A Study On The I T Outsourcing Pricing Decision-making Model Based On Transaction Cost Theory

Along with the improvement of the informationization degree, IT outsourcing as a type of resource strategy is being strengthened day by day.In the enterprise's information construction and E–government construction, it helps to low costs, improve the key competitiveness.During the last several years outsourcing has emerged as a major issue in information systems management. As competitive forces impinge on business firms, senior managers are re-structuring their organizations with an eye on attaining or maintaining competitive advantage. How then are managers to choose from a set of options that which is most appropriate for their firms? A wrong decision can result in loss of core competencies and capabilities, and exposure to unexpected risks. To date no studies have been done to determine which strategies are appropriate under what conditions.Although many articles have appeared on outsourcing, few have extended the discussion beyond simple cost benefit analysis.To address this question, this thesis firstly demonstrates the current state and existing problems of IT outsourcing decision, as well as the challenges we should face. Secondly, we comprehensively analyze IT outsourcing's theory, advantage. Consequently, we analyze the possible cost and benefit, the quantitative analysis method and theoretical interpretation are also given. Then based on transaction cost theory a decision model is built. Afterwards, we validate the feasibility of the model using an IT corporation information system reconstruction project.Finally, this thesis summarizes current study and proposes future research directions of IT outsourcing pricing decision.