Article: Risk management in software project outsourcing
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Risk management in software project outsourcing
Contents |
Definition of risks and risk management
Definition of risk: possibility of loss or injury [1]
In software projects risk can refer to negative outcomes of a project or factors leading to negative outcomes. [2]
Major risk factors in software projects
Some of the most important risk factors include: [3]
- Lack of top management commitment to the project
- Failure to gain user commitment
- Misunderstanding the requirements
- Lack of adequate user involvement
- Failure to manage end user expectations
- Changing scope/objections
- Lack of required knowledge/skills in the project personnel
Risk management
Risk management consists of risk management and risk control activities: [4]
Risk assesment
- Risk idenfication
- Risk analysis
- Risk priorization.
Risk control
- Risk-management planning
- Risk resolution
- Risk monitoring.
Relevance to software business
Risk management is relevant to both software companies that develop and maintain software product and companies that provide services to develop and maintain software systems.
Risks in software project outsourcing
In software project outsourcing risk assesment and risk management are important contributors to succes. [2]
Undiserable consequences of IT sourcing from customer perspective: [2]
- Unexpected transition and management costs
- Supplier lock-in
- Costly contractual amendments
- Disputes and litigation
- Service debasement
- Increased costs of services
- Loss of organizational competencies
From supplier perspective some of these outcomes may actually benefit the supplier, but also both the customer and the supplier can gain benefit by addressing and avoiding the consequences.
Example of the phenomena
Theoretical approaches
Currently interesting research questions
Links to related articles
See also
References
- ↑ http://www.merriam-webster.com/dictionary/Risk
- ↑ 2.0 2.1 2.2 Benoit A. Auberl, Michel Patry, Suzanne Rivard, Assessing the Risk of IT Outsourcing, System Sciences, 1998., Proceedings of the Thirty-First Hawaii International Conference on, Vol: 6, p: 685-692, 6-9 Jan 1998
- ↑ Mark Keil, Paul E. Cule, Kalle Lyytinen, Roy C. Schmidt, A framework for identifying software project risks, Communications of the ACM, Volume 41 , Issue 11 (November 1998).
- ↑ Boehm, B.W., Software risk management: principles and practices, Software, IEEE Vol 8. Issue 1. p 32-41, Jan. 1991.