How Resource Demand and Transaction Cost Determine Service Outsourcing Governance Mechanism:A Case Study of Company N

The purpose and motivation of service outsourcing determines that outsourcing behavior can't be thoroughly explained only by TCE or RBV.Based on the literature review,it's proposed that the governance mechanism of service outsourcing is determined by the resource demand of client and transaction cost between vendor and client,and a corresponding theoretical model is developed.Taking N company's four different software service outsourcing project as cases,the relationship among resource demand,transaction cost and governance mechanism is studied.According to the results,appropriate service outsourcing governance mechanism is suggested according to different resource demand of client and different level of transaction cost.