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Risk Factors in IT Outsourcing Partnerships: Vendors’ Perspective

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  • Matilda Alexandrova

Abstract

In recent years, information technology (IT) outsourcing is a widespread practice in the global business today. Business organizations decide to transfer such kind of services to other firms (vendors) in search of cost-related and other competitive advantages. Identification and handling of risks appears to be crucial for IT outsourcing success. The objective of this article is to identify the main risk factors related to IT outsourcing partnerships from the perspective of Bulgarian vendors on the basis of empirical study. The analysis is based on theoretical grounds provided by the specialized literature and utilizes selected results from a survey of outsourcing relations between Bulgarian vendor organizations and their clients (outsourcers). The study is focused on the risk factors that could potentially hinder the formation and development of strategic outsourcing partnerships. Some of these risk factors act as threats for outsourcing success and their potential effects need to be considered within the risk mitigation strategies of IT outsourcing service providers.

Suggested Citation

  • Matilda Alexandrova, 2015. "Risk Factors in IT Outsourcing Partnerships: Vendors’ Perspective," Global Business Review, International Management Institute, vol. 16(5), pages 747-759, October.
    • Handle: RePEc:sae:globus:v:16:y:2015:i:5:p:747-759
    DOI: 10.1177/0972150915591427
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    References listed on IDEAS

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    1. Mary C. Lacity & Leslie P. Willcocks, 2009. "Information Systems and Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-59483-8, December.
    2. Willcocks, Leslie & Choi, Chong Ju, 1995. "Co-operative partnership and 'total' IT outsourcing: From contractual obligation to strategic alliance?," European Management Journal, Elsevier, vol. 13(1), pages 67-78, March.
    3. Aundhe, Madhuchhanda Das & Mathew, Saji K., 2009. "Risks in offshore IT outsourcing: A service provider perspective," European Management Journal, Elsevier, vol. 27(6), pages 418-428, December.
    4. Leslie P. Willcocks & Mary C. Lacity, 2009. "The Practice of Outsourcing," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-24084-1, December.
    5. Matilda Alexandrova, 2011. "It Outsourcing Partnerships In Bulgaria: Strategic Orientation "," Analele Stiintifice ale Universitatii "Alexandru Ioan Cuza" din Iasi - Stiinte Economice (1954-2015), Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, vol. 58, pages 555-569, november.
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    Cited by:

    1. Abhishek Narain Singh & M.P. Gupta, 2019. "Information Security Management Practices: Case Studies from India," Global Business Review, International Management Institute, vol. 20(1), pages 253-271, February.
    2. Amar Raju G. & Souvik Roy & Santanu Mandal, 2018. "Determinants of Website Usability: Empirical Evidence from Tourism Sector in India," Global Business Review, International Management Institute, vol. 19(6), pages 1640-1662, December.
    3. Tran Thi Van Trang & Mai Ngoc Khuong, 2023. "The role of risk factors, partner compatibility, organizational creativity and co-creation value on firm performance: evidence from SMEs in Vietnam," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 41(2), pages 449-475.
    4. Carlos Sanchís-Pedregosa & María-del-Mar Gonzalez-Zamora & María-José Palacín-Sánchez, 2018. "Outsource Services to Improve Financial Performance: Is There a Limit?," Global Business Review, International Management Institute, vol. 19(1), pages 21-31, February.
    5. Sukruth Suresh & T. Ravichandran, 2022. "Value Gains in Business Process Outsourcing: The Vendor Perspective," Information Systems Frontiers, Springer, vol. 24(2), pages 677-690, April.
    6. Ekaterina Sorokina, 2016. "Modeling and Estimation of the Risk When Choosing a Provider," Papers 1603.05294, arXiv.org.
    7. Rajorshi Sen Gupta, 2018. "Risk Management and Intellectual Property Protection in Outsourcing," Global Business Review, International Management Institute, vol. 19(2), pages 393-406, April.

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