Research On Outsourcing Decision-making Based On Cost-benefit Analysis

Faced with an increasingly intense competitive environment, every enterprise is in the continuing quest for sustainable development strategy and policy. The fierce competition in today's market environment has forced the enterprises to cut costs, improve service quality to gain competitive advantage, and the ever-increasing demand for low-cost and high level of service has forcing organizations to rethink the way they operate their business. From the beginning of 1990's, with the proposing and popularization of the concept "core competence", business outsourcing has rapidly risen. In this highly competitive, customer-oriented market environment, enterprise outsourcing has become a good choice of a way to use limited resources more rationally, to significantly improve operating and to make functions more effective. More and more managers regard outsourcing as a way to reshaping corporate frame, to free itself from the vertical integration model and create a more flexibility, focus on core business enterprises. And a way to strengthen the core business and improve customer relations.The numerous advantages of outsourcing reasoned a growing number of enterprises to outsource their business. However, outsourcing is not always successful, many reasons led to the failure of outsourcing, and mistakenly decision making is the most crucial factor.If companies really want to improve their operations and to enhance their competitiveness through outsourcing, they must abide by a system of scientific decision-making process and do policy analysis, at present the domestic theoretical study of Outsourcing is quite insufficient, especially on the outsourcing decision making is still in the exploratory stage of the study.Combining the research methods of direct investigate and indirect statistics, qualitative analysis and quantitative analysis, theoretic research and demonstration analysis, this thesis research on enterprise Business Process Outsourcing Model. This research will give guidance to enterprise about how to make a successful outsourcing decision, and then advance the enterprise competition and assure its stable, continually development. Meanwhile, we hope this research will enrich the theoretic research of outsourcing theory.This thesis can be divided into six parts. The first part simply described the background, objective of the research and the content and research method of this thesis, and also the basic research actuality. The second part introduced the basic theory related to outsourcing decision making. The third part analyzed the reasons for outsourcing, including financial reason, strategy reason and operation reason, and then analyzed some factors which reflect outsourcing decision. The fourth part is the core part of this thesis, we build a three-phase layer outsourcing decision-making model. Three major parts of this model are demand analysis, cost-benefit analysis and risk analysis. The fourth part is the detail explanation of the three-phase layer outsourcing decision-making model. The sixth part is demonstration analysis take Zhejiang Wenzhou Taigang printing Co., Ltd as example. And at last we made a full thesis summary and a research forecast.