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Abstract
This paper examines the effects of outsourcing on knowledge transfer among software engineers. It investigates data gathered from interviews and surveys of software engineers who took part in outsourcing and then analyzes the resulting data utilizing both qualitative and quantitative analysis strategies. Five themes emerged from this analysis: Morale, Communication, Locale Differences, Rationale, and Planning. The paper describes the five themes and how they affect knowledge transfer between local and contractor teams. The effects of outsourcing on knowledge transfer among software engineers depends on how ‘software engineer’ is defined. If software engineer is defined as the domestic programmer working for the company outsourcing the work, the effects are minimal. However, if software engineer is defined as the combination of the local engineering team and the outsourcing contractor team, the effects of outsourcing on knowledge transfer between those two teams are significantly more pronounced. Finally, the management implications of these five themes are linked to currently held beliefs of best practices for outsourcing. The paper recommends methods for limiting the effects and mitigating the risk involved with outsourcing software development.