Analysis of risk dynamics in information technology service delivery

Abstract

Purpose The purpose of this paper is to define and analyse risks within information technologies (IT) in service delivery. Some specific risks that appear in IT service delivery and the relationships between risks will be defined. The objective of the study is to advance understanding of risks and their effects on specific processes within the delivery of IT services. Design/methodology/approach Risks were determined by reviewing processes in International Business Machines (IBM), by taking the Information Technologies Infrastructure Library (ITIL) as a basis, which is a standard in IT, and with the help of the Information Technology Service Management (ITSM) Metrics Model. The ITSM Metrics Model is actually used for finding delay times for specific processes and determining specific risks. ITIL is used to decide on the most risky processes for IT delivery. According to observations and some interviews with employees at IBM Service Delivery, the risk level is defined by the percentage of impact of specific risks. Following observations, the effects of these risks on the most risky process is discussed. Findings The risk with the most impact on all processes is “dissatisfied customers”. The second most impacting risk is “delayed solutions”, and the third is “low employee morale”. Research limitations/implications The risks found in the paper can be reduced by conducting more research. In further studies, hypothesis tests could be done over this study to make it more sensitive. Originality/value In this paper, the risks at the IT service delivery are identified, and thus uncertainty can be reduced for firms that are outsourcing their IT departments.

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