Modelling Determinants of Software Development Outsourcing for Nigeria

58 International Journal for Modern Trends in Science and Technology
Volume: 2 | Issue: 09 | September 2016 | ISSN: 2455-3778IJMTST
Modelling Determinants of Software
Development Outsourcing for Nigeria
Asiegbu Baldwin C1
| Oluigbo Ikenna V 2
| Nzotta Samuel M3
1,2Department of Information Management Technology, Federal University of Technology , Owerri, Imo
State, Nigeria.
3Department of Financial Management Technology, Federal University of Technology , Owerri, Imo
State, Nigeria.
Software Development Outsourcing is one of the common practices in global business operations today; a
practice that has to a large extent changed the landscape of IT services in Nigeria. This research predicts a
fitted model using a number of success factors, for software development outsourcing in Nigeria. The
researchers adopted six success factors (Cost Saving and Financial Stability, Effective Communication and
Trust, Technical Expertise and Knowledge Transfer, Understanding Software Development Outsourcing
Industry, Effective Software Privacy and Security, and Overcome Cultural Barrier) for use from a prior study
carried out using factor analysis; and these six success factors were analysed using multiple regression to
determine those that are critical for software development outsourcing. The result of the analysis indicates
that both individually and collectively, the six success factors are all critical to software development
outsourcing in Nigeria. A model was thus derived to predict successful software development outsourcing;
𝜸 = −𝟏. 𝟏𝟎𝟗 + 𝟎. 𝟐𝟏𝟏𝑿₁ + 𝟎. 𝟐𝟑𝟒𝑿₂ + 𝟎. 𝟐𝟐𝟓𝑿₃ + 𝟎. 𝟐𝟓𝟐𝑿₄ + 𝟎. 𝟏𝟗𝟔𝑿₅ + 0.188𝑿₆, with 𝜸denoting the predicted
outcome (successful software development outsourcing), and 𝑋₁ to 𝑋₆ denotes the six independent predictor
variables. IT Businesses and organizations in Nigeria should therefore pay maximum attention to these
critical success factors in other to achieve a significant stride in outsourcing the development of their
software. In addition, the result of this research can be applied in further studies as well as in literatures.
KEYWORDS: Cost Saving;Critical Success Factors;Outsourcing;Software Development;Technical Expertise
Copyright © 2016 International Journal for Modern Trends in Science and Technology
All rights reserved.
I. INTRODUCTION
Outsourcing, the contracting out of activities to other businesses, is not a new phenomenon. We have
already seen outsourcing in, for example, the health or banking industry. Many people think of software
outsourcing in Information Technology as a recent development. This is however not true [1].[2], in her
article, describes Outsourcing as an arrangement in which one company provides services for another
company that could also be or usually have been provided in-house. Furthermore she posited that
outsourcing is a trend that is becoming more common in Information Technology (IT) and other industries
for services that have usually been regarded as intrinsic to managing a business. Simply put, Outsourcing
is the contracting out of a business process to an independent organization, which an organization may
have previously performed internally or has a new need for, from which the process is purchased back as a
service.
Some common reasons for outsourcing in the 21st century include:
1. Improving company focus, as the outside experts take on necessary but non-core responsibilities
2. Gaining access to world-class capabilities, systems and services, without the need to build them from
bottom up
3. Freeing internal resources - cash and personnel - for other purposes; ensuring staffing flexibility,
whereby staffing levels are “in sync” with immediate needs
ABSTRACT

Modelling Determinants of Software Development Outsourcing for Nigeria
4. Requiring specific expertise for functions that are either time-consuming or are currently out of control
5. Reducing overall damage to an organisation caused by risks, as associated risks and operating costs
are shared with a partner
6. Ensuring overall satisfaction to customer
From a study conducted by [3], Figure 1 shows that outsourcing Information Technology components
takes a bulk of the outsourcing market. Software development is a component of Information Technology.
This fact is supported by the work of [4] and [5].
Figure 1: Facts on Outsourcing [3]
Software development outsourcing involves sub-contracting or “farming out” certain software
development phases and/or functions to independent, third-party companies or individuals, instead of
keeping those functions in-house [6]. According to [7], Software outsourcing is a phrase used to describe
the practice of seeking resources - or subcontracting - part or all of software development functions. An
organization would use outsourcing for functions ranging from infrastructure to software development,
maintenance and support. The study of [8] defined it as contracting out the development, planning,
management, training, maintenance or operation of software services, skills, products or applications.
