Risks factors associated with offshore IT outsourcing

Abstract

Purpose To provide a framework for risk assessment of offshore IT outsourcing. Design/methodology/approach Based on review of recent literature, this paper has identified major risk categories of offshore IT outsourcing, discussed various risk factors within each category, and provided a general framework for the study of risk factors in this area. Findings Provides a general framework and a check‐list of the major risk factors related to offshore IT outsourcing. Research limitations/implications Suggests further research studies in three specific directions: case‐based studies; country and region risk analysis; and strategic alliance. Practical implications Provides a very helpful guideline for practitioners in assessing various risks involved in offshore IT outsourcing. Originality/value The paper provides a synthesis and analysis of the viewpoints as reflected in the literature on various dimensions of the risks associated with offshore IT outsourcing.