Research On Business Outsourcing Decision-making Model In Enterprises

So many benefits of outsourcing give reasons to more and more enterprises to go to the way of outsourcing. The growing outsourcing market also showed boundless enthusiasm of enterprises for outsourcing. However, outsourcing is not always successful. There appears to so many reasons leading to the outsourcing failure, in fact, the ultimate reason leading to the outsourcing failure comes to the conclusion on inappropriate outsourcing decision-making. Even if the companies really need of outsourcing, also needs a guidance of correct theory and methods in the process of outsourcing decision-making and execution. In the process of outsourcing decision-making is easy to overlook some of the key but hidden factors, which will entangle the company in the process of outsourcing implementation in various forms, and ultimately affect the entire outsourcing, or even affect the success or failure of entire outsourcing decision-making. Therefore, if companies want to improve their business situation and enhance their competitiveness by outsourcing, they should follow a systematic and scientific process of outsourcing decision-making through perfect analysis of decision-making.Firstly, based on the previous studies, the paper arranged and analyzed the related research results about business outsourcing, business outsourcing decision-making model and the application of real options. Secondly, the paper defined the meaning of outsourcing, analyzed the theory basis of outsourcing decision-making, and explained the motivations and the risks of outsourcing, laying a solid foundation for the later empirical analysis. Then, by the introduction of the concept of real options, the type of the real option and the typical evaluation model of real option, conveyed the costs of outsourcing risks into the value of real option, valued the cost of risks. Following, built the model of outsourcing decision-making on the basis of the above-mentioned, realizing the quantitative analysis of outsourcing decision-making. Then, the paper did the empirical analysis on the business model of outsourcing decision-making proposed by the case of the enterprise of AW, providing the ideas of how to use the model of outsourcing decision-making into practical ways. Finally, gave some recommendations about outsourcing in enterprise.