Differences between clients' and vendors' perceptions of IT outsourcing risks

project partnering as the mitigation approach

Information technology (IT) outsourcing has been a business practice for more than two decades. Researchers have suggested successful risk management as a key factor in successful IT outsourcing projects implementation. The documented investigations, however, have mainly addressed risk management only from a single perspective of either clients or IT vendors. Considering only one perspective allows for an omission of possible risks considered critical by the other party, as suggested by agency theory. This study explored the potential perception inconsistency regarding the risks between the client and the vendor for IT outsourcing projects by using a quasi-Delphi approach. The analysis results indicated some inconsistencies in the risks perceived by the two parties.
member content locked

Become a PMI member to gain access

or Join



Related Content

  • PM Network

    Outsourcing Done Right member content open

    By Lev-Shamur, Gilad Organizations often encounter a range of challenges when they outsource their project management. Some of these issues need to be addressed at the beginning of the journey, while others require…

  • Build the next-gen PMO – by outsourcing! member content open

    By Malik, Imran More companies are outsourcing the functions of a project management office (PMO) in order to improve organizational performance. This paper covers the different PMO outsourcing models (supportive,…

  • PM Network

    Supply & demand member content open

    By Jackson, Michelle Bowles Managing multiple vendors on a project carries a host of risks, and project professionals have long searched for ways to better handle vendor relationships. This article discusses improvements in…

  • PM Network

    Alpine Access, Denver, Colorado, USA member content open

    By Fister Gale, Sarah Outsourcing is a common business practice; however, it presents additional security issues. This article discusses how a call center services outsourcer, which uses agents who work from home,…

  • PMI Global Congress—Asia Pacific

    When agendas override objectives member content open

    By Belling, Shawn D. This paper examines an actual case about one particular sponsor who did not enforce a contract when a vendor refused to meet the scope.