Risk Management I.T Outsourcing Projects

Risk Management in I.T Outsourcing Projects in Pakistan

Muhammad Nauman Rashid

Department of Computer Science, Government College University Faisalabad, Pakistan

         Abstract:          {fo          

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nt:times}In          today's global economy, outsourcing has become a very common          phenomenon. Many large organizations have outsourced some or all of          their IT functions. Factors such as lower costs, improved          productivity, improved quality, increased customer satisfaction,          time to market and ability to focus on core areas are some of the          benefits of outsourcing. However, there are many challenges and          risks associated with outsourcing. Aspects behind outsourcing are          Cost and Efficiency Savings, Develop Internal Staff, Continuity &          Risk Management, Focus On Core Activities, Reduced Overhead,          Operational Control, Staffing Flexibility the study is attributed to          remove some involved risk factors i.e., Possibility of week          management, Inexperience staff, Business uncertainty, Outdated          technology, Hidden cost, Endemic certainty, Lack of organization          learning, Loose of innovative capacity, Danger of an eternal          triangle, Technology invisibility. While keeping in mind study will          evaluated all given parameters in this context both by qualitatively          and quantitatively and produce a safe standard model for          multidimensional organizations. Thesis          investigates the important steps of the decision-making and risk          management outsourcing. Due to the complexity of the decision-making          process, especially in the outsourcing companies do not achieve          their expected goals. The main objective of this thesis is,          therefore, necessary to explain this type of outsourcing          decision-making and risk management steps of the main problems          associated with factors to make a decision, and she has two main          exposures. As a secondary source of information, books and from          previous research on this topic in order to give a better          understanding of some of the documents used in the thesis topic.          Gather relevant empirical data, a questionnaire was sent to a number          of Pakistani companies. Report thesis, effective IT outsourcing is a          decision and a clear view of the problem, and shows the impact of          the need to take him to a decision.
         Keywords:          Risk          Management, Pakistan, Analysis of Decision to outsource, Selection          of Service Provider, Contract Management, On-Going Monitoring. IT          Outsourcing.
         INTRODUCTION
         Objective          of this study is to propose a frame work or model for in IT out          sourcing projects for the organizations how outsource their I.T          project partially or fully from other organizations. Risk management          is a crucial part of any project that is going to be started if you          cannot manage the risk timely the ultimately hinders the project and          pave it to the failure. Risk is generally defined as the possibility          of loss or injury. Project risk management is generally concerned          with the (1) Risk Identification (2) Risk response plan(3) Risk          monitoring and control (4) Prioritization of risks (5) Risk Analysis          (Qualitative & Quantitative) [4] and proposed the knowledge          management infrastructure will help in improving the implementation          of project risk management. Project risk management is the          systematic and responding to project risks and the knowledge based          framework provides the ability for the pattern analysis and the          knowledge reuse for the previous projects. The proposed paradigm          will facilitate in reducing the human involvement in project risk          management and less experienced project managers may benefit from          this proposed elucidation. The objective of risk management in I.T          outsourcing for software is to identify, address and eliminate risks          before undesirable outcome occur. It minimize the chance of project          failure keeping view of different factors such as delay of delivery          the product and cost increase etc. The basic purpose of knowledge          management is to enable an organization to leverage the knowledge          and in turn improve productivity. Outsourcing is a stage background;          the reader is given an overview of the importance and outsourcing          decisions. Explains all the steps related to the theoretical part of          the outsourcing decision. Outsourcing and what problems they face by          outsourcing this section also explains why the decision. Swedish          companies and outsourcing-related information on the Pakistanis have          been used for the questionnaire process. In the early 2000s,          outsourcing, researchers, scholars had great importance. Companies          that do not have internal IT technology and the whole experience can          be outsourced their IT function they also reduce costs and focus,          regardless of their core activities and are outsourcing some of          their activities. Companies are not large enough IT knowledge and          experiences. Therefore, these companies adopted outsourcing as a          solution for the development and maintenance of IT applications. The          method companies in the capacity, flexibility and cost reduction in          order to achieve short and long term perspective, the outsourcing of          use. However, many companies do not benefit from outsourcing. The          decision is difficult for any organization and management of          outsourced IT services. IT outsourcing could be considered because          they are not delivering the expected value of the projects,          according to a new report from research firm Gartner, half failed.          