Outsourced IT Projects from the Vendor Perspective: Different Goals, Different Risks

Abstract

As outsourced and multinational IT projects become more common, managing risks for these projects is increasingly important. The research reported here examines key risks identified by Hong Kong vendor project managers working on both local and international package implementation projects. In addition to the typical risks that threaten project outcome success, respondents noted location-specific risks on their multinational projects. They also distinguished threats to the satisfactory process of the project, and threats to their own firms from competitors and from potential damage to their reputation arising from customer dissatisfaction with either the outcomes or the process of the project. Using an agency theory perspective, this broader focus is examined in the light of differing definitions of project success for clients and outsource providers.