Research On Outsourcing Decision Methods

With the increasingly heated market competition, enterprises have to continually improve their market competitive forces by process outsourcing. Process outsourcing is a kind of business operation activities of the enterprise that from a long-term process perspective and the enterprise established a partnership with vendors by outsourcing services through outsource part or all functions (as production, sales, logistics, customer relations etc.). Now, process outsourcing had become the main means of gaining competitive advantage. The worth the whistle is that:with the outsourcing development, outsourcing model change to diversification, the decision information of outsourcing process change to diversification, outsourcing had been a complex decision process. How to select the right business and a suitable vendor considering complex situation become an important issue. At present, although the process outsourcing has been extensive concerned by the business, but in the academic the relevant research is just beginning, and is most scarce to see the research on assisting business to have a process decision on outsourcing.Therefore, it has both theoretical and practical significance to abstract the decision-making problems of process outsourcing, and gives scientific effective evaluation index system and analysis methods. In view of this, this article attempt to make some efforts in this respect.This article has the overall framework of "description of the process outsourcing decision problem-the method for outsourcing business selection considering interaction information-the method for vendor selection considering expectation information-the method for vendor selection considering collabration information-study of instance analysis" and it had a system of research on number of process outsourcing decisions to provide a methodological guidance for enterprises.This main research is as follows:(1) Describe the decision problem of process outsourcing and establish the framework of research.It defines the concept of process outsourcing. the author thinks that the concept of process outsourcing may be defined as:By analysis the drivers and the features of the process outsourcing, this article summarizes11distinctions between process outsourcing and conventional outsourcing, then gives the general description of process outsourcing decision and its framework.(2) Research on the method of process outsourcing business selection considering interaction information. It ascertain the scope of outsourcing benefits.-Enhance the organizations’flexibility, achieve advantaged resources, enhance the capacity of developing new markets, and acquire innovative techniques. According to the relativity among outsourcing benefit, the author brings forward a kind of benefit assessment method which considered of related indicators. This method use of vague principles collecting a number of values of benefit indicators, and resolved the problem of indicator’s nonadditively. It summed up five risks of the business outsourcing:hung up, hidden costs, contract revision, decline of service quality and legal disputes and litigation, and offered a kind of risk assessment considering the risks associated. This method based on the identification of multiple risk relations, according to the probability and conditional probabilities of the risk of the lowest layer which is given by the expert group, calculating the overall probability of the risk layer to layer by using conditional probabilities formulas and all probability formula, at last gathering the risk damage to get final value of the risks. According to the ideological of TOPSIS, this article provides a method of selecting process outsourcing that has considered the income and risk factors, and the result can be divided into four types of outsourcing business, adventuresome business, conventional business and homemade business.(3) Research on the method of process outsourcing vendor selection considering expectation information. It established an evaluation index system for the individual outsourcing service, and put forward a method of outsourcing selection that considered of expected index information. This method under axioms design ideas deal with the expert groups’ expectant information of evaluating indicator and the evaluation information about the actual performance of the process outsourcing service, that both in the form of phrase.(4) Research on the problem of process outsourcing vendor selection considering collaborative information.The information at expected levels that satisfied the panel can be quantification. It established the collaborative evaluation index system. This system considers not only individuals but also the collaborative information. It describes the individual information and collaborative information respectively in the form of matrix, and gets the comprehensive evaluation of the outsourcing service from several indexes.(5) An analysis of the MC Company’s process outsourcing decision. To introduce the background of MC, and the related theory and methods that proposed in this article will be applied to the MC Company’s process decision.The theory and method that proposed in this article can give the enterprise guidance both on policy and application to solving problems in the process of business outsourcing.