Outsourcing is a difficult decision. The most important steps to          successful outsourcing suppliers provisioning option, you need to          know. Outsourcing provides an overview of the most important steps          in this thesis. Because of the globalization of the business world          it has become increasingly competitive in recent decades. Almost all          companies are not only competing with other companies in the same          region anymore, but also with companies around the world. In          addition, the customer demands to be provided with more diversified          and customized products and live time product decreases as a result          of rapidly developing technology. To respond to these changes,          academics suggest companies to determine their core competencies and          concentrate on them, "top executives were judged on their ability          to restructure, deciliter, and retarder their corporations.          Depending on the type of area, there are different kinds of          possibilities to resolve this issue and one often used is          outsourcing, which will be the main topic of this thesis. It is          defined as change operation of a transaction previously governed          internally to an external provider through a long-term contract,          which involves the transfer to the supplier." The main idea          behind this is to let a non-core area done by an outside vendor, who          has specialized in this. Therefore, in theory, it is carried out          better the area, for example, lower costs or with higher quality. A          common example for the outsourcing process is the transport of goods          usually carried out by freight companies " therefore, the term          of outsourcing was first used in the 19s by manufacturing          executives; However, it was certainly can use the concept of          outsourcing long before. However, outsourcing did not become          prominent until the 2000s, when companies were searching for a          solution to overcome a severe resection the US economy was facing.4          Today, it is a tool often used for businesses. In describing the          advantages of outsourcing in the background chapter, outsourcing          sounds promising for each company.
         In          fact, a 2001 survey, asking managers 1000, revealed that only 5% of          them believe that outsourcing has given the high profits they          expected the causes of the problems have to be determined, resulting          from changes due to outsourcing. The theory provides us with a wide          variety of sources for this topic, but this Bachelor Thesis focuses          only on changes in the planning environment due to outsourcing and          the resulting effects for the planning method. The reason for this          is that only a thorough and detailed analysis of a specified area          leads to gain additional knowledge. Moreover, as there are several          types of outsourcing, it is reasonable to limit to race this project          to a specific one, as the resulting effects on the environment          planning are very different, when you outsource a single component          or a whole part of the production. This thesis will deal with the          outsourcing of production of a module that is deployed on each end          product of the company. The main driver of this outsourcing is to          reduce costs. Moreover, the focus is only set in a manufacturing          company, regardless of its suppliers and its customers. Knowledge          has been identified as a vital source for innovative companies a          competitive advantage and value creation. It's like a key to the          development of basic skills dynamic ingredient and, in general, as a          determinant for companies with global ambitions factor to meet the          challenges. Companies are now required to organize projects and          structures. Many of them rely on their own resources or external to          fulfill their objectives and be better prepared for the changes in          their environment resources. Moreover, companies face risks every          day several types due to changes in the global environment that          could introduce new risks. The source of risks differs from internal          or external environment. Environmental uncertainty and behaviors          that influence on problems in monitoring the results of cooperation          on the level and investment risk. If this risky environment is not          properly managed, it could have a negative impact on business today          and tomorrow. For this reason, administrators need to consider the          risks that can affect and have to minimize their impact on the          organization. One of the essential functions of governance          information technology (IT) is risk management, which aims to          provide a safe environment for e-commerce and IT projects are          characterized by a high degree of risk. The rapid transformation in          information technology combines changes in business processes to          create amazing changes in cost, cost-benefit ratio, and the          feasibility of doing specific things in a certain way. In support of          various IT organizations, concerned with standards they have          published different methods of risk management. These methods have          been partially or fully adopted by the companies use IT to identify,          analyze, and minimize risks to their IT activities. The risks facing          IT projects are not essentially financial risks. By understanding          these fundamental problems in real terms, rather than through its          financial impact, project managers, IT can move more quickly to          resolve problems before they become major problems that jeopardize          the project objectives. Most IT professionals understand that there          is different financial risk of the project risks. risk IT projects,          consists of financial resources, technology, security, information,          people, business processes, management, external, and even the risk          of success (which occurs when the project is so well done that          attracts more transactions expected and not to scale requirements          overload).
         REVIEW                    OF LITERATURE
