Case Study on Business Risk Management for Software Outsourcing Service Provider with ISM

Abstract

This paper identifies the risks of CN Group which is working at software outsourcing projects between HongKong and Guangdong, discovers the causal relationships among the risk factors, and constructs corresponding risk structure model with Interpretive Structural Modeling. Five original risk factors are identified, including contracts risk, requirements definition and change, lack of communication, political and legal environment differences, and exchange rate fluctuations. Finally, a risk management model of CN Group is put forward and three advices are proposed for software outsourcing business operation: project planning, project requirements, and communication.

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