Significant Risks of Outsourced IT Projects

Abstract

The volume of IT outsourcing is continuously growing due to benefits of outsourcing and various constraints of the organizations. However, there are certain risks linked with IT outsourcing. Manifestation of such risks adversely affects the successful completion of outsourced projects and may cause project failure. This study's objective is to explore and rank the significant risks for IT outsourcing. A literature-based list of IT outsourcing risks has been employed for this purpose. Two questionnaire surveys have been conducted to perform Delphi method. After the first round, significant risks for IT outsourcing have been identified. The significant risks have been ranked during the second round. The study also highlights top 10 risks for IT outsourcing. Keeping in view identified and ranked IT outsourcing risks, designing a proactive strategy can address the risks and hence anticipated benefits of IT outsourcing can be achieved