Experience and Inspiration of Risk Management of India’s Software and Service Outsourcing

Abstract

India is well-acknowledged as a destination for global software and service sourcing. There are much best practices of risk management in outsourcing that we can learn from India. Since 2009, the State Council approved 21 cities to be service outsourcing demonstration cities. Software and service outsourcing has played an important role in economic development. However, due to the complexity of the software services outsourcing, the risk is also complicated and difficult to identify. Learn from India’s risk management strategy, the risk factors can be recognized using critical success factors from the point of service-providers, and a comprehensive risk management mechanism should be built by the government and the businesses together. Measures taken to protect outsourcing industry from risks include market diversification, industrial scale expanding, and industrial gradient transfer, and construction of the contractual relationship governance mechanism and the protection of intellectual property. Key words: Software and service outsourcing; Risk Management; India