Previous research shows that software development outsourcing gained a dramatic increase after 2001 and
is still growing continuously due to economic downturn [9]. Outsourcing Software Development offers
many benefits like access to leading-edge technology, skilled human resource, cheaper and high quality
software development.
According to [10] and [3], outsourcing of software development has a number of specific risks that can
influence the decision of entering into an Outsourcing Software Development(OSD) contract:
1. Uncertainty about information confidentiality. This is a problem of a growing concern. Even though
providing a total security for software is a difficult task, outsourcing firms need to assure clients of the
secure handling of essential information and the client’s core processes.
2. Lack of proximity to staff. In a case of an in-house development, the developers’ team has constant
and quick access to all the employees involved in the use of the software. In a case of Outsourced
Software Development, it is necessary to prepare detailed technical requirements and constantly adjust
them to any change.
3. Uncertain financial payback. While the provider can have some guarantees of his cash flow set by
contract conditions, the client is uncertain about the payback on the product in cases of “software
crash”. The delivered software can meet all the technical requirements; it might also turn out to be
obsolete, or do not support some important technologies and standards that appeared during the
development period.
4. Increased complexity of management. Outsourcing is considered to be a solution to decrease
complexity of management of the IT functions. But often management of Outsourcing Software
Development project suffers from a lack of control, namely the futility of implementing tightly controlled
operations in such projects
5. The lack of control over the outsourced resources. A situation when an outsourcing firm
developssoftware that will be used over an enterprise-wide IT infrastructure of a client, but the software
cannot be replaced or upgraded at the client’s will. This creates specific technical challenges that can
reduce outcome of an OSD contract.

The aim of this paper is to identify and analyse the contribution of critical success factors to Successful
Software Development Outsourcing in Nigeria. The specific objectives include:
1. Identify the critical success factors for successful software development outsourcing in Nigeria
2. Evaluate the contribution of each of the critical success factor to successful software development
outsourcing in Nigerian Environment.
3. Evaluate the contribution of the overall critical success factors to the successful software development
outsourcing in Nigerian Environment.
4. To rank these critical factors according to the weight of their criticality on successful software
development outsourcing in Nigeria.
II. METHOD OF DATA ANALYSIS
Multiple Regression and Correlation Analysis were adopted for this research. The multiple regression
analysis measures the relationship existing between three or more variables. It also helps to examine the
nature of the relationship between a given dependent variable and two or more independent variables in a
regression function. We shall ascertain the tenability of the null hypothesis formulated for this research at
0.05 level of probability. Correlation analysis will be used to determine the degree of relationship between
the dependent and independent variables.
For the purpose of this research:
γ = Successful SoftwareDevelopment Outsourcing
X₁ = Cost Saving and Financial Stability
X₂ = EffectiveCommunication and Trust
X₃ = TechnicalExpertise and Knowledge Transfer
X₄ = Understanding Software Development Outsourcing Industry
X₅ = EffectiveSoftwarePrivacy and Security
X₆ = Overcome Cultural Barrier
Whileγ is the Dependent Variable, X1 to X6 are the Independent Variables (the success factors).
The six success factors were derived from a similar work that was carried out using factor analysis
technique [11].
The aim is to statistically and quantitatively establish how critical each success factor is for successful
software development outsourcing in Nigeria.
Satisfying Multiple Regression Assumptions
Multicollinearity refers to the relationships among the independent variables. When our independent
predictor variables are highly correlated with one another, then we have a case of multicollinearity.
Multicollinearity makes the model cumbersome and less accurate since we are using more than one
variable that measures the same thing. Thus, the purpose of this test is to ensure that we have maintained
a high correlation between our independent variables and dependent variables; while ensuring that there is
little or no correlation between our independent variables.
Table 1: Correlations
Y X1 X2 X3 X4 X5 X6
Pearson Correlation Y 1.000 .426 .418 .403 .416 .312 .277
X1 .426 1.000 .196 .090 .004 -.015 .102
X2 .418 .196 1.000 .028 -.109 .098 .140
X3 .403 .090 .028 1.000 .062 -.043 -.011
X4 .416 .004 -.109 .062 1.000 .032 .032
X5 .312 -.015 .098 -.043 .032 1.000 -.058
X6 .277 .102 .140 -.011 .032 -.058 1.000

From Table 1, there is a high correlation between our independent variables and the dependent variable.
