Global Information Technology (IT) outsourcing has been recognized to have important potential benefits. However, researchers and practitioners also recognize potential risks involved in global IT outsourcing, which sometimes lead to undesirable consequences. This paper develops a model to assess risks in global IT outsourcing. Specifically, this paper begins by identifying global IT outsourcing risk factors by considering the national infrastructure, organizational infrastructure, and project environment. Second, a Global IT Outsourcing (GITO) engagement model for risk assessment is developed to logically link all these risk factors together. Third, one quantifiable approach based on a relative-weighted assessment model is presented to demonstrate how the risks in the GITO engagement model can actually be measured and assessed. Such an overall measurement of global IT outsourcing risks establishes a reference point for assessing global IT project outsourcing risks, and will assist managers to enhance global IT outsourcing’s effectiveness and realize its vast potential. This paper will also benefit high-level decision makers including executives, policy planners, and managers working on decisions regarding global IT outsourcing, such as decisions on selecting an outsourcee country with a lower level of risk.
Wei, June and Peach, Brian
"Development of a Risk Assessment Model for Global Information Technology Outsourcing,"
Journal of International Technology and Information Management: Vol. 15
, Article 4.
Available at: http://scholarworks.lib.csusb.edu/jitim/vol15/iss4/4