• Deutsch
  • English

Risk-Reward Sharing in IT Service Contracts – A Service System View

Dimension Value
  • Type of the Research Result
  • Model
    • Explanatory Model
  • Current Status of Development
  • In Progress
    • Without Pilot Application
  • Number of Cases
  • None
  • Functional Area
  • Core Processes
    • Core Processes Second Level
      • Distribution of Product-Service-Systems
  • Supporting Processes
    • Law Management
    • Company Size
    • Not Specified
    • Lifecycle Phase
    • Not Specified
    • Types of Customers of Value Bundles
    • Businesses
    • Industry Sector
    • Transport and Telecommunication
    • Standardization
    • No Standardization

    The  paper  analyzes  the  sharing  of  risks  and rewards in IT service contracts from a service system perspective. Using a formal model, it can be shown under which conditions a risk-reward sharing contract can be advantageous for both supplier and customer and, thus, make the IT service system that is formed by them more efficient. Decision criteria for the selection and suitable design of such contracts are developed. Risk sharing turns out to be advisable in typical situations with IT providers being more or less risk averse than their customers. The application of these results hinge on the progress of measuring risk and risk aversion in practice.

    This research result was described by Sanja Tumbas (5. July 2011 - 12:16)
    This research result was last edited by Sanja Tumbas (5. July 2011 - 12:23)

    Further information

    This Research Result is related to the following Organization/s

    This Research Result is connected to the following Publication/s