                   Outsourcing          is becoming a trend nowadays. Pakistan also took this opportunity          and embraces IT outsourcing. As a result, Pakistan as well, India          and China are the most attractive destination for outsourcing is in          place. Despite the growing number of companies involved in          outsourcing, it should be noted that outsourcing is not a panacea.          It comes with risks. Losses, uncontrolled failure can lead to          outsourcing. Although it has been adopted in other parts of the          material risk management, outsourcing risk management application is          very accomplished. Risk Management Outsourcing may interfere with          the smooth flow and to prevent or reduce the impact of losses if          they occur, to foresee the risks, outsourcing should be carried out.          It should be carried out at an early stage and should be performed          regularly until the end of the outsourcing life cycle. Outsourcing          risk management process framework, as well as the outsourcing of          risk management to be carried out at each stage of the lifecycle          will cover the principle. Outsourcing computing is everywhere in the          world. The rapid development of this sector with great potential for          development and the potential for increased productivity Rapid          technological change has been accompanied by many changes in the way          it looks and is managed by institutions. Reflects the trend towards          outsourcing of the group of experts believe that the maturity of the          computer world. The main outsourcing companies to focus on their          core competencies and to find out other functions seen as          advantageous. The most common processes outsourced IT outsourcing,          software, system hosting and system management are the expansion.          For decades, many companies are outsourcing their business using IT          outsourcing strategy for all the servers, software upgrades and          network, etc. for a specific application, which operates as a third          party. However, the system management support, implementation, and          technology infrastructure, business development progress of banking          and insurance software development, system management, basic          household systems and hosting services have adopted the systems used          by most of the information technology outsourcing policy.          Economically, it is estimated that due to the immediate reaction to          the whole or part of the security will be useful for a company that          wants to outsource. Highly tested security assessments are performed          periodically, to staff cuts, the costs of personnel to carry          throughout the year or just a section, allocate resources elsewhere.          Thinking about outsourcing, but also the information technology          requirements of modern organizations outsources functions,          respectively Evolution (IT) should be considered. The reason for          that; In recent years, many companies have adopted information          technology outsourcing. Special application of information          technology outsourcing and related servers, networks and software as          a third party to manage the contractor to perform upgrades. They          have all of their information technology outsourcing, global          sourcing jobs in the outsourcing market stands out from the rest by          taking almost 28% are outsourcing. Instead of performing the          function of a company is a service company that hires an IT function          that occurs when the IT outsourcing. "" It will define          outsourcing "Turn It provides services for a long time, it is a          third-party provider, a company decision or companies outsourcing IT          assets, people, and / or selling operations" from one company          to another, "Information systems and information technology          services or business processes, which is to transfer outsourcing is          defined as the transfer of a function / TI is already home to a          third party provider.          
         Outsourcing          is the definition of a student, after analyzing the various ranges          of "third-party organization IT for a specific time to make a          deal when providing services. The term "Outsourcing" is the          process of shifting or externalizing tasks and services previously          performed in-house to outside vendors (Beaumont and Sohal 2004 cited          in Beaumont 2006). In its strongest form it means, passing ownership          and control of functions previously performed in-house to an outside          contractor (Beaumont and Sohal 2004 cited in Goonetilleke 2012).          "Outsource" is also known as "external source". It is a          management approach that allows delegates to an external agent the          operational responsibility for processes or services previously          delivered by an activity. It can be defined as "the purchase of a          good or a service". The two main actors of outsourcing processes          are the "outsourcee" and the "outsourcer". The "customer",          outsources his/her requirements, while the second, the enterprise,          delivers outsourced services (similar to the terms supplier or          vendor) (Franceschini et al, 2003 cited in Goonetilleke 2012, p.          13). "Outsourcing refers to the use of an external provider of          goods or services instead of having recourse to internal resources          to provide the same goods or services" (radu and Ramona, 2010,          p.80)."In the IT world, outsourcing means turning over a firm's          computer operation, network operations, or other IT functions to a          provider for a specified time" (McNurlin and Sprague, 2006, p.8).          It reflects the use of external agents to perform one or more          organizational activity (Kehal and Singh, 2006), and it is not          specific to IS. As a result, numerous definitions for the term          "outsourcing" have been stated in the past. However, outsourcing          in its most basic form was conceived as, contracting out the          procuring of service or products from an outside supplier or          manufacturer rather than having them provided by in-house facilities          (Aubert et al. 2008).
         Correspondingly,          precise definitions of IS outsourcing differs in the literature;          traditionally it referred to the conditions under which the          organization's data were processed at an external computer service          bureau (Fink 2004 cited in Gulla and Gupta 2009) Now, however, it          can mean much more and the current state of outsourcing is vastly          different from its traditional forms. Factor (2001), has given a          good overview between traditional (legacy) and modern IS outsourcing          paradigms. Figure 2.1 is shown
                   