This indicates that our independent variables are a good predictor for our dependent variable. Furthermore,
we see that there is no correlation between our independent variables; as the correlation between the
independent variables is below 0.3.
From Table 2, the tolerance values for each independent variable are well above the 0.5 threshold; while
the Variance Inflation Factor (VIF) values are all below 10. This is a strong indicator that there are no
multicollinearity concerns between the independent variables.
Table 2: Coefficientsa
Model
Unstandardized
Coefficients
Standardize
d
Coefficients
T Sig.B
Std.
Error Beta Tolerance VIF
1 (Constan
t)
-1.109 1.204 -.922 .358
X1 .211 .026 .310 8.174 .000 .948 1.055
X2 .234 .027 .334 8.673 .000 .921 1.086
X3 .225 .024 .355 9.540 .000 .985 1.015
X4 .252 .023 .413 11.049 .000 .979 1.022
X5 .196 .025 .298 7.972 .000 .980 1.021
X6 .188 .034 .206 5.492 .000 .967 1.034
a. Dependent Variable: Y
In Figure 2, our plots lie close to the straight line. Though the p-p plots deviates a little, but only a very little
deviation can be seen. This means that we have a good fit on the Normal P-P plot, thus the variables passes
the Normality test.
In Figure 3, we see a roughly rectangular distribution with most of the dots cutting across through the
centre. What we don’t want to see is a clear or systematic pattern to the dots where they are higher on one
side than the other. This also means we have met the linearity assumption. Outliers are defined as cases
that have a standardized residual as displayed in the scatter plot of more than 2.0 or less than -2.0. Again
from figure 4.10, we see no standardized residual approaching -2 or +2; meaning no residual resides
outside the +2.0 and -2.0 plots. This means also that our variable passes the outliers assumptions.
Figure 2: *Zresid Normal P-P Plot

Figure 3: *Zresid by *Zpred Scatter Plot
III. MODEL ESTIMATION AND HYPOTHESIS TESTING
Relationship Model Estimation and Interpretation
Table 3 shows the correlation coefficients between the Independent constructs; which gives a very low
correlation between the independent variables, and this does not affect our multiple regression model (No
multicollinearity). Also, there is a very strong correlation between the predictor variables and the outcome;
making the independent variables a good predictor for successful software development outsourcing in
Nigeria.
Table 3: The link between the predictor variables using Pearson Correlation Coefficient
Y X1 X2 X3 X4 X5 X6
Pearson Correlation
Y 1.000 .426 .418 .403 .416 .312 .277
X1 .426 1.000 .196 .090 .004 -.015 .102
X2 .418 .196 1.000 .028 -.109 .098 .140
X3 .403 .090 .028 1.000 .062 -.043 -.011
X4 .416 .004 -.109 .062 1.000 .032 .032
X5 .312 -.015 .098 -.043 .032 1.000 -.058
X6 .277 .102 .140 -.011 .032 -.058 1.000
Based on Table 4 – output of the data subjected to multiple regression analysis, the relationship model is
estimated as follows:
𝜸 = −𝟏. 𝟏𝟎𝟗 + 𝟎. 𝟐𝟏𝟏𝑿₁ + 𝟎. 𝟐𝟑𝟒𝑿₂ + 𝟎. 𝟐𝟐𝟓𝑿₃ + 𝟎. 𝟐𝟓𝟐𝑿₄ + 𝟎. 𝟏𝟗𝟔𝑿₅ + 0.188𝑿₆ (1)
The equation (1) can thus be readily used to predict Critical Success Factors for Software Development
Outsourcing in Nigeria.

Table 4: Coefficientsa of the Individual Independent Variables
Model
Unstandardized
Coefficients
Standardiz
ed
Coefficients
t Sig.
95% Confidence
Interval for B Correlations
Collinearity
Statistics
B
Std.
