A Study On The Motivation And Decision-making Of Outsourcing

It is true that an enterprise can be focus on core business and more flexible through outsourcing. However, outsourcing is not always successful. Among lots of reasons on the failure of outsourcing, improper decision-making is the most crucial factor. An enterprise must obey a systematic and scientific decision-making process, and make proper policy analysis, in order to improve its business and enhance its competitiveness.Based both on qualitative analysis and quantitative analysis, this paper try to find out the factors which influencing decision-making of outsourcing, using both theoretical study and example study.A decision-making model is also established, in order to help enterprises to make right decisions, advance its competitiveness, and ensure that they grow stably and healthily. Meanwhile, this paper makes some suggestions on decision-making of outsourcing, hoping to enrich the theoretical study of outsourcing theory.Based on theoretical study of business outsourcing, the causality of outsourcing can be divided into financial motivation, strategic motivation and management motivation. Through these causes, the paper tries to find out the basic factor and crucial factors. With AHP analysis method, an integrated model of decision-making of outsourcing is built. There are three stages: non-core business identification, scheme preparation and non-core business decision-making of outsourcing. Meanwhile, core business identification model is based on concentration and uniqueness of core business. An enterprise should outsource its non-core business, and reserve its core business. Combined with factors mentioned above, non-core business decision-making model can identified which scheme is the best by AHP analysis method. Finally, this paper takes Jiahuang Bedding Co, Ltd., Foshan as an example to make case study with the models.