Risk, normally is defined as undesired result, and may bring positive or negative result. IT projects are having a nature of complexity, and software project as one of the IT projects, Armour states in his article that “every software project involves some degree of risk” (Armour, 2005).
Generally speaking, there are two major purposes of IT project outsourcing, 1) for cost and 2) for expertise. Microsoft as one of the biggest software companies is using outsourcing in many projects and products development. And I used to directly work with vendor teams together in several projects for years. There were many successful deliveries made by our vendor teams during past several years and overall we are satisfied with their work. But I have to admit there are always many risks in these outsourced projects and sometime the negative impacts of these risks do cause economic loss.