RISKS INVOLVED IN ONSHORE OUTSOURCING OF IT PROJECTS

A DISSERTATION REPORT

SUBMITTED BY

VAISHNAVEE GONNADE

A31501912025

UNDER THE GUIDANCE OFProf. Pallavi Deshpande

in partial fulfillment of the requirements of Amity University for the award of the degree of

Master of Business Administration

ThroughAMITY 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 byMs. Vaishnavee S. Gonnade

A31501912025for 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. GonnadeA31501912025

TABLE OF CONTENT

CHAPTER NO.

TOPIC PAGE NO.

1 INTRODUCTION 11.1 Introduction 11.2 Aim of the study 21.3 Objectives 31.4 Scope of the study 31.5 Summary of chapters 3

2 LITERATURE REVIEW 42.1 Introduction 42.2 Early days of IT outsourcing 42.3 The advent of big time IT outsourcing 52.4 Sourcing practices 72.5 Types of outsourcing 72.6 The IT outsourcing process 92.7 Why IT outsourcing 112.8 Risks of IT outsourcing 122.9 Risk management and IT governance in outsourcing 12

3 RESEARCH METHODOLOGY 164 RESEARCH FINDINGS 18

4.1 Introduction 184.2 Interview 1 184.3 Interview 2 20

5 DISCUSSIONS 235.1 How to mitigate IT outsourcing risks 235.2 Analysis of the IT risk in the SLAs 24

6 CONCLUSION AND RECOMMENDATIONS 266.1 Conclusion/Summary 266.2 Recommendations 276.3 Remarks for further research 28

7 REFERENCES 298 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