An Empirical Study of Risk Management Approaches in Information Systems Development Projects from the Vendor's Perspective: Evidence from Japan

Even though the IT outsourcing market continues to grow annually, most risk management research has primarily viewed vendors as a singular type of risk factor, without delving into risk management from the vendors' viewpoint. This study aims to fill this gap and enhance the current, limited empirical research concerning risk management in information systems development (ISD) projects. Our contributions are twofold: First, by unveiling a risk assessment framework from a Japanese vendor company and juxtaposing it against existing literature, we underscore that understanding risk management from the vendor's perspective is paramount; Second, we establish a composite model, integrating both effort and time dimensions, based on regression analyses of 269 ISD projects. From a list of fifty-nine potential risk factors, seven were identified as critical. Notably, the elements of Data Migration Responsibility and Delay Impact on the Customer emerged as significant, demonstrating that the risk intensity of certain factors doesn't always correlate directly with a project's failure rate. Furthermore, our proposed model offers insights into overcoming obstacles that hinder the practical application of risk management research findings.