A Study Of Outsourcing Strategy Of Engineering Company

Since 1980's,outsourcing has gained more and more popularity with thedevelopment of information technology and the trend of economicglobalization. "outsourcing "is not only an unavoidable activities but also aconsiderable strategy for every company which wants to succeed in theirindustry. A good outsourcing decision-making can add much benefit toenterprise. However, a bad decision may result in more loss. Accordingly,how to make excellent outsourcing decision becomes a dream of enterprisesand specialists. Firstly,"introduction"and"outsourcing summarization"is put forwardin this Paper. " Introduce " includes four parts : the backgrounds ofoutsourcing , the study meaning , frame and methods. Following , the"outsourcing summarization',introduces the definition of outsourcing,thecost and benefit of outsourcing,the traits of today's outsourcing,etc. Secondly, this Paper constructs a decision-making model. In thismodel,a criterion system is composed of the identifying the components ofyour business that represent the core, capability assessment and reality check.Thesis criterions are introduced detailed. Thirdly, this paper presents a systemic and structural decision-makingprocess for enterprise outsourcing. Through such a systemic and structuralprocess enterprises can improve the quality of decisions. Fourthly, Analytic Hierarchy Process is proposed as a tool that caneffectively handle the complex,qualitative decision variables involved inoutsourcing decision making. At last,this paper gives a demonstration through the simulation ofQingdao L Group Co.,Ltd. This simulation shows a thread for enterprisehow to progress outsourcing decision making in real life.