Optimal global sourcing of software development projects
With the main focus on cost reduction in valuation of sourcing alternatives, risk and risk diversification effects are often inadequately considered or completely neglected in decisions associated with global sourcing decisions for software development projects. This systematically results in poor decisions. In this project, we analyze sourcing costs and associated risks as well as interdependencies among both sites and projects. The special focus here is on the identification of correlation effects between sites. A normative model shall be developed, based on e.g. modern portfolio theory, and validated using data from IT services providers.