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Managing IT Outsourcing Risk: Lessons Learned

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  • Benoit A. Aubert

    ()

  • Michel Patry

    ()

  • Suzanne Rivard

    ()

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    Abstract

    This document takes stock from several studies on outsourcing risk. A definition of risk is offered and illustration from many case studies is used to show how risk can be managed. Results show that an active risk management approach can reduce risk exposure subtantially while enabling the organizations to still reap the benefits associated with outsourcing. Cet article fait un constat des leçons tirées de récentes analyses du risque d'impartition. Une définition opérationnelle du risque d'impartition est donnée. Les mécanismes de gestion de risque sont également discutés. Les résultats de différentes études démontrent qu'une gestion active du risque permet de réduire sensiblement les niveaux d'exposition au risque, notamment dans le cas de contrats d'impartition des technologies de l'information.

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    File URL: http://www.cirano.qc.ca/pdf/publication/2001s-39.pdf
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    Bibliographic Info

    Paper provided by CIRANO in its series CIRANO Working Papers with number 2001s-39.

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    Date of creation: 01 May 2001
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    Handle: RePEc:cir:cirwor:2001s-39

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    Related research

    Keywords: Outsourcing of IS; IS risk management; agency theory; transaction cost economics; decision making under risk and uncertainty; Impartition; gestion des risques; agence; coûts de transaction; décision; risque et incertitude;

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    1. John Anderson & Ram Narasimhan, 1979. "Assessing Project Implementation Risk: A Methodological Approach," Management Science, INFORMS, vol. 25(6), pages 512-521, June.
    2. Grossman, Sanford J & Hart, Oliver, 1985. "The Cost and Benefits of Ownership: A Theory of Vertical and Lateral Integration," CEPR Discussion Papers 70, C.E.P.R. Discussion Papers.
    3. Aubert, B. A. & Rivard, S. & Patry, M., 1996. "Development of measures to assess dimensions of IS operation transactions," Omega, Elsevier, vol. 24(6), pages 661-680, December.
    4. Armen A. Alchian & Harold Demsetz, 1971. "Production, Information Costs and Economic Organizations," UCLA Economics Working Papers 10A, UCLA Department of Economics.
    5. Herbert A. Simon, 1991. "Organizations and Markets," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 25-44, Spring.
    6. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics
      [The Handbook of Organizational Economics]
      ," Introductory Chapters, Princeton University Press.
    7. Barzel, Yoram, 1982. "Measurement Cost and the Organization of Markets," Journal of Law and Economics, University of Chicago Press, vol. 25(1), pages 27-48, April.
    8. Langlois, Richard N. & Robertson, Paul L., 1992. "Networks and innovation in a modular system: Lessons from the microcomputer and stereo component industries," Research Policy, Elsevier, vol. 21(4), pages 297-313, August.
    9. David E. M. Sappington, 1991. "Incentives in Principal-Agent Relationships," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 45-66, Spring.
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    Cited by:
    1. Jean-Grégoire Bernard & Suzanne Rivard & Benoit A. Aubert, 2002. "Évaluation du risque d'implantation de progiciel," CIRANO Project Reports 2002rp-15, CIRANO.

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