Managing Risk in Decision to Outsource IT Projects

Organizations all around the world are increasingly adopting the activity of outsourcing their IT function to service providers. However, the decision to outsource IT project is not an easy task. The risk will mostly affect the organizations as opposed to service provider. Therefore, it is important for the managers to manage this activity. This paper presents how organizations manage their decision to outsource IT projects. Mixed method was used to gather the information regarding current practices. The analysis revealed that some organizations did not have structured process to come up with the right decision to outsource. In the other hand, some of them assessed the risk associated with the decision to outsource. The analysis of the findings was then used as a basis of the proposed framework of Risk Management in Decision to Outsource IT Project. The proposed framework can act as a guideline to help organizations in making the decision to outsource as well as assessing and managing risk associated with the decision to outsource IT project.