Managing IT Outsourcing Risk: Lessons Learned

This document takes stock from several studies on outsourcing risk. A definition of risk is offered and illustration from many case studies is used to show how risk can be managed. Results show that an active risk management approach can reduce risk exposure subtantially while enabling the organizations to still reap the benefits associated with outsourcing. Cet article fait un constat des leçons tirées de récentes analyses du risque d'impartition. Une définition opérationnelle du risque d'impartition est donnée. Les mécanismes de gestion de risque sont également discutés. Les résultats de différentes études démontrent qu'une gestion active du risque permet de réduire sensiblement les niveaux d'exposition au risque, notamment dans le cas de contrats d'impartition des technologies de l'information.Outsourcing of IS, IS risk management, agency theory, transaction cost economics, decision making under risk and uncertainty, Impartition, gestion des risques, agence, coûts de transaction, décision, risque et incertitude

IT Outsourcing Risk Management at British Petroleum

This paper reports the results of a study of three successive IT outsourcing contracts at British Petroleum (BP). We offer an operational definition of IT outsourcing risk and use it to assess the risk exposure associated with each contract. We then examine how the management at BP dealt with outsourcing risk. Our results show that careful and deliberate risk management can substantially attenuate the level of risk exposure, and that IT outsourcing risks can be managed. Ce document présente les résultats d'une étude de trois contrats d'impartition successifs. L'étude fut conduite chez British Petroleum. Une définition opérationnelle du risque d'impartition est donnée. Cette définition est ensuite utilisée pour déterminer le niveau de risque associé à chacun des contrats. Les mécanismes de gestion de risque sont également identifiés. Les résultats démontrent qu'une gestion active du risque permet de réduire sensiblement les niveau d'exposition au risque, notamment dans le cas de contrats d'impartition des technologies de l'information.Outsourcing of IS, IS risk management, agency theory, transaction cost economics, case study, Impartition des systèmes informatiques, gestion du risque d'impartition, gestion du risque, théories de l'agence et des coûts de transaction, étude de cas

Managing IT Outsourcing Risk: Lessons Learned

Cet article fait un constat des leçons tirées de récentes analyses du risque d'impartition. Une définition opérationnelle du risque d'impartition est donnée. Les mécanismes de gestion de risque sont également discutés. Les résultats de différentes études démontrent qu'une gestion active du risque permet de réduire sensiblement les niveaux d'exposition au risque, notamment dans le cas de contrats d'impartition des technologies de l'information.This document takes stock from several studies on outsourcing risk. A definition of risk is offered and illustration from many case studies is used to show how risk can be managed. Results show that an active risk management approach can reduce risk exposure subtantially while enabling the organizations to still reap the benefits associated with outsourcing

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

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

Theorizing Risk and Research: Methodological Constraints and Their Consequences

Conflict, postconflict settings, and other risky research sites are important with wide-ranging policy implications. Microlevel, field-based research lends critical insights to how conflicts work and the mechanisms behind macrolevel correlations that underpin quantitative political science. This article identifies how the risks associated with conflict and postconflict contexts influence researchers’ choices by theorizing the existence of distinct adaptive strategies. Specifically, researchers facing elevated risk generally manage it through three main strategies: outsourcing risk, avoiding risk, and internalizing risk. We argue that these strategies systematically shape and circumscribe outputs. We conclude by discussing how the relationship between risky fieldwork and what we know about conflict is poorly acknowledged. Thinking about how we manage risk should play a larger role in both our preparation for and interpretation of research, particularly in conflict and postconflict contexts

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

Managing the Risk of IT Outsourcing

While it can bring several benefits, IT outsourcing entails some risks. As it is the case in other types of investments or business ventures, the risk associated to an IT outsourcing project must be evaluated and managed. This paper proposes a framework for the management of IT outsourcing risk, and assesses the usefulness of the framework using data gathered about two cases of system development outsourcing. After providing a conceptual definition of risk and of risk exposure, the paper presents the proposed risk management framework. The two cases are then described along with the evaluation of the level of risk exposure of each, and the risk management mechanisms that were included in the contracts. The results of the study suggest that by charting the various items that contribute to risk exposure, and by specifically applying the appropriate mechanisms that can target the elements with the higher levels of risk exposure, outsourcing risk can be adequately managed. L'impartition des services informatiques, même si elle peut entrainer de nombreux bénéfices, implique un risque. Comme tout type d'investissement, ce risque doit être évalué et géré. Cet article propose un cadre d'analyse pour le risque d'impartition des services informatiques, et évalue ce cadre à l'aide d'une étude de cas. Ce cas présente deux décisions d'impartition de services informatiques, dans le domaine de l'assurance. Le niveau de risque de chaque décision est évalué et les mécanismes permettant de gérer ce risque sont présentés. Les résultats montrent que, en détaillant les facteurs de risque et les événenents correspondants, il est possible de cibler les éléments les plus risqués et de réduire le risque à un niveau acceptable.Outsourcing of IS, IS risk management, agency theory, transaction cost economics, case study, Sous-traitance des systèmes informatiques, gestion du risque des systèmes informatiques, théorie de l'agance, économie des coûts de transaction, étude de cas

Towards a theory of information systems outsourcing risk

Information systems outsourcing risks are a vital component in the decision and management process associated to the provision of information systems and technology services by a provider to a customer. Although there is a rich literature on information systems outsourcing risks, the accumulated knowledge on this area is fragmented. In view of this situation, an argument is put forward on the usefulness of having a theory that integrates the various constructs related to information systems outsourcing risks. This study aims to contribute towards the synthesis of that theory, by proposing a conceptual scheme for interpreting the literature and presenting a preliminary version of a catalog of information systems outsourcing risks. Proposals for subsequent work towards the generation of the theory of information systems outsourcing risk are suggested