The bad news is that unidentified or non-adequately treated risks during any phase of an IT outsurcing project may be materialized in a later phase with aggravated effects as a consequence of the accumulated effect observed jointly with the materialization of another risk inherent to this later phase. Such aggravation may occur as an increase of its probability of occurrence and/or an increase of the resulting impact of its materialization on costs or schedule of the project.

1. Alfredo Saad
IT Sourcing Consultant
29/06/2015
https://br.linkedin.com/in/alfredosaad

2. https://br.linkedin.com/in/alfredosaad
 Inherent and … conflicting projects attributes
 Risks: identification and proactive treatment
 Phases of and IT outsourcing project
 Cumulative characteristics of potential impacts
 Risk exposure: success x failure

3. https://br.linkedin.com/in/alfredosaad
 Two conflicting, although inseparable,
characteristics occur in any project:
◦ the materialization of an improvement opportunity and
◦ the unavoidable risks inherent to its attainment.

4. https://br.linkedin.com/in/alfredosaad
 Also in an IT outsourcing project, the
achievement of benefits strongly depends on
the way their risks are managed.
 Moreover, the capability to proactively
identify and treat them is vital to minimize
the risk exposure of the organization.
 The greater or smaller degree of urgency
adopted to identify and treat them along all
phases of the project determines its success
or failure.

5. https://br.linkedin.com/in/alfredosaad
 Let us consider the phases of an IT
outsourcing project in an organization:
◦ Decision taking
◦ Provider selection
◦ Contract negotiation
◦ Services transition
◦ Contract governance
◦ Contract closure
 Each of these phases has risks inherent to its
own nature.

6. https://br.linkedin.com/in/alfredosaad
 The bad news is that unidentified or non-
adequately treated risks during any phase
may be materialized in a later phase with
aggravated effects as a consequence of the
accumulated effect observed jointly with the
materialization of another risk inherent to
this later phase.
 Such aggravation may occur as an increase of
its probability of occurrence and/or an
increase of the resulting impact of its
materialization on costs or schedule of the
project.

7. https://br.linkedin.com/in/alfredosaad
 Conceptually, the resulting cumulative effect over the
project risk exposure may be seen on the figure below.
It shows both cases:
◦ An unacceptably high project risk exposure, as a
consequence of the cumulative negative effects observed
when an inadequate risk management discipline is
implemented
◦ A practically negligible project risk exposure which is
achieved in the opposite scenario
 Both paths, radically opposed, distinguish the routes to
project failure or to project success.

8. https://br.linkedin.com/in/alfredosaad

9. https://br.linkedin.com/in/alfredosaad
 In future presentations we will identify and discuss the
risks inherent to each phase of an IT outsourcing
project, in both cases:
◦ A “traditional” outsourcing project
◦ An outsourcing project based on the adoption of a cloud
computing alternative
 Complementary approaches of this theme were already
discussed on previous SlideShare presentations
◦ “Cloud x Traditional Outsourcing: (Dis)similarities in Risk
Management”
◦ “IT Outsourcing Contracts: Heaven or Hell? You Choose”