathered data were analysed using multiple regression and the ANOVA test. The aim was to evaluate the collective effect of these driving factors on the level of outsourcing by the various IT firms in Nigeria and the consequent growth of the sector in the country. It was discovered that the five factors collectively contribute to software development outsourcing and the growth of the IT industry. However, it was discovered that three factors, technical skills, risk management and software quality were the most significant going by the result of the t-test. It was therefore concluded that software development outsourcing has impacted the growth of the IT sector and the level of its implementation can be further increased. Government and the organised labour should make concerted effort towards the development of IT firms by encouraging software outsourcing. This will enhance efficiency of indigenous IT firms and inspired them to obtain up-to-date skills that meet globally accepted standards. In the long run, it will translate to increase in revenue potential.

Published in	Software Engineering (Volume 4, Issue 1)
DOI	10.11648/j.se.20160401.11
Page(s)	1-8
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Software Outsourcing, Developing Countries, IT Industry, Software Quality, Delivery Time

References

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Otuonye Anthony Ifeanyi, Udunwa Ikenna Augustine. (2016). The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries. Software Engineering, 4(1), 1-8. https://doi.org/10.11648/j.se.20160401.11

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ACS Style

Otuonye Anthony Ifeanyi; Udunwa Ikenna Augustine. The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries. Softw. Eng. 2016, 4(1), 1-8. doi: 10.11648/j.se.20160401.11

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AMA Style

Otuonye Anthony Ifeanyi, Udunwa Ikenna Augustine. The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries. Softw Eng. 2016;4(1):1-8. doi: 10.11648/j.se.20160401.11

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@article{10.11648/j.se.20160401.11,
  author = {Otuonye Anthony Ifeanyi and Udunwa Ikenna Augustine},
  title = {The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries},
  journal = {Software Engineering},
  volume = {4},
  number = {1},
  pages = {1-8},
  doi = {10.11648/j.se.20160401.11},
  url = {https://doi.org/10.11648/j.se.20160401.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.se.20160401.11},
  abstract = {This paper investigates the impact of Software Development Outsourcing on the growth of the IT sector in developing countries, especially Nigeria. It identifies major software outsourcing drivers and studies the relationship between them and the growth of the IT industry. The study became necessary owing to the obvious decline in IT implementation in most developing countries despite exponential growth of the sector in some developed countries of the world where outsourcing is practiced, and the attendant economic boast in those nations. From a review of existing literature focusing on selected small and medium scale enterprises and IT firms in Nigeria, five driving factors behind the adoption of software outsourcing were identified which include: cost saving/reduction, delivery time, technical skills, software quality and risk management. Randomly gathered data were analysed using multiple regression and the ANOVA test. The aim was to evaluate the collective effect of these driving factors on the level of outsourcing by the various IT firms in Nigeria and the consequent growth of the sector in the country. It was discovered that the five factors collectively contribute to software development outsourcing and the growth of the IT industry. However, it was discovered that three factors, technical skills, risk management and software quality were the most significant going by the result of the t-test. It was therefore concluded that software development outsourcing has impacted the growth of the IT sector and the level of its implementation can be further increased. Government and the organised labour should make concerted effort towards the development of IT firms by encouraging software outsourcing. This will enhance efficiency of indigenous IT firms and inspired them to obtain up-to-date skills that meet globally accepted standards. In the long run, it will translate to increase in revenue potential.},
 year = {2016}
}

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TY  - JOUR
T1  - The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries
AU  - Otuonye Anthony Ifeanyi
AU  - Udunwa Ikenna Augustine
Y1  - 2016/04/07
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T2  - Software Engineering
JF  - Software Engineering
JO  - Software Engineering
SP  - 1
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PB  - Science Publishing Group
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AB  - This paper investigates the impact of Software Development Outsourcing on the growth of the IT sector in developing countries, especially Nigeria. It identifies major software outsourcing drivers and studies the relationship between them and the growth of the IT industry. The study became necessary owing to the obvious decline in IT implementation in most developing countries despite exponential growth of the sector in some developed countries of the world where outsourcing is practiced, and the attendant economic boast in those nations. From a review of existing literature focusing on selected small and medium scale enterprises and IT firms in Nigeria, five driving factors behind the adoption of software outsourcing were identified which include: cost saving/reduction, delivery time, technical skills, software quality and risk management. Randomly gathered data were analysed using multiple regression and the ANOVA test. The aim was to evaluate the collective effect of these driving factors on the level of outsourcing by the various IT firms in Nigeria and the consequent growth of the sector in the country. It was discovered that the five factors collectively contribute to software development outsourcing and the growth of the IT industry. However, it was discovered that three factors, technical skills, risk management and software quality were the most significant going by the result of the t-test. It was therefore concluded that software development outsourcing has impacted the growth of the IT sector and the level of its implementation can be further increased. Government and the organised labour should make concerted effort towards the development of IT firms by encouraging software outsourcing. This will enhance efficiency of indigenous IT firms and inspired them to obtain up-to-date skills that meet globally accepted standards. In the long run, it will translate to increase in revenue potential.
VL  - 4
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Author Information

