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Managing IT Outsourcing Risk: Lessons Learned

Author

Listed:
  • Benoit A. Aubert
  • Michel Patry
  • Suzanne Rivard

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.

Suggested Citation

  • Benoit A. Aubert & Michel Patry & Suzanne Rivard, 2001. "Managing IT Outsourcing Risk: Lessons Learned," CIRANO Working Papers 2001s-39, CIRANO.
  • Handle: RePEc:cir:cirwor:2001s-39
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    File URL: http://www.cirano.qc.ca/files/publications/2001s-39.pdf
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    References listed on IDEAS

    as
    1. Alchian, Armen A & Demsetz, Harold, 1972. "Production , Information Costs, and Economic Organization," American Economic Review, American Economic Association, vol. 62(5), pages 777-795, December.
    2. Steven Tadelis & Oliver E.Williamson, 2012. "Transaction Cost Economics," Introductory Chapters,in: Robert Gibbons & John Roberts (ed.), : The Handbook of Organizational Economics Princeton University Press.
    3. Grossman, Sanford J & Hart, Oliver D, 1986. "The Costs and Benefits of Ownership: A Theory of Vertical and Lateral Integration," Journal of Political Economy, University of Chicago Press, vol. 94(4), pages 691-719, August.
    4. Herbert A. Simon, 1991. "Organizations and Markets," Journal of Economic Perspectives, American Economic Association, vol. 5(2), pages 25-44, Spring.
    5. 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.
    6. John Anderson & Ram Narasimhan, 1979. "Assessing Project Implementation Risk: A Methodological Approach," Management Science, INFORMS, vol. 25(6), pages 512-521, June.
    7. 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.
    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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