An Assessment of Information Technology Outsourcing Risk

This paper proposes a research model for defining and measuring information technology outsourcing risks. The model is based on transaction cost and agency theory as well as on IT outsourcing literature. Risk is defined here as a set of triplets composed of scenarios, their likelihood and consequences. It draws on the behavioral perspective, which associates risk with the magnitude of a negative consequence of a decision. A survey is being conducted to test the model

Development of a Risk Assessment Model for Global Information Technology Outsourcing

Global Information Technology (IT) outsourcing has been recognized to have important potential benefits. However, researchers and practitioners also recognize potential risks involved in global IT outsourcing, which sometimes lead to undesirable consequences. This paper develops a model to assess risks in global IT outsourcing. Specifically, this paper begins by identifying global IT outsourcing risk factors by considering the national infrastructure, organizational infrastructure, and project environment. Second, a Global IT Outsourcing (GITO) engagement model for risk assessment is developed to logically link all these risk factors together. Third, one quantifiable approach based on a relative-weighted assessment model is presented to demonstrate how the risks in the GITO engagement model can actually be measured and assessed. Such an overall measurement of global IT outsourcing risks establishes a reference point for assessing global IT project outsourcing risks, and will assist managers to enhance global IT outsourcing’s effectiveness and realize its vast potential. This paper will also benefit high-level decision makers including executives, policy planners, and managers working on decisions regarding global IT outsourcing, such as decisions on selecting an outsourcee country with a lower level of risk

Offshore Information Systems Outsourcing: Strategies and Scenarios

This paper presents the findings of an ongoing research study into offshore information technology and systems outsourcing. Fieldwork was conducted in India and the United Kingdom to identify different strategies and scenarios. Based on the premise that offshore outsourcing poses greater risks than using suppliers from the home country, the research develops a risk assessment matrix comprising four scenarios: body shopping; maintenance and support of system hardware and software; IT architecture design; and strategy and product development. As offshore outsourcers develop resources and capabilities to offer high value-added work, this increases their own risk, and those of the customer

Key Strategies Used to Mitigate Business Risk when Managing Offshore Outsourcing

Ineffective risk management strategies can cause negative consequences to an organization’s business processes and operational costs. When engaging in offshore outsourcing, Organizational leaders who lack effective risk management strategies encounter negative customer experiences, interrupted business processes, wasteful resources, and increased operational costs. Grounded in the resource-based view theory, the purpose of the qualitative multiple case study was to explore strategies used to mitigate business risk when managing offshore outsourcing. Four outsourcing professionals in the information technology and consulting sectors who successfully managed risks during offshore outsourcing participated in the study. Data sources were semistructured interviews and a review of publicly available outsourcing best practices information on company websites. Five themes identified through thematic analysis included prequalification of vendors, effective communication at all levels, solid contractual arrangement, quality of vendor experience, and stakeholder involvement. A key recommendation for organizational leaders is to communicate across all organizational levels and use quality assessment tools to monitor the offshore vendor\u27s effectiveness. The implications for positive social change include the potential to provide access to a larger talent pool and reduce the expenses associated with bringing on new employees, making companies more profitable

Climate Change Reporting: A Resource Based Perspective

Kajian ini dilakukan untuk mengkaji tahap serta faktor yang mengalakkan laporan pemanasan global di antara syarikat-syarikat yang tersenarai di Bursa Malaysia. This study investigates the extent of climate change disclosure among Malaysian public listed companies

Examining client perceptions of partnership quality and its dimensions in an IT outsourcing relationship

This paper reports on an empirical study of the multidimensionality of partnership quality in IT outsourcing arrangements and the relationships between these dimensions of partnership quality. A two-phase national survey was conducted to collect empirical data to confirm the dimensions of partnership quality in an IT outsourcing arrangement from the client organisation perspective and to identify the significant relationships between these dimensions using a second generation multivariate analysis technique—partial least squares (PLS). The findings from results of the data analyses show that inter-organisational trust, shared business understanding and to a lesser extent, functional and dysfunctional conflict between the client organisation and the outsourcing vendor in an IT outsourcing relationship are the key determinants of partnership quality. The key outcome variable for high partnership quality between the client organisation and the outsourcing vendor in an IT outsourcing relationship is mutual beneficial sharing of risks and benefits. Commitment in an IT outsourcing relationship is confirmed as a multidimensional construct of behaviour commitment and temporal/continuance commitment and was found to be influenced by the other dimensions of partnership quality. The key findings of this study provide support for the notion that trust and shared business understanding are key drivers in the IT outsourcing partnership style relationship ensuring that the sharing of risks and benefits are realised and conflict is minimised leading to a high quality and ultimately successful partnership between the client organisation and the outsourcing vendor. Furthermore our findings indicate that behavioural commitment to the contractual obligations of an IT outsourcing relationship sustains an ongoing temporal commitment to the partnership between the client organisation and the outsourcing vendor

Risk Mitigation Of Outsourcing Manufacturing Process: A Study On The Semiconductor Manufacturing Organizations In Malaysia

Penggunaan perkhidmatan pihak ketiga daripada proses pembuatan semikonduktor menjadi sebahagian daripada strategi korporat sebuah organisasi yang didorong oleh kelebihan kos dan fleksibiliti dalam ketidakpastian. Outsourcing of semiconductor manufacturing process is becoming integral part of the corporate strategy of an organization which is driven by cost advantage and flexibility during uncertainty

Decision Support Tools for Cloud Migration in the Enterprise

This paper describes two tools that aim to support decision making during the migration of IT systems to the cloud. The first is a modeling tool that produces cost estimates of using public IaaS clouds. The tool enables IT architects to model their applications, data and infrastructure requirements in addition to their computational resource usage patterns. The tool can be used to compare the cost of different cloud providers, deployment options and usage scenarios. The second tool is a spreadsheet that outlines the benefits and risks of using IaaS clouds from an enterprise perspective; this tool provides a starting point for risk assessment. Two case studies were used to evaluate the tools. The tools were useful as they informed decision makers about the costs, benefits and risks of using the cloud.Comment: To appear in IEEE CLOUD 201