Otuonye Anthony Ifeanyi

Department of Information Management Technology, Federal University of Technology, Owerri, Nigeria
Udunwa Ikenna Augustine

Department of Information Management Technology, Federal University of Technology, Owerri, Nigeria

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APA Style

Otuonye Anthony Ifeanyi, Udunwa Ikenna Augustine. (2016). The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries. Software Engineering, 4(1), 1-8. https://doi.org/10.11648/j.se.20160401.11

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ACS Style

Otuonye Anthony Ifeanyi; Udunwa Ikenna Augustine. The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries. Softw. Eng. 2016, 4(1), 1-8. doi: 10.11648/j.se.20160401.11

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AMA Style

Otuonye Anthony Ifeanyi, Udunwa Ikenna Augustine. The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries. Softw Eng. 2016;4(1):1-8. doi: 10.11648/j.se.20160401.11

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@article{10.11648/j.se.20160401.11,
  author = {Otuonye Anthony Ifeanyi and Udunwa Ikenna Augustine},
  title = {The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries},
  journal = {Software Engineering},
  volume = {4},
  number = {1},
  pages = {1-8},
  doi = {10.11648/j.se.20160401.11},
  url = {https://doi.org/10.11648/j.se.20160401.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.se.20160401.11},
  abstract = {This paper investigates the impact of Software Development Outsourcing on the growth of the IT sector in developing countries, especially Nigeria. It identifies major software outsourcing drivers and studies the relationship between them and the growth of the IT industry. The study became necessary owing to the obvious decline in IT implementation in most developing countries despite exponential growth of the sector in some developed countries of the world where outsourcing is practiced, and the attendant economic boast in those nations. From a review of existing literature focusing on selected small and medium scale enterprises and IT firms in Nigeria, five driving factors behind the adoption of software outsourcing were identified which include: cost saving/reduction, delivery time, technical skills, software quality and risk management. Randomly gathered data were analysed using multiple regression and the ANOVA test. The aim was to evaluate the collective effect of these driving factors on the level of outsourcing by the various IT firms in Nigeria and the consequent growth of the sector in the country. It was discovered that the five factors collectively contribute to software development outsourcing and the growth of the IT industry. However, it was discovered that three factors, technical skills, risk management and software quality were the most significant going by the result of the t-test. It was therefore concluded that software development outsourcing has impacted the growth of the IT sector and the level of its implementation can be further increased. Government and the organised labour should make concerted effort towards the development of IT firms by encouraging software outsourcing. This will enhance efficiency of indigenous IT firms and inspired them to obtain up-to-date skills that meet globally accepted standards. In the long run, it will translate to increase in revenue potential.},
 year = {2016}
}

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TY  - JOUR
T1  - The Impact of Software Development Outsourcing on the Growth of the IT Sector in Developing Countries
AU  - Otuonye Anthony Ifeanyi
AU  - Udunwa Ikenna Augustine
Y1  - 2016/04/07
PY  - 2016
N1  - https://doi.org/10.11648/j.se.20160401.11
DO  - 10.11648/j.se.20160401.11
T2  - Software Engineering
JF  - Software Engineering
JO  - Software Engineering
SP  - 1
EP  - 8
PB  - Science Publishing Group
SN  - 2376-8037
UR  - https://doi.org/10.11648/j.se.20160401.11
AB  - This paper investigates the impact of Software Development Outsourcing on the growth of the IT sector in developing countries, especially Nigeria. It identifies major software outsourcing drivers and studies the relationship between them and the growth of the IT industry. The study became necessary owing to the obvious decline in IT implementation in most developing countries despite exponential growth of the sector in some developed countries of the world where outsourcing is practiced, and the attendant economic boast in those nations. From a review of existing literature focusing on selected small and medium scale enterprises and IT firms in Nigeria, five driving factors behind the adoption of software outsourcing were identified which include: cost saving/reduction, delivery time, technical skills, software quality and risk management. Randomly gathered data were analysed using multiple regression and the ANOVA test. The aim was to evaluate the collective effect of these driving factors on the level of outsourcing by the various IT firms in Nigeria and the consequent growth of the sector in the country. It was discovered that the five factors collectively contribute to software development outsourcing and the growth of the IT industry. However, it was discovered that three factors, technical skills, risk management and software quality were the most significant going by the result of the t-test. It was therefore concluded that software development outsourcing has impacted the growth of the IT sector and the level of its implementation can be further increased. Government and the organised labour should make concerted effort towards the development of IT firms by encouraging software outsourcing. This will enhance efficiency of indigenous IT firms and inspired them to obtain up-to-date skills that meet globally accepted standards. In the long run, it will translate to increase in revenue potential.
VL  - 4
IS  - 1
ER  -

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