2005•Journal of Beijing Technology and Business UniversityRequires access

Research on Decision-Making Model of Outsourcing Strategy for Enterprises

Guo Yong-hui

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Abstract

During these years, outsourcing has been the most effective method in the reformation theories for foreign enterprises. It has also been one of the most important powers for enterprises to undergo a fundamental change and thus has become an important strategy for enterprises to obtain competitive advantage. While enterprises can enjoy such benefits as cost reduction from outsourcing, they also have to take the risks from its failure. Therefore, it is a precondition to make correct decisions for outsourcing to succeed. This paper analyzes both the business operation levels of outsourcing enterprises and decision-making levels of outsourcing. On that basis, decision-making model of outsourcing strategy is proposed to provide reference for enterprises to make proper decision of outsourcing.

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What this paper is about

During these years, outsourcing has been the most effective method in the reformation theories for foreign enterprises. It has also been one of the most important powers for enterprises to undergo a fundamental change and thus has become an important strategy for enterprises to obtain competitive advantage. While enterprises can enjoy such benefits as cost reduction from outsourcing, they also have to take the risks from its failure. Therefore, it is a precondition to make correct decisions for outsourcing to succeed. This paper analyzes both the business operation levels of outsourcing enterprises and decision-making levels of outsourcing. On that basis, decision-making model of outsourcing strategy is proposed to provide reference for enterprises to make proper decision of outsourcing.

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Available abstract

During these years, outsourcing has been the most effective method in the reformation theories for foreign enterprises. It has also been one of the most important powers for enterprises to undergo a fundamental change and thus has become an important strategy for enterprises to obtain competitive advantage. While enterprises can enjoy such benefits as cost reduction from outsourcing, they also have to take the risks from its failure. Therefore, it is a precondition to make correct decisions for outsourcing to succeed. This paper analyzes both the business operation levels of outsourcing enterprises and decision-making levels of outsourcing. On that basis, decision-making model of outsourcing strategy is proposed to provide reference for enterprises to make proper decision of outsourcing.

Key concepts: Outsourcing, Knowledge process outsourcing, Business, Industrial organization, Competitive advantage, Precondition, Business administration, Process management

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