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Risks and Benefits of Using Single Supplier in Software Development

Mahajan, Atul (2018)

 
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Mahajan, Atul
Oulun ammattikorkeakoulu
2018
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2018120420076
Tiivistelmä
For many organizations involved in product development where software itself is not a main product, software development needs to be outsourced. Having software development with only internal resource utilization is not a viable option. A good balance of internal resourcing and outsourcing is needed to ensure that development continues as desired. At the same time, the company needs to be self-reliant in cases of crisis with one of the suppliers. In that context, a good mix of suppliers is also desirable.

The aim of this thesis is to study the benefits and risks an organization can face due to single supplier relationship in software development. The focus of the study is on recommending possible solutions to mitigate the identified risks. This is done by considering the importance of relationship with existing supplier, support needed for ongoing activities/development, and safeguard business interests for future.

The study has utilized the Research Methods Map detailed on Jyväskylä University’s web portal “Koppa” (Jyväskylä University. Research Methods Maps). The thesis utilizes multi-method research utilizing research methods such as Qualitative Research for understanding the topic and the background as well as collecting data. In addition, expert knowledge and Case Study approach are used to specifically dive into the details of the topic of this thesis.

The thesis has identified the risks of having a single supplier for software development with respect to various software development methodologies and models used by the customer organization. The impact of different contractual models on the supplier relationship has also been studied. The thesis has identified certain risks and possible solutions to mitigate the risks. The solutions identified will be utilized by the organization used in the case study of this thesis.

The new software development models such as Scaled Agile Framework (SAFe) or DevOps have not been studied into much details. How those development models affect the supplier relationship needs to be studied further.
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