Research On Indicator System Of Risk Early-warning In ITO

With the spread of information and network technology, Information Technology Outsourcing (hereinafter, ITO) appears an increasing trend. Most of the IT business processes, except core business, are being outsourced increasingly, because enterprises concentrate on developing their core competitive advantages. However, due to the limitation of core competence, as well as its diversity and uncertainty, enterprises are facing many risks in the process of ITO. The results of ITO may go against the expected income, for examples, ITO increases costs instead of reducing costs, bring about decrease in profits, or the risk of supplier selection due to asymmetric information, bring about the occurrence and loss of risk.To improve the market competitiveness of enterprises, IT business process except core business is being outsourced increasingly. Market size of the Information technology outsourcing increasingly, it can bring many benefits while there may be some potential risks. Therefore, it is necessary to establish the ITO risk early warning indicator system and risk early-warning, as well as the emergency mechanism to avoid the risk of ITO.ITO risk warning system in the area of economic can monitor particular economic subjects, find the sources,the range, the degree and the trends of the risks through a series of economic methods, and send out the danger signal as early as possible. Therefore, in the process of ITO, enterprises should strengthen the concept of Risk Early-warning, policy makers should guard against risks in advance, establish the ITO risk early warning indicator system and risk early-warning overall, identify and determine in ITO. Send a message of pre-alarm degree, and taking measures to avoid and reduce the occurrence and loss of risk.The feasibility of this paper is demonstrated by analyzing the researches of risk early-warning in ITO at home and abroad. Various factors are combined on principles and design ideas. On the basis of absorbing and drawing lessons from the relevant research results, an indicator system for risk early-warning is built. Valuable data are obtained by the questionnaire survey, and the indicator system is optimized by using factor analysis. At last the risk level of a company was conducted by fuzzy evaluation method, and reasonable suggestions are given. It can make the system of risk early-warning indicators possible to operate.