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Understanding IT outsourcing risk: incorporating risk management in your IT sourcing strategy

Outsourcing decisions have long term consequences. Understanding how IT organisations and IT executives make decisions, value risk and manage risk is an integral part of IT outsourcing

The consequences of poor decision making with resulting lock-in effects can be detrimental to competitiveness, undermine organisational morale and incur significant costs

Managing risk during the IT sourcing life-cycle is at the heart of successful IT outsourcing

Review business alignment

Assess lock-in effectsMonitor contract leakage

and performance

Understanding of internal execution capability

Understand alternative market capabilities

Monitor exit capability and readiness

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3gamma Insights: Idea in brief