         
         However,          though there are small different aspects considered in all the          definitions, there seems to be a general agreement about outsourcing          is a process of carrying out of IT functions by third parties To          list a few of them: Information systems outsourcing, or IS          outsourcing, is the practice of turning over part or all of an          organization's IS functions to external service providers (Grover          and Cheon 2006 cited in Li and Li 2009, p. 3) "Information System          (IS) Outsourcing means that the physical and/or human resources          related to one organization's Information Technologies (ITs) are          supplied and/or administered by an external specialized provider"          (Enrique et al, 2002, p. 3). "Information system (IS) or          information technology (IT) outsourcing can be defined as the          transferring of an IS/IT function that was previously carried          inhouse, to a third party provider" (Mulat, 2007, p. 24). In          addition to these definitions of outsourcing, many authors also          describe various outsourcing arrangements or options. For example,          based on how many clients and vendors are involved in the          outsourcing relationship, Gallivan and Oh (2009) identified four          classes of outsourcing relationships, which is summarized in the          following table 1;
         
         Other          authors have also categorized the variety of outsourcing contact          options.
         Pandey          and Bansal (2003) used the following taxonomy to capture the range          of outsourcing contact options:
         (a)           In-sourcing- organizations use their own IT department to take the          responsibility.
         (b)                    Value-added outsourcing- the organizations enter into a close and          strategic alliance with the          
          supplier.
         (c)                    Short-term outsourcing- the activity is outsourced for a short          period
         (d)           Long-term outsourcing- the activity is outsourced to a vendor for a          long period of time.
                   
