Critical Risk Factors in Outsourced Support Projects of IT

Abstract

The purpose of qualitative in this study is determining the critical risk factors in the IT projects outsourcing as well as determine which element of risk factors has more strength and direction with the information technology outsourcing. This study is operating within the constructivism philosophical posture, utilizing interpretive epistemology and induction theory as the approach of research, applying qualitative research methods as well the case study is the relevant research strategy. This study focuses on semi structured interview for suitable data collection to finding financial risks, technical risks, managerial risks, behavioural risks, and Legal and political risks are five categories of critical risk factors in ITO. The research has addressed low awareness of Risk Management activities within public and private sector organizations, and using from the simple method for risk assessment in outsourced of IT. Hence, this study pointed up common language in the area of Risk Management to facilitate communication among vendors and client as two main sources of ITO agreement.