Research On Incentive Approaches Of Software Outsourcing Project In NY Company

Through NY Company’s software outsourcing project case studies and the shortcoming of current incentive policies, I found some factors influent the delivery quality of software outsourcing projects.The study found that the main factors affecting the quality of delivery include: Outsourcing Company has no willing to improve the quality of software. The stuffs in outsourcing company haven’t been encouraged enough. Further theoretical analysis found that the root reasons cause to this problem are "information asymmetry" result to "adverse selection" and "moral hazard", which cause the outsourcing partners fear of being "ripped off" and do not want to make "specific investment in human resources". According to the research of Maslow’s hierarchy of requirements, and knowledge workers incentives, NY as the Outsourcing owner, can also make its effort on "inspired by the spirit".Consider about how to solve the "information asymmetry" and eliminate the worry about "specific investment in human resources " from outsourcing partner, We finally give the suggestion of:establish the relationship between quality improvement and reward by sign the framework agreement and make outsourcing partners establish the long-term willingness to cooperate with NY; feedback to partners on "special investment in human resources" which make efficiency improved, and allow outsourcing partner recommend the excellent staff to NY to eliminate the hesitate of "specific investment in human resources". This paper also emphasizes the necessity of directly inspired by the spirit to outsourcing stuff when they make improvement on their job. Make use of all these ways will final result the improvement of delivery quality of out-sourcing projects.