Abstract. Information systems development (ISD) projects are highly complex,
with different groups of people having to collaborate and exchange their
knowledge. Considering the intensity of knowledge exchange that takes place in
outsourced ISD projects, in this study a conceptual model was developed, aiming
to examine the influence of four antecedents, i.e. standardization, requirement
volatility, internal integration, and external integration, on two dependent
variables, i.e. process performance and product performance. Data were
collected from 46 software companies in four big cities in Indonesia. The
collected data were examined to verify the proposed theoretical model using the
partial least square structural equation modeling (PLS-SEM) technique. The
results show that process performance is significantly influenced by internal
integration and standardization, while product performance is significantly
influenced by external integration and requirement volatility. This study
contributes to a better understanding of how knowledge integration can be
managed in outsourced ISD projects in view of increasing their success.