The Research On Information Technology Outsourcing Strategy Of Hunan New Wellful Co.,L.td

Hunan New Wellful Co.,Ltd.is a share-holding company specializing in hogs industy,i.e.breeding hogs,export,boar and feed. The government has comfirmed the company National Agro-industrialized leading Enterprise in December 2002.and the one of twelve representative companies in all kinds of Chinese industries.Information Technology outsourcing is a new terminology in China..Companies have little experience about IT outsourcing and the research about IT outsourcing is on the initial stage.Through analyzing New Wellful's strategic planning of information construction,this article aims to access the feasibility of using IT outsourcing in New Wellfull's information construction and it points out the relevant problems in using IT outsourcing.With the strategic development of New Wellful Co. in feed production,feed breeding,feed processing and feed sale vertical unification process,New Wellful can't support its strategic development by purely depending on its own internal resources and information human resources consequently,IT outsourcing offers an ideal choice for New Wellful Co. to rapidly establish and develop its information supporting system that matches its strategic development programme.Based on New Wellfull's information status and its strategic development planning,this article uses Resource Base Theory,Resource Dependancy Theory, Nucleus Competition Theory and SWOT Model to analyze and generate the IT outsourcing requirements for New Wellful Co.;it suggests that New Wellfull Co. should secure organization prepration and IT planning before using IT outsourcing;following scientific IT outsourcing procedure,it specifies the content of New Wellful's IT outsourcing,how to select outsourcing partner,how to select the content of contract negotiation,how to manage transition and how to manage IT outsourcing relationship.At last,regarding the possible risks and precaution measurements in IT outsourcing,this article uses Transaction Cost Theory and Agency Cost Theory to analyze the benefits of IT outsourcing and provides relevant operation procedures.