Impact of Subcontractors on Project Performance of IT Projects in the Kingdom of Saudi Arabia

Abstract

The Kingdom of Saudi Arabia has experienced a fast development of its IT industry due to the implementation of Vision 2030 plans of digital transformation. Subcontracting has also emerged as a common practice in IT projects in order to capitalize on expertise in particular fields. The presence of subcontractors however brings complexities that may affect project performance like cost, schedule, quality and the success of the project in general. This research article aims at discuss the complex role of the subcontractors on Saudi’s IT project performance by analyzing empirical data and literature. The study finds that regarding subcontracting the risks including coordination problems, delayed payments, and lack of quality is likely to cause project overruns in construction projects modified to IT environments. Through mixed methodology, incorporation of surveys of 150 IT project managers in Riyadh and Jeddah, and statistical analysis, the results demonstrate a positive correlation between the effective management of subcontractors and the increase in project success. The paper explains ways to reduce risks, including effective contractual frameworks and online collaboration tools, and also notes such drawbacks as data void in IT-related subcontracting. This research offers practical advice to policymakers, project managers, and contractors in the blossoming IT sector of Kingdom of Saudi Arabia that requires balanced subcontracting to ensure sustainable output of projects.

Keywords:  Subcontractors, IT Projects, Project Performance, Kingdom of Saudi Arabia