Risk Effect on Offshore Systems Development Project Cost | Zendy

Gerald DeHondt | Zendy; George Nezlek | Zendy

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Risk Effect on Offshore Systems Development Project Cost

Author(s) -

Gerald DeHondt,

George Nezlek

Publication year - 2010

Publication title -

journal of computing and information technology

Language(s) - English

Resource type - Journals

SCImago Journal Rank - 0.169

H-Index - 27

eISSN - 1846-3908

pISSN - 1330-1136

DOI - 10.2498/cit.1001816

Subject(s) - vendor , risk analysis (engineering) , computer science , process (computing) , submarine pipeline , cost estimate , business , operations research , marketing , systems engineering , engineering , geotechnical engineering , operating system

Organizations frequently consider offshore systems development in the belief that projects can be completed for lower cost. While prices quoted by offshore vendors are often very appealing when compared with domestic vendors, additional risks must be considered when looking into offshore systems development. These risks typically take the form of intangible and indirect project costs which add to the total cost of the delivered system. This paper describes and classifies these risks, which fall into three primary categories of security risks, legal risks, and general risks. Suggestions for incorporating these intangible and indirect costs into the decision making process, and their effects on total project costs, are offered for the offshore v. domestic vendor selection process.