In recent years, agile practices have become popular in the software development industry. Meanwhile, distributed development is becoming an alternative way to develop new systems. The most common mode of distributed development uses outsourcing primarily to reduce costs and ensure timely completion of projects. Agile methods are now being recommended for distributed development. However, the current agile practices break down when subjected to the realities of the outsourced development marked by geographical, language, temporal, social, and cultural barriers. The typical outsourced software project is also larger than the typical agile project. Thus, agile practices need to be modified so as to find application in today's software development environment, which deems outsourcing as an important component. The paper comes up with a collaboration structure that can incorporate modified agile practices for outsourced projects.
