Assessing the risk exposure in IT outsourcing for large companies

Rusu, Lazar; Hodosi, Georg

doi:10.1504/ijitm.2011.037760

Cited by 13 publications

(6 citation statements)

References 25 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…A number of study on outsourcing risk is conducted, but most of them focus on the IS or IT perspective, only a few of them have study risk from the SDO perspective . Moreover, numerous research works on outsourcing partnership are restricted to onshore model rather than offshore outsourcing .…”

Section: Background and Motivationmentioning

confidence: 99%

Practitioner's view of barriers to software outsourcing partnership formation: An empirical exploration

Ali

Khan

et al. 2019

J Software Evolu Process

View full text Add to dashboard Cite

Software Outsourcing Partnership (SOP) is considered as a kind of risk and reward sharing client‐vendor relationship. Generally, a fruitful outsourcing association might be converted to an outsourcing partnership. The objective of this research is to identify and analyse barriers that are hurdles to vendors in renewing or promoting their ongoing client‐vendor relationship to outsourcing partnership. A questionnaire survey based on the findings of Systematic Literature Review (SLR) was performed with 50 experts. The study identifies five critical barriers such as “insufficient quality of technical capability,” “poor infrastructure,” “poor quality of service,” “communication gap and poor coordination,” and “relational risk.” The results indicate that barriers' insufficient quality of technical capability, poor infrastructure, and poor quality of service were common in four types of experts while insufficient quality of technical capability is common in three levels of experts. Furthermore, barriers were classified based on their criticality from client‐vendor perspective. The results of Spearman correlation test (rs = 0.714 and ρ = 0.000) confirmed that the participant strongly agrees with the outcomes of the SLR. The results suggest that for successful renewal or promotion of their existing outsourcing association, vendor organizations should address all the identified barriers in general and the most common barriers in particular.

show abstract

Section: Background and Motivationmentioning

confidence: 99%

Practitioner's view of barriers to software outsourcing partnership formation: An empirical exploration

Ali

Khan

et al. 2019

J Software Evolu Process

View full text Add to dashboard Cite

show abstract

“…Additionally, the real condition of the whole life cycle is also illustrated in Figure 2, including the smooth two phases, difficulty caused by problems in phases three to five, and the final success achieved after solving problems. [16]. The approach is comprised of seven procedural steps.…”

Section: Discussionmentioning

confidence: 99%

“…For example, the role of service level agreements in relational management of IT outsourcing is examined [15]. Besides the framework, the risk exposure in ITO is assessed based on TCT [16]. Another paper has assessed ITO models in terms of faithfulness and concluded that the models hardly capture all the essential elements of TCT [17].…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

A Novel Dynamic Algorithm for IT Outsourcing Risk Assessment Based on Transaction Cost Theory

Cong

Chen

2015

Discrete Dynamics in Nature and Society

View full text Add to dashboard Cite

With the great risk exposed in IT outsourcing, how to assess IT outsourcing risk becomes a critical issue. However, most of approaches to date need to further adapt to the particular complexity of IT outsourcing risk for either falling short in subjective bias, inaccuracy, or efficiency. This paper proposes a dynamic algorithm of risk assessment. It initially forwards extended three layers (risk factors, risks, and risk consequences) of transferring mechanism based on transaction cost theory (TCT) as the framework of risk analysis, which bridges the interconnection of components in three layers with preset transferring probability and impact. Then, it establishes an equation group between risk factors and risk consequences, which assures the “attribution” more precisely to track the specific sources that lead to certain loss. Namely, in each phase of the outsourcing lifecycle, both the likelihood and the loss of each risk factor and those of each risk are acquired through solving equation group with real data of risk consequences collected. In this “reverse” way, risk assessment becomes a responsive and interactive process with real data instead of subjective estimation, which improves the accuracy and alleviates bias in risk assessment. The numerical case proves the effectiveness of the algorithm compared with the approach forwarded by other references.

show abstract

“…Therefore we use TCT in this paper, which is one of the most used theories for describing outsourcing (Nyrhinen & Dahlberg, 2007), and it is "the best-known, …economic approach to vertical boundaries," according to Klein (2006). Moreover, in a previous research, we applied TCT for large MNCs and found a good agreement between theory and empirical study (Hodosi and Rusu (2007); Rusu and Hodosi (2011); therefore, we will use TCT for large MNCs in this research.…”

Section: Figure 1 Main Activities and The Used Methods In This Researchmentioning

confidence: 96%

A Risk Based View of Influential Factors in IT Outsourcing Relationship for Large Multinational Companies

Hodosi

Rusu

Choo³

2012

International Journal of Social and Organizational Dynamics in IT

Self Cite

View full text Add to dashboard Cite

Information Technology Outsourcing (ITO) is well spread among large Multinational Companies (MNCs) in Europe, and it is expected to increase even more. The authors’ focus is the service buyer company who needs a well working relation with its ITO supplier for handling emergent issues, daily operation and events that have not been foreseen. In the last years, an increasing attention has been paid to improve ITO relationship. Reviewing the research literature, they have not found any studies about Influential Factors (IFs) that could improve the ITO relationship, nor, how risk factors are interrelated to ITO relationship. Therefore, the authors address this issue by providing 15 IFs that could improve the ITO relationship for large MNCs and their providers and could help the service buyers companies’ to concentrate on these IFs. Additionally, the authors developed a framework that could support the ITO decision makers in both mitigating the risks and improving the ITO relationship.

show abstract

Assessing the risk exposure in IT outsourcing for large companies

Cited by 13 publications

References 25 publications

Practitioner's view of barriers to software outsourcing partnership formation: An empirical exploration

Practitioner's view of barriers to software outsourcing partnership formation: An empirical exploration

A Novel Dynamic Algorithm for IT Outsourcing Risk Assessment Based on Transaction Cost Theory

A Risk Based View of Influential Factors in IT Outsourcing Relationship for Large Multinational Companies

Contact Info

Product

Resources

About