IT Outsourcing Risk Management For Telecom Operators

Since the China's reform and opening to the outside world, especially in the last decade, the demand for communications increased vastly due to the rapid growth of economy and exchanges among nations worldwide. By this, the telecom operators developed greatly. Meanwhile, the traditional growth model would not satisfy the requirement of telecom operators' development under the situation of fiercer competition and various requirements of the customers. The telecom operators are focusing on the core competences and strengthen persist competing advantages by introducing strategic IT outsourcing that is, importing resources and capacities from outside.IT outsourcing in telecom is a new topic for the domestic operators. To some degree it can help the telecom operators solve the problem of resource lacking and improve the working efficiency, at the same time it brings kinds of additional risks and makes the management of the IT outsourcing necessary. For the telecom operators, how to identify the major risk factors in the process of the IT outsourcing and effectively control these risks are the main topic this paper is going to research.Based on the concept of the risk, this paper gives a subjective opinion on the developing trend of the telecom operators' IT outsourcing, and identifies the major risk factors and kinds of undesirable consequences of the IT outsourcing from previous research. The research also indicates that, for the telecom operators different IT outsourcing strategies give rise to different risks in which some are very dangerous to the operators and some are easily ignored by the telecom operators. At the same time, the risk control approaches are summarized in the framework of risk control mechanism.