         MATERIALS                    AND METHODS
          The          risks facing IT projects are, in essence, financial risks. The          financial measures are only indicators of underlying problems. By          understanding these underlying problems in real terms, rather than          through its financial impact, project managers, IT can move more          quickly to resolve problems before they become major problems that          jeopardize the project objectives. Most IT professionals understand          that there is different financial risk of the project risks. risk of          IT projects is divided into nine categories, including financial          risk, technological risk, security risk, information risk, the risk          of people, the risk of business processes, risk management, external          risk, and even the risk of success (which occurs when the project is          so well done that attracts more transactions than expected and          cannot scale requirements overload . anecdotes, surveys and field          research established that many IT projects fail. managers leave some          of these systems fail. Other projects are over budget or delay          ultimately result in useful systems Such as building construction          projects and states that the main causes of failure of IT projects          are the use of technologies rapidly changing, its long development          times in general and volatility user expectations about what will          produce the project. Because projects generally include all these          features, which are likely to fail, cost overruns and schedule          delays Organizations need to keep IT projects on time and costs          under control. However, organizations should also encourage managers          to respond to changing business needs and take advantage of          technological opportunities before their competitors do As for IT          projects, risks may vary, if it is a software development project,          project safety, outsourcing project or task specific programming. IT          projects are known for their high failure rate. They were carried          out from in-depth interviews with IT professionals from leading          organizations in Western Australia to determine how IT risks are          managed in their projects. Respondents ranked 27 IT risks in terms          of likelihood and consequences of identifying the most important          risks. The five major risks, in order, are: lack of staff; project          schedule and reasonable budget; Unrealistic expectations; incomplete          requirements; and the window of opportunity decreased due to the          delay in delivering software. Moreover, respondents mostly apply the          treatment strategy of risk reduction to manage these risks. In          addition, these strategies are primarily project management          processes, rather than technical processes. Therefore, this shows          that project management is an RM strategy. In particular,          management's expectations of stakeholders are a specific risk          treatment that helps manage several key IT risks. Risk issues          referring to the software development process are not seen as          essential object of discussion. On the other hand, most          organizations expect to successfully implement systems while taking          their regular business processes.          
          Research          Questions and Research Objective
         The          research questions in this study are:
          What                    are the factors that influence organization to outsource I.T                    Projects?
                    What                    type of risk organization faces during outsources and what you are                    trying to solve?
                    What                    % of the work organization outsource?
                    What                    methodologies used by organization to take decision to outsource                    I.T projects?
                    What                    methodologies used to manage the risks existing solution?
                    What                    is the limitation of existing solutions?
         The          aim of the study is to investigate project risk management as an          amalgam with the knowledge management from a very practical          viewpoint with respect to the software project industry. It also          explores that to what extent the software project based          organizations are aware about knowledge management utilization,          focusing on how KM initiators foresee the implementation process and          derive the benefits about of it. The report will focus on          investigation of the scope of effective implementation of a KM          approach in the project risk management.
         To          be able to answer the research question, several objectives need to          be fulfilled. The objective of the study is to:
         
          Identify                    the distinctive characteristics of Software Project Management                    Risks processes, approaches and assisting tools and techniques
                    Exploration                    of risk knowledge from past projects be extracted from archives
                    The                    study will aim at providing assistance to the user in deciding the                    appropriate content to
          re-use
          Focusing                    on accommodating the evolution of risk information and outcomes                    over the software project life cycle by the KM content.
         
         Identify          the implications and benefits of implementing a knowledge based risk          management process concurrent to the implementation of the core          project management processes.
          Problem          statement
                   Currently in the          field of I.T outsourcing, we have not found any solution focusing on          the risk management software project based organizations in          Pakistan. We have found solutions from the varying domains of the          risk management and multiple knowledge areas have been focused with          respect to the knowledge domain. But our concentration will be          mainly on the aspects of KM as a complete solution for the risk          management ranging from the risk identification to the qualitative          and quantitative risk mitigation for the software project based          organizations. Project risk management is the systematic and          iterative process of identifying, analyzing, and responding to          project risks and the knowledge based framework provides the ability          for the pattern analysis and the knowledge reuse for the previous          projects. The proposed paradigm will facilitate in reducing the          human involvement in project risk management and less experienced          project managers may benefit from this proposed elucidation.          
         The          objective of KM for project risk management is to identify, address          and eliminate risks before undesirable outcome occur. It protects          intellectual assets from decay, seeks opportunities to enhance          decisions, services and products through adding intelligence,          increasing value and providing flexibility.
                   
         RESULTS                    AND DISCUSSION
          The          research involved ten organizations to measure their risk management          practices. The designation of the respondents are Project Director,          Principle Assistant Director, IT Manager, three System Analysts and          four IT/IS officers. From ten of the organizations, five involve in          services, three in health care, one in human resources and another          one is a law enforcer. Six organizations outsourced their          application system development functions, two organizations          outsourced their ICT application maintenance, one organization          outsourced its ICT infrastructure and one organization outsourced          its strategic planning.          
         
