An evaluation of the risks involved in onshore IT outsourcing -A case study of Citiserve Limited Nigeria

University essay from Blekinge Tekniska Högskola/Sektionen för management

Author: Abass Balogun; [2010]

Keywords: Risks; Outsourcing; Onshoring;


IT outsourcing has been, and will continue to be a widely accepted strategic option for organizations growth and attainment of its set objectives. It has brought about state-of-the-art technology in the form of improved business processes, a strategic focus on core competences and cost saving techniques amongst others. At the same time, it has brought with it the challenges that need to be addressed if the process was to fulfil its set objectives without impairing the goals and objectives of the firm. Due care and diligence should be taken to mitigate IT risks such as unforeseen escalated costs, vendor lock-in, confidentiality problems and so on. In forestalling these challenges, the recipient is expected to ensure that the vendors are competent and guided by relevant professional ethics; here, certifications play an enormous role in assuring the service recipients they are dealing with the right vendors. It is crucial that the recipient set out in clear and concise terms, the conditions of the relationship using a detailed contract. This would specify the deliverables, service expectations and penalties or litigations. Overall, the thesis is built on answering the research questions:  Why do organizations outsource IT services?  What are those risks involved in IT outsourcing?  How can the IT risks be mitigated? Leveraging on the case study of Citiserve Limited (Nigeria); this research made attempt to align the theories and the case in bringing to the fore the seeming trend emanating from IT outsourcing in service (logistics, distribution and marketing) industry.

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