We find that for internal and outsourced IT projects, the social subsystem and project management risks are negatively associated with system performance. However, technical subsystem risk has a negative effect on performance only in internal projects.On the one hand, social subsystemrisk influences system performance to a greater degree in outsourced projects than in internal projects, whereas technical subsystem risk has greater impact on performance in internal projects than in outsourced projects. Moreover, project management risk was not found to