Font Size: a A A

Incentive Mechanism Of It Outsourcing Based On Principal - Agent Theory

Posted on:2012-07-03Degree:MasterType:Thesis
Country:ChinaCandidate:B ZhouFull Text:PDF
GTID:2219330371451610Subject:Management Science and Engineering
Abstract/Summary:PDF Full Text Request
Since the 90s of 20th century, outsourcing had a rapid development, as a business reduce their costs and improve core competitiveness of enterprises means. Because of the characteristics of information technology, as well as IT outsourcing can reduce costs, urging enterprises to focus resources on core competencies, taking the new technologies of agents to enterprises and other benefits, IT outsourcing has become the fastest growing one. As information technology continues to develop and the increasing of IT demands, many Chinese enterprises are beginning to use IT outsourcing to reduce IT costs, enhance core competitiveness. However, due to the existence of information asymmetries in the process IT outsourcing, IT outsourcing will bring an information asymmetry risk. This article will focus on the process of IT outsourcing in different stages, enterprises should be how to develop Incentive Mechanism to avoid the information asymmetric risks.First, based on depth theoretical study, IT outsourcing was divided into two stages:before the contract signed and after the contract signed, and select the principal-agent theory as the main theory to analyze of the asymmetric information problem each stage; and then for the first Stage, before the contract signed, analyzing the adverse selection risk from information asymmetry, and building and analyzing the screening model; for the second phase of after the contract signed, analyzing the moral hazard from the information asymmetry, and using the principal-agent theory to build and analyze the multi-task principal-agent model. through the analyzing of IT outsourcing process in different stages, so that enterprise can develop the corresponding optimal incentive mechanism to achieve the purpose of avoiding risk in different stages of IT outsourcing. Finally, a series of recommendations were come up that the enterprise should be how to reduce the risk of asymmetric information in the process of IT outsourcing.
Keywords/Search Tags:IT Outsourcing, Adverse Selection, Screening Model, Principal-agent, Moral Hazard
PDF Full Text Request
Related items