Error Beta
Lower
Bound
Upper
Bound
Zero-or
der Partial Part
Toleran
ce VIF
1 (Const
ant)
-1.109 1.204 -.922 .358 -3.483 1.265
X1 .211 .026 .310 8.174 .000 .160 .262 .426 .507 .302 .948 1.055
X2 .234 .027 .334 8.673 .000 .181 .287 .418 .530 .321 .921 1.086
X3 .225 .024 .355 9.540 .000 .178 .271 .403 .566 .353 .985 1.015
X4 .252 .023 .413 11.049 .000 .207 .297 .416 .622 .408 .979 1.022
X5 .196 .025 .298 7.972 .000 .148 .245 .312 .498 .295 .980 1.021
X6 .188 .034 .206 5.492 .000 .121 .256 .277 .368 .203 .967 1.034
a. Dependent Variable:
Successful Software
Development Outsourcing
From Table 5 – output of the data subjected to multiple regression analysis, the value of coefficient
correlation (R =0.858), shows that independent variables combined have a strong relationship with the
dependent variable of 85.8%. The R Squared value of 0.736, shows that 73.6% of the variance in Successful
Software Development Outsourcingis explained by the model (the predictors). Explicitly, this means in the
estimated relationship model, the predictors - Cost Savingand Financial Stability, Effective Communication
and Trust, Technical Expertise and Knowledge Transfer, Understanding Software Development Outsourcing
Industry, Effective Software Privacy and Security, and Overcome Cultural Barrier explained about 73.6% of
the variance in Successful Software Development Outsourcing. This is a very high percentage. It shows that
much of the independent variables (Cost Saving and Financial Stability, Effective Communication and Trust,
Technical Expertise and Knowledge Transfer, Understanding Software Development Outsourcing Industry,
Effective Software Privacy and Security, and Overcome Cultural Barrier) explain the dependent variable
(Successful Software Development Outsourcing); and only 26.4% is probably explained by other factors. This
indicates that our model is a good fit in determining the dependent variable.
Sometimes, the R squared coefficient could be a bit overestimated. It is therefore best to report the
adjusted R Squared value. The adjusted R Squared statistics corrects this over-estimation in the R Squared
value to provide a better estimate of how much the independent variables predict and explain the dependent
variable. In this case, it is 72.8%. The result helps to validate the correlation result of Table 4 whichshows a
positive and strong correlation between the independent variables and the dependent variable.
Table 5: Model Summaryb for Successful Software Development
Outsourcing
Model R R Square Adjusted R Square Std. Error of the Estimate
1 .858a
.736 .728 .96478
a. Predictors: (Constant), Overcome Cultural Barrier, Effective Communication and Trust,
Understanding Software Development Outsourcing Industry, Cost Saving and Financial
Stability, Technical Expertise and Knowledge Transfer, Effective Software Privacy and
Security
b. Dependent Variable: Successful Software Development Outsourcing
Hypothesis Testing
In testing our hypotheses, Table 6 – an output of our multiple regression analysis is referred to at 0.05 level
of significance.
Table 6: Summary of Multiple Regression Analysis of the collective independent variables on
Successful Software Development Outsourcing in Nigeria
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression .176 6 .029 3.625 .000b
Residual .040 5 .008
Total .216 11

a. Dependent Variable: Successful Software Development Outsourcing
b. Predictors: (Constant), Overcome Cultural Barrier, Effective Communication and Trust,
Understanding Software Development Outsourcing Industry, Cost Saving and Financial Stability,
Technical Expertise and Knowledge Transfer, Effective Software Privacy and Security
Research Hypothesis One:
H01 The Collective Success Factors are not critical to Software Development Outsourcing in the Nigerian
Environment
The null hypothesis one was tested using F-test based on Table 6 – the Analysis of Variance (ANOVA) table.
The model reached statistical significance at (sig = .000) which is less than the significance level of 5%
(P<0.05). Therefore, we rejected the null hypothesis (H01) and accepted the alternative hypothesis (HA1)and
concluded that the Collective Success Factors are critical to Software Development Outsourcing in the
Nigerian Environment.
Research Hypothesis Two:
H02 The Individual Success Factorsare not critical to Software Development Outsourcing in the Nigerian
Environment
The null hypothesis two was tested using test statistics based on Table 4. This test was carried out for each
of the factors.
From Table 4, at a significant level of 0.000 for Cost Saving and Financial Stability (H02a), we rejected the
null hypothesis (H02a)because probability level is less that 0.05 (t=8.174; p<0.05) and concluded that Cost
Saving and Financial Stability is critical to a Successful Software Development Outsourcing in Nigeria. The
contribution of Cost Saving and Financial Stability to Successful Software Development Outsourcing in
Nigeria is 0.211 (21.1%); hence Cost Saving and Financial Stability as a factor is critical to a Successful
Software Development Outsourcing in Nigeria.
