Study On Outsourcing Decision-Making And Contractor Selection In Information Technology Outsourcing

Recent years, Information technology outsourcing has being developed quickly as the coming of Internet. However, during the process of Information technology outsourcing fulfillment in the enterprises, Information technology outsourcing has two-sides. Of course, if Information technology outsourcing succeeds, it will bring big profits to the enterprises. On the contrary, either Information technology outsourcing decision-making has problems, or the selection of Information technology outsourcing contractors fires into the wrong flock, the enterprises will face humorous risks. Therefore, establishing suitable Information technology outsourcing objects and selection of effective contractors with a strong research urgency.Firstly, related concept of information technology outsourcing are outlined, such as definition, contents, methods, characteristics and so on, and related theories are introduced, such as transaction cost, core capacity, knowledge-based theory of firm, social exchange, and analysis of Information technology outsourcing based on these theories. Secondly, decision-making research of information technology outsourcing is focused. It is concluded the factors of affecting information technology outsourcing decision-making into three aspects: technologic, economic, and strategic, and in-depth analyses outsourcing gaps which include technology gap, efficiency gap and strategic gap, and proposed a three-stage information technology outsourcing model, and identified technology gap, efficiency gap and strategic gap which are in the model, and in detail introduced using VENN diagram to identify technologic gap, and applied Technology Acceptance Model to perceive Information technology outsourcing. Then, an example of this decision-making method has been applied to the selection of objects for information technology outsourcing. Thirdly, the paper summarizes the prior factors of affecting Information technology outsourcing contractor selection, and comments on existing Information technology outsourcing contractor selection methods, and accordingly, it is put forward a new contractor selection method based on Logit model and Bayesian theory. The new method does not only consider prior factors, which just contain contractors'aspect, but also consider outsourcers'aspect. And it offers a simulated case which choose one of thecontractors'factors—price, and one of the outsourcers'factors—outsourcers'type, as variables to realize the new Information technology outsourcing contractor selection method. Finally, the paper figures out two tactics to ensure Information technology outsourcing success. One is that it should establish partner trust mechanism between outsourcing enterprises and contracting enterprises. The other is that the partners should share respective knowledge to support information technology outsourcing success.