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Risk Factors in IT Outsourcing Partnerships: Vendors’ Perspective

In recent years, information technology (IT) outsourcing is a widespread practice in the global business today. Business organizations decide to transfer such kind of services to other firms (vendors) in search of cost-related and other competitive advantages. Identification and handling of risks appears to be crucial for IT outsourcing success. The objective of this article is to identify the main risk factors related to IT outsourcing partnerships from the perspective of Bulgarian vendors on the basis of empirical study. The analysis is based on theoretical grounds provided by the specialized literature and utilizes selected results from a survey of outsourcing relations between Bulgarian vendor organizations and their clients (outsourcers). The study is focused on the risk factors that could potentially hinder the formation and development of strategic outsourcing partnerships. Some of these risk factors act as threats for outsourcing success and their potential effects need to be considered within the risk mitigation strategies of IT outsourcing service providers.