Conceptual Framework on Risk Management in IT Outsourcing Projects
Source: Universiti Teknologi MARA
Outsourcing is becoming a trend nowadays. Malaysia also takes this opportunity and embraces in IT outsourcing. As a result, Malaysia has been ranked as the third most attractive destination for outsourcing after India and China. Despite increasing number of organizations that involve in IT outsourcing, it should be noted that IT outsourcing is not a panacea. It comes together with risks. The risks, if not managed, will lead to outsourcing failure. Even though other areas have adopted risk management as their patching material, the application of risk management in IT outsourcing was not quite accomplished. Risk management should be conducted in IT outsourcing as it will foresee risks that might disturb the smooth flowing of IT outsourcing and prevent or reduce the impact of risks if they occur.