Governance Research Of Service Outsourcing Relationship

Service outsourcing refers to handing over of service functions by firms to providers where the former does not have ownership, authority or direct control. Service outsourcing covers multiple business activities in financial, medical, telecommunications, manufacturing and other various industries. International service outsourcing industry has shift to China and brought about great opportunities for China's industries.Compared with the rapid development of service outsourcing in recent years, the research about this important commercial phenomenon has fall behind. With the objects of Service outsourcing gradually shift to high-end of value chain, customers are no longer satisfied with low-cost driven. They begin to hope that outsourcing can help enterprise focus on core competitiveness and even achieve a higher value such as business transformation. The client-vendor relationship of service outsourcing in this context is more complex, how to governance Service outsourcing relationship is the purpose of this dissertation.The contents of this research include the establishment of service outsourcing governance structure and the design of contractual governance in service outsourcing relationship.Allocating different kinds of service outsourcing relationship to different governance structure according to different characteristics of service outsourcing relationship is the aim of the designing of governance structure. The research works of this part are as follows. Firstly, the dissertation identifies three types of Service outsourcing relationship by studying three different Service outsourcing relationship cases and divides service outsourcing relationships into tacitical relationship type, strategic relationship type and transformational relationship type. Then, describing these types of service outsourcing from the theoretical basis, the customer's driven reasons and the customer's desire of capacity requirements of the vendor. Then, the characteristics of service outsourcing relationship is described from the transaction characteristics, risk characteristics and the characteristics of transferred knowledge in outsourcing. Then, contractual governance mechanisms and trust governance mechanisms are introduced and their roles in outsourcing relationship governance are analzing. Finally, service outsourcing relationship governance structure is established based on the analysis before and assign the appropriate contract governance and trust governance to different types of service outsourcing relationship.Contractual governance is the the most important and most basic governance mechanisms in service outsourcing relationship. The research works of this part are as follows. In tacitical outsourcing relationship, explaining the role of first-price sealed-bid reverse auction in disclosing the vendor's cost, designing the market contract by taking into account the factor of supervision and analysizing the trade-offs between paying to the vendor and inputs in monitoring. In Strategic outsourcing relationship, the dissertation takes into accout the following three situations: considering the issue of tacit knowledge transfer in outsourcing and designing incentive contracts and analzing the forms of optimal contract in the context of knowledge management; considering the issue of contract agency costs and introducing internal business process performance variables into the contract and analysizing the choice criteria of the internal business process that introduced into the contract to do the relative performance comparing as well as the effectiveness of reducing agency costs; considering the issue of long-term co-operation and design a two-period outsourcing contract as well as analysizing the influence of reputation effect and ratchet effect at the same time to the contract designing problem. In transformational relationship: considering the issue of the contract can not be completely and designing a incomplete contract as well as analyzing the influence of negotiation ability and asset specility to the contract; considering the issue of unverification of the contract's results and designing relational contrat under in the presence of a formal contract and analyzing the self-enforcing condition of the contract.