Risk Effect on Offshore Systems Development Project Cost

Organizations frequently consider offshore systems development in the belief that projects can be completed for lower cost.  While prices quoted by offshore vendors are often very appealing when compared with domestic vendors, additional risks must be considered when looking into offshore systems development.  These risks typically take the form of intangible and indirect project costs which add to the total cost of the delivered system.  This paper describes and classifies these risks, which fall into three primary categories of security risks, legal risks, and general risks.  Suggestions for incorporating these intangible and indirect costs into the decision making process, and their effects on total project costs, are offered for the offshore v. domestic vendor selection process.</p

Risk Effect on Offshore Systems Development Project Cost

Organizations frequently consider offshore systems development in the belief that projects can be completed for lower cost.  While prices quoted by offshore vendors are often very appealing when compared with domestic vendors, additional risks must be considered when looking into offshore systems development.  These risks typically take the form of intangible and indirect project costs which add to the total cost of the delivered system.  This paper describes and classifies these risks, which fall into three primary categories of security risks, legal risks, and general risks.  Suggestions for incorporating these intangible and indirect costs into the decision making process, and their effects on total project costs, are offered for the offshore v. domestic vendor selection process.</p

Motivation for Writing the Paper Risk Effect on Offshore Systems Development Project Cost

This paper discusses the motivation behind the original version of the paper Risk Effect on Onshore Systems Development Cost, and why the paper was revised for publication in this Special Issue. This revised paper more effectively supports our belief that considering all the risk-driven project costs in offshoring may result in total project costs exceeding domestic solutions.</p

Massachusetts Offshore Wind Future Cost Study

The Special Initiative on Offshore Wind is an independent project at the University of Delaware's College of Earth, Ocean and Environment that supports the advancement of offshore wind as part of a comprehensive solution to the most pressing energy problems facing the United States.  The Special Initiative on Offshore Wind provides expertise, analysis, information sharing, and strategic partnership with industry, advocacy and government stakeholders to build understanding and drive the deployment of offshore wind

CO-LOCATED WAVE AND OFFSHORE WIND FARMS: A PRELIMINARY CASE STUDY OF AN HYBRID ARRAY

In recent years, with the consolidation of offshore wind technology and the progress carried out for wave energy technology, the option of co-locate both technologies at the same marine area has arisen. Co-located projects are a combined solution to tackle the shared challenge of reducing technology costs or a more sustainable use of the natural resources. In particular, this paper deals with the co-location of Wave Energy Conversion (WEC) technologies into a conventional offshore wind farm. More specifically, an overtopping type of WEC technology was considered in this work to study the effects of its co-location with a conventional offshore wind park

Risk Management in the Arctic Offshore: Wicked Problems Require New Paradigms

Recent project-management literature and high-profile disasters—the financial crisis, the BP Deepwater Horizon oil spill, and the Fukushima nuclear accident—illustrate the flaws of traditional risk models for complex projects. This research examines how various groups with interests in the Arctic offshore define risks. The findings link the wicked problem framework and the emerging paradigm of Project Management of the Second Order (PM-2). Wicked problems are problems that are unstructured, complex, irregular, interactive, adaptive, and novel. The authors synthesize literature on the topic to offer strategies for navigating wicked problems, provide new variables to deconstruct traditional risk models, and integrate objective and subjective schools of risk analysis

Information systems offshore outsourcing: a descriptive analysis

Purpose - The present paper has as its aim to deepen in the study of Information Systems Offshore Outsourcing, proposing three essential steps to make this decision: weighing up the advantages and risks of Offshore Outsourcing; analysing the taxonomy of this phenomenon; and determining its current geography. Design/Methodology/Approach - With that objective in mind, it was decided to base the research work on the literature about this topic and the review of reports and statistics coming from different sources (consultants, the press, public institutions, etc.). Findings - Offshore Outsourcing has grown vertiginously in recent years. Its advantages exceed even those of onshore outsourcing, though it also involves greater risks derived from the (cultural and physical) distance existing between customer and provider. Various types of services and customer-provider relationships hide under the umbrella of Offshore Outsourcing; i.e. it is not a homogeneous phenomenon. The main Offshore Outsourcing customers can be found in the USA and Europe, mainly in the UK but also in other countries such as Germany and France. As for provider firms, most of them are located in Asia −outstandingly in India but also in China and Russia. At present, there are important providers scattered in other continents as well. Originality/Value - The conclusions suggest that the range of potential Offshore Outsourcing destinations must be widened and that the search for a provider cannot be based exclusively on cost savings; other considerations such as quality, security and proximity of the provider must also be taken into consideration. That is precisely the reason why the study of new countries like Spain as Offshore Outsourcing destinations is proposed

[Report of] Specialist Committee V.4: ocean, wind and wave energy utilization

The committee's mandate was :Concern for structural design of ocean energy utilization devices, such as offshore wind turbines, support structures and fixed or floating wave and tidal energy converters. Attention shall be given to the interaction between the load and the structural response and shall include due consideration of the stochastic nature of the waves, current and wind

Risk assessment for the installation and maintenance activities of a low-speed tidal energy converter

The study presented in this paper, is part of the Deep Green project, which includes the development of a power converter/device for employment in low-speed tidal currents. It mainly focuses on the initial steps to investigate the ways on how to minimize the risks during handling, operation and maintenance (O&M) activities of the full-scale device particularly in offshore operations. As a first tep, the full-scale device offshore installation and O&M tasks are considered. The overall risk analysis and decision making methodology is presented including the Hazard Identification (HAZID) approach which is complemented with a risk matrix for various consequence categories including personnel Safety (S), Environmental impact (E), Asset integrity (A) and Operation (O). In this way, all the major risks involved in the mentioned activities are identified and actions to prevent or mitigate them are presented. The results of the HAZID analysis are also demonstrated. Finally, the last section of this paper presents the discussion, conclusions and future actions for the above-mentioned activities regarding the full-scale device

Failure mode identification and end of life scenarios of offshore wind turbines: a review

In 2007, the EU established challenging goals for all Member States with the aim of obtaining 20% of their energy consumption from renewables, and offshore wind is expected to be among the renewable energy sources contributing highly towards achieving this target. Currently wind turbines are designed for a 25-year service life with the possibility of operational extension. Extending their efficient operation and increasing the overall electricity production will significantly increase the return on investment (ROI) and decrease the levelized cost of electricity (LCOE), considering that Capital Expenditure (CAPEX) will be distributed over a larger production output. The aim of this paper is to perform a detailed failure mode identification throughout the service life of offshore wind turbines and review the three most relevant end of life (EOL) scenarios: life extension, repowering and decommissioning. Life extension is considered the most desirable EOL scenario due to its profitability. It is believed that combining good inspection, operations and maintenance (O&M) strategies with the most up to date structural health monitoring and condition monitoring systems for detecting previously identified failure modes, will make life extension feasible. Nevertheless, for the cases where it is not feasible, other options such as repowering or decommissioning must be explored