Managing the Risk of IT Outsourcing

  • Authors:
  • Sylvie Dussault

  • Affiliations:
  • -

  • Venue:
  • HICSS '99 Proceedings of the Thirty-second Annual Hawaii International Conference on System Sciences-Volume 7 - Volume 7
  • Year:
  • 1999

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Abstract

This paper proposes a framework for the management of IT outsourcing risk, and assesses the usefulness of the framework using two cases of system development outsourcing. After providing a conceptual definition of risk, the paper proposes a risk management framework. The cases are then described along with the evaluation of their level of risk, and the risk management mechanisms that were included in the contracts. The results suggest that by charting the items that contribute to risk exposure, and by specifically applying the appropriate mechanisms that target the elements with the higher levels of risk, outsourcing risk can be adequately managed.