Risks in Outsourcing R&D to India: What are the risks when an R&D organization outsources and how can the management of these risks be improved?
Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
This thesis describes how outsourcing of research and development influences the risk exposure and the management of it in an R&D organization. The R&D organization that we have studied is a department that is part of one of the leading telecommunications companies in the world, a company that in this thesis for confidentiality reasons has been given the fictitious name Telecorp. In the studied organization, which is called Devcenter, many activities have been outsourced to a third-party supplier called Outcorp. This thesis looks more specifically at three vital questions: what risks are the R&D organization exposed to, what does the R&D organization do to manage risks and how can the R&D organization improve its management of risks? These questions were examined by conducting interviews with mostly managers at the studied department. The people interviewed are for descretionary reasons only denoted by their initials in the thesis. In addition, literature within the associated areas and internal documents at the department were also studied. The result was that several risks with outsourcing were identified. The majority of these risks were competence-related, while the other were associated to wages, capability and flexibility. Many of these risks have not been dealt with properly, which means that they can have severe consequences for the organization in the future. Hence, an improvement of risk management practices is needed. This can be achieved by doing scenario analyses or creating a centralized database comprising of information regarding risks associated with R&D outsourcing. However, the main challenge is to change the employees' attitude towards risk management. In addition, developing a risk management model adjusted to outsourcing projects is something that many employees have expressed a need for.
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IdentifiersURN: urn:nbn:se:su:diva-5972OAI: oai:DiVA.org:su-5972DiVA: diva2:195883