Software Development Project Risk: A Second Order Factor Model Validated in the Indian Context

Authors:
Sam Thomas;M. Bhasi
Affiliations:
School of Management Studies, Cochin University of Science and Technology, Cochin, India;School of Management Studies, Cochin University of Science and Technology, Cochin, India
Venue:
International Journal of Information Technology Project Management
Year:
2012

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Abstract

Software development risk points to an aspect of a development task, process or environment which, if ignored, tends to adversely affect the project performance. Observations from literature show that while many studies on software project risk construct have been done in developed countries, there is scarcity of literature from Asian countries, especially India. Hence, this research was formulated with an objective of studying software development project risk in the Indian context. Data related to the presence of risk items was collected from 527 software development projects in India. This data was factor analyzed to identify five major risk dimensions namely Team risk, Project planning and Execution Risk, External risk, User risk and Project complexity risk. The resulting factor structure was validated through Confirmatory Factor Analysis. Software project risk was seen to be best represented by a second order factor model with five first order factors.