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Original scientific paper

https://doi.org/10.2498/cit.1001816

Risk Effect on Offshore Systems Development Project Cost

Gerald DeHondt II ; Grand Valley State University
George Nezlek ; Grand Valley State University


Full text: english pdf 172 Kb

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Abstract

Organizations frequently consider offshore systems development in the belief that projects can be completed for lower cost.  While prices quoted by offshore vendors are often very appealing when compared with domestic vendors, additional risks must be considered when looking into offshore systems development.  These risks typically take the form of intangible and indirect project costs which add to the total cost of the delivered system.  This paper describes and classifies these risks, which fall into three primary categories of security risks, legal risks, and general risks.  Suggestions for incorporating these intangible and indirect costs into the decision making process, and their effects on total project costs, are offered for the offshore v. domestic vendor selection process.

Keywords

Offshore Outsourcing; Risk; Systems Development

Hrčak ID:

59532

URI

https://hrcak.srce.hr/59532

Publication date:

30.6.2010.

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