Surveying the risks and benefits of IT outsourcing

Djavanshir, G. Reza

doi:10.1109/mitp.2005.153

Cited by 25 publications

(17 citation statements)

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“…To mitigate this risk, organizations need to assess a vendor country's track record on intellectual property protection, to verify the extent to which the business interests of all parties will be protected (Djavanshir, 2005). Client companies should also pay close attention to the experiences of other companies doing business in that country.…”

Section: Intellectual Propertymentioning

confidence: 99%

“…If this function is suddenly interrupted, the extra expense required to restart operations (either onshore or at another offshore location) can be considerable (Ramanujan and Jane, 2006). In a survey of senior IT managers, political risks, specifically relating to the political situation in a hosting country, are a major concern (Djavanshir, 2005). Offshoring exposes an organization to risks from political unrest and instability, wars, confiscations, nationalizations, and terrorism.…”

Section: Political Risksmentioning

confidence: 99%

“…Offshoring exposes an organization to risks from political unrest and instability, wars, confiscations, nationalizations, and terrorism. These are in addition to the hosting country's governmental policies, regulations, and attitudes toward foreign businesses (Djavanshir, 2005). Any of these exposures considered individually, or as part of a whole, represents significant risk to the organization and potential financial exposure.…”

Section: Political Risksmentioning

confidence: 99%

“…Some risks of offshored projects are identical to those faced by their non-offshored counterparts. Offshoring exposes firms to additional risks in host countries (Djavanshir, 2005), and the risks this paper considers are either unique to or exacerbated by offshoring.…”

Section: Summary Of Offshoring Risk Management Issuesmentioning

confidence: 99%

“…Operating offshore places U.S. organizations outside U.S. jurisdiction, potentially leaving them less protected than they would be while operating domestically. Offshoring exposes companies to information vulnerability and security risks that can result from a lack of regulation and introduces new forms of risk by creating more opportunities for incursion, accident, or exposure (Djavanshir, 2005;Goodman and Ramer, 2007). Many of these incidents are unlikely to be prosecuted or otherwise held accountable in many potential host countries.…”

Section: A Framework For Managing Offshoring Risksmentioning

confidence: 99%

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Risk Effect on Offshore Systems Development Project Cost

DeHondt

Nezlek

2010

CIT

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Organizations frequently consider offshore systems development in the belief that projects can be completed at 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.

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Section: Intellectual Propertymentioning

confidence: 99%

Section: Political Risksmentioning

confidence: 99%

Section: Political Risksmentioning

confidence: 99%

Section: Summary Of Offshoring Risk Management Issuesmentioning

confidence: 99%

Section: A Framework For Managing Offshoring Risksmentioning

confidence: 99%

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Risk Effect on Offshore Systems Development Project Cost

DeHondt

Nezlek

2010

CIT

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A Study of Multi-factor Driven Software Outsourcing Talents Training System

Zhang

Yang

2012

Advances in Intelligent and Soft Computing

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Toward Innovative Model Based Enterprise IT Outsourcing

Kulkarni

Sunkle

2013

Progress in Pattern Recognition, Image Analysis, Computer Vision, and Applications

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There are signs that cost arbitrage model of outsourcing engagement between enterprises and service providers will have to change to one based on value generation. Automation decisions taken by siloized businesses under cost arbitrage models have led to complex cost-ineffective situations. Both these situations may be addressed by an innovative business model based on product family concepts that systematically targets transactional and transformational needs of enterprises with focus on value generation using analysis and operational world views of enterprise IT systems. We motivate and elaborate such an approach. Our contributions are innovation that leads to mutual winwin situation by enabling service providers to service IT needs of multiple enterprises of same vertical and by enabling enterprises to reap value-oriented benefits with analysis and operational world views of IT systems thus serviced.

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Surveying the risks and benefits of IT outsourcing

Cited by 25 publications

References 0 publications

Risk Effect on Offshore Systems Development Project Cost

Risk Effect on Offshore Systems Development Project Cost

A Study of Multi-factor Driven Software Outsourcing Talents Training System

Toward Innovative Model Based Enterprise IT Outsourcing

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