         All          government agencies agreed that the reason they outsourced a          particular function is the resources and expertise are not available          in-house. Surprisingly, cost reduction is not the main reason to          outsource a function in government agencies. This might support the          research where cost reduction is a goal of traditional outsourcing          and therefore might not be appropriate in current environment.
         Other          reasons to outsource include focusing on core business, to improve          productivity, to achieve higher quality, to achieve higher customer          satisfaction and government support. From the ten organizations          surveyed, only one organization involved the use of multi-vendor to          complete the task. Six out of ten organizations focused on selective          outsourcing. Selective outsourcing is the decision to outsource          selected IT functions to service providers the rest of the          organization Factors practice in Analysis of Decision to Outsource          Alpha performed total outsourcing.          
         Six          of the organizations set up strategic partnership type of          relationship. The rest of the agencies set up buyer/seller          relationship arrangement. All organizations sign fee-for-service          contract. Fee-for-service contract is divided into four types,          namely standards, detail, loose and mixed. From the four types of          contract, seven organizations signed detailed contract while the          rest Factors practice in Selection of Service Provider 10 0.874          Phases practice in Contract Management 12 0.647 variables are          consistent and reliable. Details of the reliability analysis are as          tabulated in Table 6. Based on the data gathered from the          questionnaire          
         The          questionnaire was sent to five companies in Pakistan. Two Pakistani          companies replied. Out of these 5 companies two Pakistani resorts to          IT outsourcing. However, the process of gathering information from          businesses is a difficult task because many companies have the          ability to share data has proven to be a violation of privacy.          
         Brief          summary of Pakistani responsive companies:          
         Pakistan          Petroleum Limited:          
         Pakistan          Petrolem Limited (PPL) is a leading Exploration and Production (E&P)          Oil Company in Pakistan. Its activities in this field dates back to          the 1950s, half a century Pakistan Petroleum Limited (PPL) at its          inception in 1952, the Burma Shell Pakistan Petroleum Limited (PPL)          formed an exploration and production company with became. Currently,          all areas of the country, the company have 15 exploration licenses.          Beyond the limits of its expanding their horizons by getting          involved in the oil business Pakistan has become synonymous with Gas          Company in Pakistan, namely Sui, owning the biggest gas field. PPL          is a leader in the browser and oil and gas producer in the country.          Moreover, it is beyond the country's borders to exploit oil and gas          resources are intended to have a major paradigm shift.
                   
                   Mari Gas Company          Limited:          
         Mari          Gas Company Limited (MGCL) is an Exploration and Production Company          that started its business in 1960. Currently MGCL is a leading          exploration company in Pakistan. The company's oil and gas          production in the country Mari Gas Company exploration and          production company, and is actively involved in the exploitation of          natural resources Pakistan properly. MGCL the domestic sector is one          of the most important institutions. Currently, the company provides          15% of the total production of hydrocarbons in the country.                    Pakistan          Petroleum Limited (PPL) IT outsourcing
         Pakistan          Petroleum Limited is outsourcing IT activities for last 5 years. IT          outsourcing of software development and computer systems management          is the main activities of the PPL. The main reasons for outsourcing          decisions, access to new technologies and to focus on its core          business, the company has started.
         In          PPL, led by senior management in the department who are responsible          for the decision of outsourcing is part of a committee. In case of          any emergency, an outsourcing decision, to speed up the process and          will be completed within a month, it may take as long as two months.          The primary criteria for selecting IT service provider first,          selective competent vendors are invited to the auction, will be          called. Once the auction is reached, and then performs the technical          and economic evaluation. The right provider can be selected on the          basis of technical capacity and financial stability.
         PPL          is the main problem, which is lack of access to suppliers the          ability to face, so often carried in the cost of the project, which          in turn makes it difficult for a company making healthy competition          among the vendors out there will again be a minimum number of          vendors. PPL outsourcing success rate is 75%. PPL to reduce labor          costs in the future and to help increase the efficiency of IT          outsourcing
                   
