Study On Object Selection And Target Design Of Strategic Information Technology Outsourcing

Outsourcing is becoming more prevalent each year, so is Information Technology Outsourcing. More and more corporations engage in information technology outsourcing for the strategic purposes. It is unavoidable to select objects and design targets in strategic information technology outsourcing. Corporations depending on information technology must be cautious when they are to outsource information technology actively. As the information technology activities integrate tightly with business activities, it makes the impact of information technology outsourcing hardly to be estimated accurately. If one selected the wrong object, it would damage the strategy of the whole corporation.In order to easy the management of outsourcing corporations incline to use objective indexes to assess the effect of outsourcing. But the real strategic value of outsourcing only could be described exactly by both the objective and subjective indexes. These indexes come from various targets of outsourcing. Corporations who fail to find and gain the targets will lose value in outsourcing.In order to solve these problems this dissertation discusses two closed issues: (1) How to explore the proper outsourcing targets from the view of Corporation Strategy, and how to deal with the extractability of IT activity?(2) How to assure unverifiable objects by the right cooperative form, and what are the constraints to which outsourcing target subjects in this form?On the first issue the dissertation uses value-net to describe the relationship between corporation and vendor, and explores the demand of outsourcing in terms of corporation resource condition, which is related to value creation. Then it checks the feasibility of outsourcing by extractability of IT activity. At last the dissertation establishes a framework to analyze the proper outsourcing object for the strategic targets.On the second issue the dissertation pursues the unverifiable targets by the strategic partnership and the relational contract is used as the base of this partnership. This dissertation also discusses the relation between the strategic outsourcing target design and the vendor's behavior of hidden cost information in a general relational contract model, and provides advices on target design.There are four important conclusions drawn from the analysis. First, the role of IT activity in value creation is very important to the selection of the object that will beoutsourced. Second, the demand of outsourcing is due to the capability of value creation of IT activity and the resource limitation of corporation. Third, corporation could attain the targets of strategic outsourcing by means of relational contract, which will make the subjective information sufficiently utilized. Fourth, how to balance the value relation of corporation and vendor is very important to bilateral constraints between outsourcing target and cooperative form.