Research On Business Outsourcing Risk And Control

With the continued competitive circumstance and refinement of international divisionof labor, business outsourcing has rapidly developed globally. To use the outsourcingmodel, on the one hand, company can focus their source and energy on the selectedadvanced field and form the technology and scale advantage in the field. It will make thebest of the source, and is benefit to create owner core advantage; on the other hand, theoutsourcing vendor can breach through internal source restriction, reduce the cost ofcreating core competency.Business outsourcing is a new management strategy; it is a management model thatthe outsourcing companies sign contract with outsourcing vendors, and outsource someinside traditional or enginery business to some professional and efficient service-providingvendors. The reasonable exertion of business outsourcing is not only benefit to reduce theproduction cost, share the management risk, achieve additional profit, it can also strengththe company’s core competitive advantages. But when the business outsourcing modelbrings up the competitive advantage for a company, it also needs the company to take onthe possible risks in the process of business outsourcing. If cannot take efficient analysis,weight and control, the outsourcing company may face unforeseen risk. So the risk controlof the business outsourcing is important and sensible.In this paper, begins with outsource and it’s development. What’s more, extends riskdefine and management process. The paper chooses A company as a case and analysis,weight and control for the possible risk in the current business outsourcing process. On thisbasis, the paper proposes rick control methods and measures for improvement.