Research On IT Service Outsourcing Decision Of X Bank Yunnan Branch

In recent decades,IT has been supporting and leading the development of the banking industry.Banks are faced with contradictions in the outsourcing of IT services.On the one hand,IT outsourcing can help improve bank IT capabilities,drive and support business development.On the other hand,outsourcing may result in leakage of bank's information,losing of core IT capabilities,and subjecting to IT outsourcing service providers.Although there are many references to the bank's IT service outsourcing,most of them are considered from the perspective of the head office.IT's functions and contributions are not the same between a bank's head office and provincial branches.Branches also have problems and difficulties in the decision-making of IT outsourcing services.Branches need to solve the problems and resolve difficulties in this aspect.From the perspective of a provincial branch of a large state-owned bank,this paper explains the specific functions of the branch IT department,analyzes the status of IT service outsourcing,discusses the problems of IT outsourcing decision-making,and proposes solutions.Three main factors influencing IT outsourcing decision-making are proposed: strategic fitness,main business driving force,and industry knowledge update requirements.Several types of IT outsourcing that can be used are summarized: turnkey outsourcing,dedicated personnel,technical consulting,talent dispatch,and non-outsourcing models.The effects of the three factors on decision-making of IT service outsourcing and their differences in degree of importance are discussed.Through analyzing the impact of different value combinations of the three major factors on IT outsourcing services,the corresponding strategies of IT service outsourcing are derived.The innovations and contributions of this thesis summarized as proposing an IT Service Outsourcing Decision Model based on the IT status of the branch.By imputing the expert's evaluation level of a certain IT business in the strategic fitness,the main business driving force,and the industry knowledge update requirements to the model,the model outputs the outsourcing strategy that the business should take.In addition,the model is able to determine whether all the current IT affairs of the branch are outsourced and what kind of outsourcing model is used.This paper also summarizes the execution process and key points risk management of each outsourcing model,so that the model can not only guide the branch's current IT outsourcing service decisions but also provide advice on outsourcing decisions that will emerge in the future.