Kunming Iron And Steel Mining Mining Industry Outsourcing Research

Since the 1980s, Along with the tendency of Economic Globalization and Economy Integration, in order to meet customer's needs and enhance core competencies, more and more companies give up the traditional "large and whole" or "small and whole" enterprise organization model, hand over some part of their business to other company to do, that is outsourcing. As a strategy and management model, outsourcing has been increasingly used by more enterprises. But practice has proved that, not all outsourcing is successful. That is because not all enterprises conduct the analytical study to the outsourcing. Why should outsourcing? Outsourcing what service? How to outsourcing? How to control risk after outsourcing? If these questions could not be solved, the failure of outsourcing is inevitable.This paper first mentioned the general principle, and then carried on a systematic and comprehensive review and summary of the correlation theories. It also described the outsourcing theory, the core competence theory, the resource-based strategy theory and the relationships between them.Aiming at the appearing problems in outsourcing of the mining and separation industry in Kunming Iron and Steel (KISC) iron mine, this paper analyze the cause and the main problems of it, and also discuss the risk of it. Through the form of questionnaires and the method of Analytical Hierarchy Process (AHP), this paper established outsourcing vendor selection mathematical model, and provided a scientific template for outsourcing of the mining and separation industry in KISC iron mine. It is useful to avoid the risk management of outsourcing vendor by contract management, on-site quality management, on-site safety management, on-site technical management, and cultural integration. In the end, a summary and the proposal to the following research are given.Key words:outsourcing, industry of mining and separation, outsourcing vendor selection, outsourcing vendor management.