From Table 4, at a significant level of 0.000 for Effective Communication and Trust (H02b), we rejected the
null hypothesis (H02b)because probability level is less that 0.05 (t=8.673; p<0.05) and concluded that
Effective Communication and Trust as a factor is critical to a Successful Software Development
Outsourcing in Nigeria. The contribution of Effective Communication and Trust to Successful Software
Development Outsourcing in Nigeria is 0.234 (23.4%); hence Effective Communication and Trustas a factor
is critical to a Successful Software Development Outsourcing in Nigeria.
From Table 4, at a significant level of 0.000 for Technical Expertise and Knowledge Transfer (H02c), we
rejected the null hypothesis (H02c)because probability level is less that 0.05 (t=9.540; p<0.05) and conclude
that Technical Expertise and Knowledge Transfer as a factor is critical to a Successful Software
Development Outsourcing in Nigeria. The contribution of Technical Expertise and Knowledge Transfer to
Successful Software Development Outsourcing in Nigeria is 0.225 (22.5%); hence Technical Expertise and
Knowledge Transferas a factor is critical to a Successful Software Development Outsourcing in Nigeria.
From Table 4, at a significant level of 0.000 for Understanding Software Development Outsourcing
Industry (H02d), we rejected the null hypothesis (H02d)because probability level is less that 0.05 (t=11.049;
p<0.05) and concluded that Understanding Software Development Outsourcing Industry as a factor is
critical to a Successful Software Development Outsourcing in Nigeria. The contribution of Understanding
Software Development Outsourcing Industry to Successful Software Development Outsourcing in Nigeria is
0.252 (25.2%); hence Understanding Software Development Outsourcing Industry as a factor is critical to a
Successful Software Development Outsourcing in Nigeria.
From Table 4, at a significant level of 0.000 for Effective Software Privacy and Security (H02e), we rejected
the null hypothesis (H02e)because probability level is less that 0.05 (t=7.972; p<0.05) and concluded that
Effective Software Privacy and Security as a factor is critical to a Successful Software Development
Outsourcing in Nigeria. The contribution of Effective Software Privacy and Security to Successful Software
Development Outsourcing in Nigeria is 0.196 (19.6%); hence Effective Software Privacy and Securityas a
factor is critical to a Successful Software Development Outsourcing in Nigeria.
From Table 4, at a significant level of 0.000 for Overcome Cultural Barrier (H02f), we rejected the null
hypothesis (H02f)because probability level is less that 0.05 (t=5.492; p<0.05) and concluded that Overcome

Cultural Barrier is critical to a Successful Software Development Outsourcing in Nigeria. The contribution
of Overcome Cultural Barrier to Successful Software Development Outsourcing in Nigeria is 0.188 (18.8%);
hence Overcome Cultural Barrieras a factor is critical to a Successful Software Development Outsourcing in
Nigeria.
Having considered the significant level of all the success factors, the researchers concluded that each of
the success factor is critical to software development outsourcing in Nigeria.
Research Hypothesis 3:
H03: There is no significant difference between the critical factors for successful software development
outsourcing in Nigeria
Pearson Correlation Coefficient on Table 7 shows that there is no multicollinearity between the
individual predictor critical factors for Successful Software Development Outsourcing in Nigeria. This is
evident in the fact that no factor score between the independent variables were over 0.3; infact, no score
came anywhere close to 0.3. Hence we reject the null hypothesis and accept the alternative hypothesis
which states that there is significant difference between the critical factors for successful software
development outsourcing in Nigeria.
Table 7: Pearson Correlation of Predictor Factors for Successful Software
Development Outsourcing
Y X1 X2 X3 X4 X5 X6
Pearson Correlation Y 1.000 .426 .418 .403 .416 .312 .277
X1 .426 1.000 .196 .090 .004 -.015 .102
X2 .418 .196 1.000 .028 -.109 .098 .140
X3 .403 .090 .028 1.000 .062 -.043 -.011
X4 .416 .004 -.109 .062 1.000 .032 .032
X5 .312 -.015 .098 -.043 .032 1.000 -.058
X6 .277 .102 .140 -.011 .032 -.058 1.000
IV. RESULT DISCUSSION
Results are discussed here in the context of the research questions
1. What are the relevant Critical Success Factors that contributes to the success of Software
development outsourcing in Nigeria?