         Mari          Gas Company Limited (MGCL) IT outsourcing
          Mari          Gas Company Limited (MGCL) is a leading exploration company of          Pakistan. MGCL involved in outsourcing for the past three to five          years. MGCL IT test systems and IT system management outsourcing          service providers are the main activities. The main reason for          outsourcing to focus on its core business and enable the company to          gain access to new technology
         Senior          management, especially the CEO's are making outsourcing decisions.          Decisions typically require two or three weeks. Mari Gas Company          Limited of some IT services outsources. Therefore, the supplier is          determined according to the nature of the problem at hand. The main          problem faced by the outsourcing LQAS from a selection of the lack          of competition in the market for a job. When required the company to          provide IT services MGCL faces the problem of finding skilled          providers. The success rate is similar to PPL of MGCL. MGCL of          outsourcing success rate is at 75%.
          MGCL          IT outsourcing allows you to increase capacity in the future.                    Analysis          of empirical data with theoretical data          
         The          decision of the Pakistani companies outsourcing companies obtained          evidence that exposure to different reasons. These companies, which          leads to the assumption that this is the main reason for us          mentioning the decision to focus on the core business of the company          The theoretical data, the research team Robin Sood, Lynda M.          Applegate and Elizabeth Sparrow benefits, including reducing costs          as the main reason for outsourcing, said that in order to show the          economic costs of capital and the cost of labor. Elizabeth Sparrow          and Robin Sood mention focus on the core business of the company are          responsible for the researchers (Brown, Douglas, Wilson, Scott and          Sparrow), the third group, the research team has stated that the          main reason for outsourcing is to gain access to technical          expertise.          
                   
         There          are different types of outsourcing risks. According to the results          of the data collection experience, the main risk facing the          outsourcing companies that meet the needs of all in finding skilled          providers. Provide a description of the risks to the subject of          various studies. Especially Elizabeth Sparrow (research group 1),          the most important are the risks of security and privacy. Group 2          consists of research and lack of experience in outsourcing Warren          Axelrod and stated that the major threat to the bears. Research          group 3 (Annette Brannemo, Johan Falk and Jonas Hagman) is the main          threat of loss of control that must be taken into account.          
         
         CONCLUSION                    AND FUTURE WORK
         
         
         Future          Research
          The          results of this study are the specific implications for future          research. After purification, the questionnaire distributed to          gather information on the risk management practices of outsourcing.          The results of this study can be used to manage the risks to the          development of the framework of IT outsourcing. In this framework to          help organizations manage projects and outsourcing reduce the risks          of outsourcing, which increases the likelihood of success.
         Conclusion                    
          The          art of delegating functions to third parties; it is becoming a trend          in many organizations. Insider participation in the project will          invite more risks. These risks are likely to affect the company as          compared to the service provider. The project will be the likelihood          of success, so, companies should be able to handle the risk.          Research on the effectiveness of risk management should be to          increase the success of outsourcing. Therefore, this work examines          the practices of risk management, IT outsourcing project filled in          the gap and can be used to manage the risk of outsourcing projects          to suggest a conceptual framework. A survey was conducted to          validate the conceptual framework. The survey results did not follow          the stages of risk management as companies close to the late          delivery, cost overruns; the quality is not up to the expectation          and has to face many problems. Consequently, five out of ten          respondents in the cases of termination of the contract before the          completion of the project until the termination clause of the          project is completed. Close to the risk management committee and          risk management practice began with the creation of three companies,          the successful completion of the outsourcing. Risk management          practices to remain low due to the lack of knowledge and skills.          However, attempts to identify a risk management practice. From the          findings, it is the most successful IT outsourcing risks can be          controlled and mitigated by the practice of risk management and as a          place to run. Therefore, in the case of outsourcing of risk          management to help organizations in managing the risks of          outsourcing projects will be developed.          
         
         

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