Best tips for risk management


Software Risk Evaluation And Offshore Risk Management

A risk can be defined as a problem that couldgoverning the offshore relationship - client
cause some loss or threaten the success of ofmanagement, third party contract. The
project. The potential risk factors may haveapproach focuses on the evolution of services
an adverse impact on the cost, schedule, orprovided, ongoing communication processes,
technical success of the project. Thus, riskand overall project management. Governance
management is the process of identifying,activities pertaining to areas of off shoring
determine and solve the potential problemscan  make  or  break  a  project.
before  they  can  damage  the  project.
The Ongoing governance involves the
Offshore program and project managementfollowing:
involves  four  critical  activities:
-  Project  management
1.  Transition  Management
-  Relationship  building  and  management  -
2.  Governance
- Risk management - describes the processes
3.  Performance  Managementconcerned with identifying, managing, and
correction  of outsourcing partnership risks.
4.  Quality  Management
Performance  Management
Transition  Management
As offshore outsourcing has become an
The process of managing assets during aimportant aspect for multiple business
period of restructuring is defined asprocesses, the types and complexity of
transition management. The role of thecontracts and sourcing alliances are bound to
Transition Manager is to minimize the costsexplode. With organizations outsourcing
and risks thus ensuring that the process runsalmost every aspect of their operations,
smoothly.multiple vendors participating in sourcing
deals, and activities occurring 24x7, it's a
The real process starts when the contract isnonstop challenge to coordinate interactions,
signed. Smooth transition management is themanage performance, monitor contract terms,
next issue to manage. Transition managementtrack financial metrics, and maintain
is considered to be a critical success factoralignment.
of offshore activities. Transition management
is defined as the detailed knowledge ofOngoing  governance  involves  the following:
transfer and documentation of all relevant
tasks, technologies and workflows The- Measures outsourcing effectiveness using
transition period is perhaps the mostappropriate  metrics
difficult stage of an offshore endeavor,
taking anywhere from three months to a year-  Implementing  improvements and adjustments
to  complete.
- Evaluating feasibility of additional
Transition management involves the following:outsourcing
- Develop an initial transition planQuality  Management
(involving activities such as milestones,
assets  and  benchmarks)Quality is a huge concern with offshore
outsourcing. Errors are more costly to fix
-  Initiation  of  projectsand debugging becomes essential. A strict
quality assurance and control program forms
-  Internal  procedures  and  processesan integral part of every offshore delivery
project.
-  Manage  employees
Performance management aims at reviewing and
- Document lessons learned to improve vendorcontinuous improvement of software
managementdevelopment and business processes,
validation and verification of work products
Governanceafter managing the issue ofand customized status reports.
transition put the skills into practice by



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