The six relevant Critical Success Factors are Cost Saving and Financial Stability, Effective Communication
and Trust, Technical expertise and Knowledge Transfer, Understanding Software Development Outsourcing
Industry, Effective Software Privacy and Security, and Overcome Cultural Barrier. Based on the result of
the research in test hypotheses, we concluded that collectively and individually, that the six success factors
are critical to successful software development outsourcing in Nigeria.
2. To what extent have these factors collectively contribute to the success of Software development
outsourcing in Nigeria?
From F-test of the null hypothesis one, it was concluded factors collectively contribute significantly to the
success of Software development outsourcing in Nigeria. It shows that Cost Saving and Financial Stability,
Effective Communication and Trust, Technical expertise and Knowledge Transfer, Understanding Software
Development Outsourcing Industry, Effective Software Privacy and Security, and Overcome Cultural
Barrier) contribute significantly to the Successful Software Development Outsourcing.This result is in line
with the works of [12], [13] and [14]. [14]in his work indicated Overcome Cultural barrier and Technical
Expertise as factors for software outsourcing. [12], after reviewing 91 factors from 35 literatures, performed
a content analysis and reduced the number of factors from 91 to 11. In their work, they identified Cost,
trust and software security as critical to software development outsourcing.
3. To what extent have these factors individually contribute to the success of Software development
outsourcing in Nigeria?

The t-test of the hypothesis two for each of the factors also showed that each success factor contributed
critically to Successful Software Development Outsourcing in Nigeria.This research finding is in sync with
the findings of an empirical study done by [15] and [16]. In their works, they identified Financial Stability,
Communication and Trust, Technical Expertise and Overcoming language as very critical with a high
ranking. The work of [17]particularly identified Trust as then most critical factor for software outsourcing.
In addition, [18] posits Cost saving as the most critical to software outsourcing.
4. What are the challenges facing the growth of Software development outsourcing in Nigeria?
As identified from reviewed literatures and journals, the challenges facing the growth of software
development outsourcing in Nigeria are:
1. Socio-Cultural Distance
2. Multicultural and Ethnic Differences
3. Lack of Quality and Efficiency
4. Intellectual Property Rights Issues
5. Knowledge Transfer Issues
6. Lack of Trust
7. Communication, Coordination and Control Issues
8. Political Instability
From the analysis, the major challenge facing the growth of software development outsourcing in Nigeria is
Lack of Quality and Efficiency garnering 22%. The next two challenges are Lack of Trust (15.5%) and
Communication, Coordination and Control Issues (14%). The least challenge is Socio-Cultural Distance
with 8%.
The work of [10] agrees with this result. In his work, Lack of Trust and lack of communication was the major
challenge inhibiting the adoption and spread of software outsourcing. In addition, [19] after an extensive
survey concluded that if Vendors should possess more expertise, and the adequate knowledge, as well as
government incorporating the right policy, then software outsourcing will grow considerably.
5. How can these factors be ranked in relation to how critical they are on successful software
development outsourcing in Nigeria?
Using the result from model coefficients in table 4, the Critical Success Factors are ranked in the Table 8:
Table 8: Factor ranking in relation to successful software development outsourcing
Ranking Critical Success Factor Factor Coefficient
1 Understanding Software Development
Outsourcing Industry
.252
2 Effective Communication and Trust .234
3 Technical Expertise and Knowledge
Transfer
.225
4 Cost Saving and Financial Stability .211
5 Effective Software Privacy and Security .196
6 Overcome Cultural Barrier .188
V. CONCLUSION AND RECOMMENDATION
From results of the analysis conducted in this research, all six (6) success factors were collectively and
individually critical to success of software development outsourcing in the Nigerian environment.
Therefore, client organizations or individuals in Nigeria that are willing to embark on Software Development
Outsourcing should pay close attention to all these factors; but most especially Cost Saving and Financial
Stability, Effective Communication and Trust, Understanding Software Development Outsourcing
Industry, as well as Technical Expertise and Knowledge Transfer. This is because an increase in those
factors will significantly result into more successes in outsourcing the development of their software.
Clients should look out for these critical success factors in software development outsourcing firms. A
further study can also be conducted in line with this research to determine other success factor (s) that

is/are critical to software development outsourcing in Nigeria. This is because our model only explains
73.6% of the variance in our dependent variable. That means other factors that contribute to successful
software development outsourcing makes up about 26.4%.
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