Halstead, Susanne

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Project portfolio management as a tool for value creation and risk management in the IT outsourcing vendor
(2010) Halstead, Susanne; Ortiz-Rodríguez, Rosario A.; College of Business Administration; Córdova, Mario; Seguí, Miguel; Department of Business Administration; Ferrer, Mercedes
Taking the vendor perspective of IT outsourcing, Project Portfolio Management is described as a tool for value creation and risk management. Superior processes and project management are at the core of the IT outsourcing vendor’s value proposition. The work describes key knowledge areas that make up the theoretical foundation for the definition of management and production processes in the IT outsourcing vendor. Because estimates play a central role in the IT outsourcing vendor’s business, and here especially the technique of expert estimation, this work investigates this estimation technique in more detail and in the context of Puerto Rico. We investigate the influence of incomplete expertise in terms of domain knowledge or experience with the technology on the reliability of estimates. Finally, it is shown how Project Portfolio Management can be used to integrate an IT outsourcing vendor’s strategic goals and create the value proposition to clients.