RISKS INVOLVED IN ONSHORE OUTSOURCING OF IT

PROJECTS



A DISSERTATION REPORT

SUBMITTED BY




VAISHNAVEE GONNADE

A31501912025



UNDER THE GUIDANCE OF
Prof. Pallavi Deshpande



in partial fulfillment of the requirements of Amity University
for the award of the degree of
Master of Business Administration


Through
AMITY GLOBAL BUSINESS SCHOOL
PUNE

2012-14








CERTIFICATE

This is to certify that the project work titled

RISKS INVOLVED IN ONSHORE OUTSOURCING OF IT PROJECTS

is a bonafide work done by
Ms. Vaishnavee S. Gonnade
A31501912025
for the award of degree of
Master of Business Administration






Dr.
----------------------------
(Col.)S.V.Sharma

----------------------------
Prof. Pallavi
Deshpande
Director AGBS - Pune Faculty Guide










Acknowledgement
A Dissertation report is an extremely important part of Management curriculum. It is not
possible to learn management without research work. As a student of Management
course, I would like to present this Project report for Amity Global Business School,
Pune.

I would like to express my special thanks of gratitude to my faculty guide Prof.
Pallavi Deshpande who gave me the golden opportunity to do this wonderful project on
the topic RISKS INVOLVED IN ONSHORE OUTSOURCING OF IT PROJECTS,
which also helped me in doing a lot of Research and I came to know about so many new
things I am really thankful to them.

I would also like to thank my parents for blessings and friends who helped me a lot in
finalizing this project within the limited time frame and without them this would not be
possible.

Ms. Vaishnavee S. Gonnade
A31501912025










TABLE OF CONTENT
CHAPTER
NO.
TOPIC PAGE NO.
1
INTRODUCTION
1
1.1
Introduction
1
1.2
Aim of the study
2
1.3
Objectives
3
1.4
Scope of the study
3
1.5
Summary of chapters
3
2
LITERATURE REVIEW
4
2.1
Introduction
4
2.2
Early days of IT outsourcing
4
2.3
The advent of big time IT outsourcing
5
2.4
Sourcing practices
7
2.5
Types of outsourcing
7
2.6
The IT outsourcing process
9
2.7
Why IT outsourcing
11
2.8
Risks of IT outsourcing
12
2.9
Risk management and IT governance in outsourcing
12
3
RESEARCH METHODOLOGY
16
4
RESEARCH FINDINGS
18
4.1
Introduction
18
4.2
Interview 1
18
4.3
Interview 2
20
5
DISCUSSIONS
23
5.1
How to mitigate IT outsourcing risks
23
5.2
Analysis of the IT risk in the SLAs
24
6
CONCLUSION AND RECOMMENDATIONS
26
6.1
Conclusion/Summary
26
6.2
Recommendations
27
6.3
Remarks for further research
28
7
REFERENCES
29
8
APPENDIX
30

List of abbreviations
BCS British Computer Society
IT Information Technology
ITO Information technology outsourcing
ISO International organization for
standardization
ITIL Information technology infrastructure
library
ISACA Information systems and audit control
association
SLA Service level agreement
SMEs Small and medium scale enterprises
OMMM Outsourcing management maturity model
RMO Relationship management office
MTTR Mean time to repair
MTBF Mean time between failures
TAT Turn around time
TAMS Terminal application management
software
XYZ The recipient company (case study)
XXX The service providers (vendors)
PC Personal computers