Study On The Risk, Cost And Decision-making Game Of BPO In The Asymmetric Information Condition

This paper makes a systematic analysis of researches on the national influence of outsourcing, the motivation for outsourcing and its benefits, and researches result in implementing and management of outsourcing, management of outsourcing providers, risk and cost of outsourcing and management of cooperation between outer prices involved in outsourcing practice conducted by researchers in the field of outsourcing.Then the author makes comprehensive and detailed analysis of the risks confronted by outsourcers and providers in the process of business process outsourcing (BPO) according to the roles played by an enterprise in the condition of asymmetric information.The author also proposes some countermeasures and suggestions for preventing these risks. Then the author analyzes the cost of BPO for outsourcers and providers before and after the outsourcing strategy is put into practice and makes special estimation of each cost.Finally, a BPO decision-making model is established with asymmetric information employing game theory. Quantificational analysis of the cost of risk management, total agential cost and the average net expense are given both with asymmetric information and symmetric information. The author also discusses inspire policy with asymmetric information.