Risk management practices in IT outsourcing projects

Abstract

Risk management in IT outsourcing, projects is a identifying, analyzing, controlling and reducing risks IT outsourcing projects life cycle. Risk management is important as the practices of risk management will reduce the risks thus lead to success in IT outsourcing projects. Risk management should be conducted in IT outsourcing as it will foresee' risks that might disturb the smooth flowing of IT outsourcing and prevent or reduce the impact of risks if they occur. Therefore, the primary objective of this paper is to analyze how organizations conducted risk management in IT outsourcing practices. The findings revealed that organizations highly considered the last phase of risk management in IT outsourcing which is on-going monitoring. The organizations least considered the first phase; analysis of decision to outsource whereas this phase is very important as a preparation to enter IT outsourcing activities. Therefore, even though other phases were highly considered, lack of initial preparation will reduce the probability of success in IT outsourcing. For future works, the weaknesses and vulnerability of current practices will then be enhanced and framework of risk management in IT outsourcing will then be developed.