Research On IT Outsourcing Management And Decision Methods Based On Behavioral Decision Theory

IT outsourcing is a kind of outsourcing business,and also an important part of it.It is an inevitable result of business refinement,clear division of labor,and development of information technology.In recent years,companies have gradually adopted IT outsourcing as a strategic decision for the enterprise,and they also expect to gain competitive advantage through outsourcing beyond cost considerations.Under a good organization,companies can even obtain professional guidance from outsourcers,improve their own professional qualities,and get more than expected.As a result,research on IT outsourcing decision has attracted widespread attention.However,most of existing outsourcing decision methods are based on the theory of expected utility,which assumes decision maker completely rational.However,a large number of empirical and theoretical studies have proved that the decision makers are bounded rational.In the process of IT outsourcing decision,the actual decision-makers' behavior will have a certain deviation from the optimal decision.Therefore,based on the perspective of Behavioral Decision Theory,it is of great theoretical and practical significance to explore IT outsourcing decision methods considering decision makers' psychological behavior.It is also helpful to enrich and develop IT outsourcing decision theory and Behavioral Decision Theory.On the basis of above research background,this paper gives a research on IT outsourcing decision problems based on Behavioral Decision Theory,which completes the following work.(1)Research framework of IT outsourcing decision problems based on Behavioral Decision TheoryWe firstly analyze IT outsourcing decision process and the decision-makers'psychological behavior in the process.On this basis,we establish a research framework for IT outsourcing decision based on Behavioral Decision Theory,and descript related issues.(2)IT outsourcing performance evaluation model based on Reflection EffectAccording to problem of IT outsourcing performance evaluation,we give the performance impact factors and its framework.On the perspective of Behavioral Decision Theory,we propose a performance evaluation method based on Reflection Effect,and prove method useful through calculation example.(3)IT outsourcing risk decision model based on Regret TheoryAccording to problem of IT outsourcing risk decision,we summarize the risk factors and give their framework.On the perspective of Behavioral Decision Theory,we propose a risk decision method based on Regret Theory,and prove method useful through calculation example.(4)IT outsourcer chosen model based on Prospect TheoryAccording to problem of IT outsourcer chosen,we give the risk factors framework and its manifestation.On the perspective of Behavioral Decision Theory,we propose a IT outsourcer chosen method based on Prospect Theory,and prove method useful through calculation example..(5)Case studyCombined with reality,we apply our IT outsourcing performance evaluation model,risk decision model and outsourcer chosen model to the IT outsourcing decision process,which decided by IT department of L province Bank A.And it verifies the method proposed in this paper has certain practical significance.The theories and methods proposed in this paper have considered the decision makers' psychological behavior during decision making process,which enrich the IT outsourcing decision methods and have a certain application value.