A Study On The Relationship Between Contracts And Outsourcing Performance In International Service Outsourcing

With the global economic recovery, it is obviously that the international service outsourcing growing rapid again, the service outsourcing has achieved substantial growth in many countries. After the economic crisis, many large multinational companies have taken outsourcing to achieve efficiency. Therefore, the market of service outsourcing has been further expanded and is expected to reach ＄1.8 trillion to ＄1.65 by 2020. According to the forecast from Gartner, the market of service outsourcing is expected to reach ＄288 billion in 2013 and it will be more than 13% growth in Asia Pacific, Latin America and the Chinese market. At the same time, with the development of the tendency in environment, science and technology and the flattening the emerging industry got the attention of the countries around the world, and is gradually developed. As the important development direction, the industry of service outsourcing becomes the important driving force of the development of the global economy in the future.As the outsourcing projects gradually returning to growth, the competition of vendor is also more and more fierce. The ITO and BPO have been the driver force of economy in many countries, and the emerging countries have increased the support for the international service outsourcing. In China, the contract total sum of vendor in international service outsourcing annual growth of more than 60% from 2008 to 2012 and the market share of global offshore outsourcing rose to 7.7% from 27.7%. China became the second offshore outsourcing vendor country in the world. Meanwhile, the situation is not so good, India is the No.1 and there are many countries developing the international service outsourcing rapidly. On the other hand, the interaction service outsourcing involved developed and developing countries, there are many culture gaps and regional restrictions. It is an important topic to keep tight relationship and improve performance in the service outsourcing From the interaction in the outsourcing, the study in the operation mechanism of relational contract and the impact on the performance should provide a reference basis to outsourcing vendor choice and interaction, and it is especially for China.Through in-depth literature study and extensive field investigation, we found that the relational contract plays an important role in international service outsourcing. It is not only all through the process of outsourcing but also has more important effect. At present, the promotion of performance in outsourcing mainly focus on the course of the executive and control mechanism, both of them are limited on the self of outsourcing, such as cost control, degree of satisfaction and pay more attention to products or projects. On a long view, due to the gaps on culture and legal system, the relational contract should be an important role in international service outsourcing, especially for vendor, must build the relationship with the buyer through trust and communication from the perspective of relational contract, and ensure the quality and performance of the project. It is same to the buyer, the relational governance provide a way to improve performance and core competitiveness.From discussed above, based on relational contract theory and combined the fact of international service outsourcing, this paper analyzed the operation mechanism and the affect on performance of relational contract. At first, begin with the character of the relational contract in international service outsourcing, this paper analyzed the operation mechanism of relational contract, classified the relational norm into three, contribution relational norm, course relational norm and content relational norm Secondly, this paper built the outsourcing performance model, and in order to service outsourcing enterprises in China as a sample to collect data, using structural equation modeling and analysis software AMOS7.0 test the hypothesis presented in this paper. Empirical research found that:1. The fore facts enterprise identity and cooperation intention have a significant influence on service outsourcing performance.2. The relational norms have a significant influence on service outsourcing performance. The stronger the norms, the higher the performance improved.3. Enterprise identity and cooperation intention, through the intermediary role of the relational norms. Among these 18 relationship path, there are seven fully supported (full mediation), eight weak support (partial mediation), three did not support (without an intermediary effect). Structural equation model analysis supports the conclusions of an intermediary from the overall model is reasonable.The main innovations and contributions of this study are as follows:Firstly, begin with the relational contract the perspective of the study focused on the interaction of international service outsourcing, analyzed the operation mechanism and the effect on outsourcing performance through the empirical research. The paper also discussed the applicability for China. Secondly, regardless of service outsourcing, international service outsourcing, relational contractor the relationship between buyer and vendor, there have so many theories and achievement on each of them. It is a large innovation to combine all of them and analysis systematically. It is also a creative application and development on the theory of economics, management and contract theory and the fore research achievement Thirdly, this paper expanded the application of relational contract, combined the theory, mechanism and effect of the relational contract and international service outsourcing Meanwhile, to a certain extent enriched the effect facts of the outsourcing performance.Due to some academic attainments, there still have many shortcomings and limitations in the study. In the last part of this paper, the author presents the limitations of this study and several issues that need to be researched in the future.