This book shows IT managers how to identify, mitigate and manage risks in an IT outsourcing exercise. The book explores current trends and highlights key issues and changes that are taking place within outsourcing. Attention is given to identifying the drivers and related risks of outsourcing by examining recently published and existing concepts of IT outsourcing. Founded on academic theory and empirical and quantitative information, this book: incorporates the complete risk identification and mitigation life cycle; highlights the concept of core competency; looks at motivating factors and working relationships of the buyer and supplier; provides background to understand the risks as a result of human factors as defined by the agency theory; reviews the areas of risk that influence the decision to outsource the IT function; examines the forces that determine the equilibrium in the risk profiles for the buyer and supplier; understand the common (and proven) methods that define risks in an IT outsourcing environment; independantly provides both buyer and supplier views of IT outsourcing contract risks; and uniquely identifies the 'Risk Dimension Signature', a tool to measure and manage risks from a departmental and organizational perspective.
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