Case Study on Business Risk Management for Software Outsourcing Service Provider with ISM

Jiangping Wan, Dan Wan, Hui Zhang

.

DOI: 10.4236/ti.2010.14033                

Abstract

This paper identifies the risks of CN Group which is working at software outsourcing projects between HongKong and Guangdong, discovers the causal relationships among the risk factors, and constructs corresponding risk structure model with Interpretive Structural Modeling. Five original risk factors are identified, including contracts risk, requirements definition and change, lack of communication, political and legal environment differences, and exchange rate fluctuations. Finally, a risk management model of CN Group is put forward and three advices are proposed for software outsourcing business operation: project planning, project requirements, and communication.

Keywords

Software Outsourcing, Project Management, Risk Factor, Interpretive Structural Modeling, Empirical Analysis

Conflicts of Interest

The authors declare no conflicts of interest.

References

[1]	Y. Qin, W. J. Li and C .D. Pan, “The Development of Services Outsourcing in Multinational Companies and China’s Countermeasures,” Science and Technology Progress and Policy, Vol. 23, No. 4, April 2006, pp. 131-132.
[2]	R. Kliem, “Managing the Risks of Offshore IT Development Project,” Information Systems Management, Vol. 21, No. 3, March 2004, pp. 21-27.
[3]	M. Z. Mao and X. W. Ge, “Analysis and Research on Risk and Management,” Science and Technology Management Research, Vol. 24, No. 6, June 2005, pp. 148-151.
[4]	B.W Boehm, “Software Risk Management: Principles and Practices,” IEEE Software, Vol. 8, No. 1, August 1991, pp. 32-41.
[5]	V. Scoy and L. Roger, “Software Development Risk: Opportunity, Not Problem,” Technical Report, CMU/ SEI-92-TR-30, September 1992.
[6]	J. Kontio, “Risk Management in Software Development: A Technology Overview and the Riskit Method,” The Proceedings of ICSE, Los Angles CA, May 1999, pp. 679-680.
[7]	A. A. Keshlaf and K. Hashim, “A Model and Prototype Tool to Manage Software Risks,” Proceedings of the First Asia–Pacific Conference on Quality Software, October 2000, pp. 297- 305.
[8]	IEEE Std, “IEEE Standard for Software Life Cycle Processes- Risk Management,” Vol. 1504, 2001, pp. 1-24.
[9]	CMMI Product Team, “Capability Maturity Model Integration V1. 1 for Software Engineering,” CMU/ SEI, August 2002.
[10]	J. N. Warfield, “The Mathematics of Structure,” AJAR, Publishing Company, 2003.