Agile Software Development Practices and Success in Outsourced Projects: The Moderating Role of Requirements Risk

Although agile practices are gaining in popularity, there is little evidence showing how particular agile practices, in particular those involving the client, affect the success of outsourced software projects. Data from a matched survey of sponsors and developers in 60 outsourced information systems projects indicate negative effects of continuous analysis and positive effects of joint decision making and continuous integration on project success. Moreover, interaction analyses show that some positive effects are enhanced and negative effects dampened when requirements risk is high. These findings caution against continuous analysis in outsourced projects while they support joint decision making and continuous integration. The findings also empirically substantiate the largely untested assertion that agile practices help cope with changing requirements.