Software Outsourcing Employer Comparative And Empirical Study Of Risk Management

Today, computer has been invented for decades. Computers have become ubiquitous. It has become an indispensable tool for almost all business, and in many cases, it is one of the major production tools. In this situation, demand for computer software is increasing, and software is become more complexity. If each user who use sofeware must develop software by their own, it is not only difficult to achieve, but also a waste of resources. So, software outsourcing is included in the list of the many companies’software development way. However, since the first software was produced, failure of software projects has never been put an end. Whatever it is developed by themself or outsourcing supplier, we can’t100%that the software project won’t be fail. When sign software project to a professional software company, it does not mean that will be able to get a usable software back eventually,100%satisfied with the software will never ever happen. Various uncertainties is the main reason of this situation, we call it risk. This is not to study how to deal with risk when it comes, and it is not discuss how to prevent any certain risks, the main purpose of this paper is to bring a more rational concept for company who is planning to do software outsourcing. In addition, we recommend a software outsourcing risk management process, in order to reduce the risk of software project outsourcing. This article refers to the actual examples of two companies to explain the point of view.This paper introduces the situation of software outsourcing in the global and software outsourcing industry in China first. Then goes on to list main risks of software outsourcing, and analyze how these risks bring software project to failure.Two projects referenced in this article come from two financial background companies, although the project of TF delaied, but the software completed atlast, the OV project is in the semi-finished state. To explore why one of the two projects almost failed but the other succeed, the paper described the basic situation of the TF, OV and their projects. And then showed outsourcing motive of them, the risk identification process and the final results. They do those things without of any theoretical guidance. Chart comparison of two practical projects throughout the software outsourcing process in order to reflect their respective problems. A conclusion from the comparison results:Decision of software outsourcing must be base on the conditions and the specific circumstances of the project and organization. In other words, the software project is success or not is determined by whether the firm had chosen the right development mode. If the choice is outsourcing, then the contracting way will have a direct impact to the project.When we get the points mentioned above, this article describes how to analyze and choice a right mode of software development and contracting way by SWOT, then introduces a Boston matrix which is used to define the software project situation from another view point. In this paper, we also recommend there should be a list of items for qualification of suppliers, give a score for each item of each supplier. It can make it easier to compare qualifcication between all suppliers.Into the software development stage, it is recommended that using Delphi method to identify risks, and then brainstorming setting risk response measures. Meanwhile, in the course of the project also proposes to set several indicators to monitor the quantitative value, time to time determine whether the project in a normal state. Through the above process, although not100%guarantee that software outsourcing project in schedule and never overruns budget, but it can avoid that getting any "big surprise" at the last moment.